Nigeria’s aviation industry is at a tipping point, and comprehensive solutions are now required across the entire ecosystem. In a detailed letter referenced “REF: ASRTI/001/FGN/26, Monday, 27th April 2026,” industry think tank group, the Aviation Safety Round Table Initiative (ASRTI) outlined a coordinated rescue plan. The appeal, sent to the President and key policymakers, emphasised that the crisis extends beyond fuel to liquidity strain, debt pressures, and systemic imbalances.
Interwoven Crisis Demands System-Wide Solutions
ASRTI described the situation as a “systemic emergency” affecting airlines, airports, and service providers simultaneously. The letter stated: “The Jet A1 crisis, the liquidity strain on airlines, and the cascading financial pressures… have converged into a systemic emergency.”
However, the group stressed that focusing on one issue alone will fail. Therefore, coordinated solutions must address pricing distortions, debt exposure, and operational sustainability together.
Pricing Distortion and Debt Spiral Exposed
ASRTI backed its solutions call with hard data on pricing distortion and systemic risk. The letter stated:
“The evidence is unambiguous: domestic Jet A1 prices have sharply diverged from international refinery-gate benchmarks between January and April 2026, creating a distortion that threatens the survival of our airlines and, by extension, the entire aviation ecosystem.”
It added: “A representative Platts/IATA-style benchmark of $184.63 per barrel… implies a refinery-gate parity of roughly ₦1,559 per litre. Yet depot prices in Nigeria surged… to ₦3,000-₦3,300… the domestic price was nearly double the global parity.” Therefore, the group concluded: “This is not a global-price problem alone; it is a widening local spread that must be confronted with urgency and precision.”
Chain Reaction Threatens Entire Ecosystem
ASRTI also warned that pricing shocks have triggered wider financial instability. The letter noted:
“The sector faces a dangerous chain reaction triggered by debt concessions… airports warned of income losses, concessionaires sought relief, and ground handlers now threaten service suspension over ₦9bn owed.”
However, it stressed the need for proper sequencing: “If airlines collapse, the entire system collapses with them… there will be no agency receivables, no ground-handling revenue, no concession income.”
Airlines Must Anchor Recovery Efforts
The group insisted that airlines remain the foundation of the sector. Without them, the value chain collapses.
ASRTI warned: “If airlines collapse, the entire system collapses with them.” This includes revenue losses for agencies and service providers.
Fuel Pricing Reform Within Broader Solutions
While fuel remains critical, ASRTI positioned it within a wider reform package. The letter proposed a temporary parity mechanism to correct pricing distortions.
It stated: “This is not a subsidy but a temporary parity-restoration measure.”
Therefore, fuel intervention should act as a stabiliser, not a standalone fix. Transparency and audit controls are essential to maintain credibility.
Emergency Liquidity and Debt Management
ASRTI proposed targeted financial support to address immediate pressures. Airlines require short-term funding tied to operational priorities.
The letter explained: “Funds must be tied to strict milestones: safety compliance, payroll continuity, and uninterrupted essential services.”
Meanwhile, all beneficiaries must present debt resolution plans. This ensures that financial support contributes to long-term stability rather than temporary relief.
Balanced Relief for Service Providers
The crisis has also strained ground handlers and concessionaires. ASRTI acknowledged their challenges while prioritising system balance.
It noted: “A 30% mandated haircut… may be necessary,” but only for verified claims.
In addition, worker protection remains central. Wage continuity and severance safeguards must accompany any relief measures. Therefore, these solutions aim to prevent further disruption across the service chain.
Transparency, Oversight and Accountability
To manage interventions effectively, ASRTI recommended a neutral reconciliation framework. Each entity would receive verified financial statements.
The letter stressed: “No entity receiving support should be allowed to compromise safety, maintenance, training, or regulatory compliance.”
An independent ombudsman would oversee implementation. Agencies such as Federal Airports Authority of Nigeria are expected to support enforcement.
Structural Reforms to Reset the Industry
Beyond immediate relief, ASRTI called for structural changes. The aviation charging system requires urgent review.
The group recommended engaging a global advisory firm to benchmark Nigeria’s charges. Therefore, duplicated fees can be eliminated and cost efficiency improved.
In addition, a National Energy Price Protection Programme would prevent future volatility. This includes transparency measures and competition oversight.
Growth Strategy to Sustain Long-Term Solutions
ASRTI’s vision extends beyond crisis management. The proposed “Fly Nigeria, Fly” initiative focuses on growth and competitiveness.
The letter highlighted the need for route incentives, PPP-driven airport upgrades, and investment in cargo logistics. It also stressed local capacity development in maintenance and training.
Therefore, these solutions aim to reposition Nigeria as a strong aviation hub in Africa.
Urgent Call for Coordinated Action
ASRTI concluded with a clear warning on timing and urgency. The group stated: “Time is not on our side. The cost of inaction is far greater than the cost of decisive intervention.”
It urged government to act swiftly, balancing immediate relief with structural reforms.
The letter was signed by President ASRTI, Air Commodore (rtd) Ademola Onitiju, mni, and General Secretary ASRTI, Olumide Fidel Ohunayo, reinforcing its authority and industry backing.
Final Word
The aviation sector requires unified solutions, not isolated fixes. ASRTI’s roadmap provides a practical framework for recovery. However, execution speed and policy discipline will determine whether the industry stabilises or deteriorates further.
