The House of Representatives, on Tuesday, called on the Federal government to intervene and stabilise the rising cost of aviation fuel, also known as Aviation Turbine Kerosene, warning that the situation is putting Nigeria’s airline industry under serious strain.
The resolution followed the adoption of a motion of urgent public concern sponsored by Hon. Paschal Agbodike during plenary.
Leading the debate, Agbodike said jet fuel accounts for between 40 and 60 per cent of airlines’ operational costs in Nigeria, making it the single largest expense for carriers.
He noted that operators are struggling to stay afloat while maintaining service standards in collaboration with the Nigerian Civil Aviation Authority (NCAA), amid increasing costs.
Agbodike further lamented that several domestic airlines have had to cut down flight frequencies or ground aircraft entirely, resulting in reduced capacity across the sector.
According to him, the high cost of jet fuel, alongside the foreign exchange liquidity crisis affecting the purchase of aircraft parts, has placed significant pressure on the finances of local carriers and exposed them to the risk of collapse.
“The House is further concerned that the continued instability in Jet Fuel pricing, if not urgently addressed, could lead to the collapse of major domestic airlines, a scenario that would have devastating consequences for the national economy, employment, and regional integration,” he said.
Following deliberations, the House called on the Federal Government, through the Federal Ministry of Petroleum Resources and the Nigerian National Petroleum Company Limited (NNPCL), to enter into a direct price-stabilisation agreement with local airlines to ensure more predictable and affordable jet fuel costs.
The House also mandated its joint Committees on Aviation, Petroleum Resources (Downstream), and Finance to investigate the ongoing increase in jet fuel prices and report back within two weeks.