The House of Representatives has called on the Federal Government to urgently intervene in the rising cost of aviation fuel, warning that domestic airlines are under severe financial pressure.
The resolution followed the adoption of a motion of urgent public importance moved on Tuesday during plenary by Paschal Agbodike, who represents Ihiala Federal Constituency of Anambra State.
Agbodike said Aviation Turbine Kerosene remains a major cost driver for airlines, accounting for between 40 and 60 per cent of total operating expenses.
He said, “airline operators are struggling for survival while also offering quality services together with the Nigeria Civil Aviation Authority to Nigerians amidst the spiralling costs.”
He warned that several airlines have already begun scaling back operations due to rising costs.
“The House is concerned that many domestic airlines have been forced to reduce their flight frequencies or ground aircraft entirely, leading to reduced capacity. The high cost of jet fuel, coupled with the impact of the foreign exchange liquidity crisis on the purchase of aircraft parts, has placed immense pressure on the balance sheets of Nigerian carriers, exposing them to potential collapse.
“We are 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.”
