Nigeria’s government is stepping up efforts to curb rising aviation fuel costs after talks between Taiwo Oyedele and Festus Keyamo, as airline Air Peace reduced its Abuja–London flights citing supply constraints.
Oyedele, minister of finance and coordinating minister of the economy, said he held talks with Keyamo on Wednesday in Abuja to address the sharp rise in the cost of Jet A1 fuel and mounting pressure on airline operators.
In a statement posted on X on Saturday, Oyedele said both ministers had “constructive discussions on the challenges facing the aviation sector, particularly the recent sharp rise in the cost of aviation fuel and its impact on airlines’ operations and pricing.”
He said the talks focused on measures to stabilise the sector and shield passengers from higher fares, while also exploring opportunities to reposition the industry for long-term growth.
“Our objective is to build a more sustainable, efficient, and competitive aviation industry that supports economic activity and connectivity,” Oyedele said.
The meeting followed fresh government intervention earlier in the week, aimed at easing financial pressure on domestic carriers.
On Thursday, authorities approved a 30 percent discount on outstanding debts owed by local airlines to aviation agencies, in a move expected to provide immediate relief to operators grappling with rising costs.
Announcing the decision after a high-level meeting in Abuja, Keyamo said the measure had been approved by President Bola Tinubu.
The meeting brought together oil marketers, airline operators, regulators and other stakeholders amid concerns that rising aviation fuel prices could disrupt flight operations across the country.
Domestic airlines have warned of possible service cuts or fare increases if the situation persists, raising fears of reduced connectivity and higher travel costs for passengers.
Those concerns appeared to materialise over the weekend, as Air Peace announced a temporary reduction in its Abuja–London service.
In a statement posted on X on Saturday, the airline said it had cut its flight frequency on the route from daily service to three times weekly due to aviation fuel supply constraints.
“We wish to inform you that our Abuja to London service has been temporarily adjusted to three weekly flights until July 1,” the airline said.
“This is due to the current aviation fuel supply constraints affecting flight operations nationwide and around the world.”
Air Peace said the adjustment was necessary to maintain safety and operational reliability, adding that full service on the route is expected to resume from July 1, 2026.
The airline apologised for the disruption and said it was working closely with relevant stakeholders while monitoring the situation.
The development underscores the growing strain on Nigeria’s aviation sector, where operators face a combination of high fuel costs, foreign exchange pressures and infrastructure challenges.
Jet A1 fuel, which accounts for a significant portion of airline operating expenses, has seen sustained price increases in recent months, squeezing margins and forcing carriers to reconsider route viability and pricing strategies.
Beyond immediate interventions, Oyedele outlined broader economic priorities as part of the government’s reform agenda.
He said the focus would remain on boosting productivity and economic growth through a stable, investor-friendly environment, while maintaining fiscal discipline and improving revenue generation without overburdening vulnerable groups.
He also stressed the need for stronger coordination across government institutions and deeper collaboration with the private sector.
“Good policy design alone is not enough; success will be defined by execution. We are committed to disciplined implementation, accountability, and measurable results,” Oyedele said.
Analysts say the effectiveness of the government’s measures will depend on how quickly they translate into lower operating costs for airlines and more stable fares for passengers.
For now, the combination of policy intervention and supply constraints suggests that pressure on Nigeria’s aviation sector may persist in the near term, even as authorities move to contain its impact.