AON Calls On Regulator To Check Alleged Racketeering Activities Involved In Fuel Pricing
Airline Operators of Nigeria (AON) has called on the regulatory authorities in Nigeria to look into alleged racketeering activities involved in the sale of jet fuel which it says has contributed to high pricing of the product beyond what the airlines can survive with.
Speaking at a Channels Television programme, Politics Today, the Public Relations Officer of the association, Prof. Obiora Okonkwo said a major challenge is that the racketeers are having access to the product more than the main suppliers. He also called on the federal government to consider and take measures that would help check the high jet fuel price challenge faced by airlines in Nigeria.
AON had in a letter dated April 14, 2026, signed by Alhaji (Dr.) Abdulmunaf Yunusa Sarina, AON President, and addressed to Mr. Clement Isong, Executive Secretary and Executive Officer of Major Energies Marketers Association of Nigeria (MEMAN), called for a “ proportionate review of jet a1 price”, referring to an earlier letter dated March 30, 2026.
The letter stated that “the price of Jet A1 as sold by marketers has risen significantly from the initial ₦900/litre as at February 28, 2026, to ₦3,300/litre as at today. This represents an increase of over 300%. This astronomical and artificial increase is not commensurate with the rise in crude oil prices and is well above international market benchmarks, which reflect approximately a 30% increase in crude oil cost.
For the past four (4) weeks, airlines have endured this burden and continued operations out of patriotism and in the spirit of service to the nation. However, the situation has now become unbearable and clearly unsustainable.
Currently, airline revenues are insufficient to cover the cost of fuel alone, which is only one of many operational expenses incurred daily. The situation continues to deteriorate.
The actions of fuel marketers are effectively decimating the aviation industry and putting the nation’s economy, safety, and security at risk, as airlines are gradually being forced to suspend operations. For the avoidance of doubt, this arbitrary increase has already severely impacted one airline, forcing it to ground all operations since March 13, 2026. This may become inevitable for other airlines if the situation does not change immediately.
Aviation remains a sector of strategic national importance. The continued arbitrary rise in jet fuel prices is both unhealthy and detrimental to national wellbeing. Airlines are now facing existential threats, with serious consequences for the broader economy.
If ticket prices are adjusted to reflect the current cost of aviation fuel, flights will operate with low passenger loads. Conversely, if airlines cease operations, financial institutions will be impacted, millions of livelihoods will be lost, and insecurity may increase.
We therefore urge you to prevail on marketers to proportionately adjust jet fuel prices in line with international market realities, as airlines can no longer sustain purchases at the current exorbitant rates.
Accordingly, we hereby give NOTICE that if this trend persists, all airlines in Nigeria will be compelled to suspend operations effective Monday, April 20, 2026. This serves as our final appeal.”
Responding to this letter, the MEMAN in a letter signed by Clement Isong and dated April 16th, 2026 thanked AON for bringing the situation to MEMAN’s attention and empathized “with the very difficult situation currently faced by the Nigerian aviation sector. The sharp increase in Jet Al prices has placed significant pressure on airline operations, and we fully understand the serious implications this has on the sustainability of the aviation sector and the broader economy. The challenge is that the ongoing geopolitical tensions in the Middle East have severely disrupted global supply chains and significantly affected the pricing and availability of middle distillate products such as diesel and Jet A1. Transport costs within the country have therefore gone up by an average of 50%.
It is also important to note that the transportation and distribution of ATK is governed by specific protocols for quality assurance and safety reasons, which are more stringent than those applicable to most other petroleum products. Dedicated equipment, specialized handling procedures, and rigorous quality checks at every stage of the supply chain are non-negotiable requirements. These necessary safeguards inherently make the logistics and distribution of ATK a more cost-intensive undertaking compared to other petroleum products. We want this context to be clearly understood as part of any assessment of pricing in the sector.
That said, we wish to assure you that reducing the cost burden of petroleum product distribution is a matter of active and ongoing attention within our Association. Steps to improve safety and simultaneously reduce logistics, delivery, and operational costs across the downstream value chain are continually being discussed, shared, and implemented between MEMAN members and the MEMAN Secretariat through regular webinars, training programmes, and industry engagements. It is a core part of our mandate to share these best practices broadly with the downstream industry so that distribution costs are minimized to the greatest extent possible, without compromising on safety or quality standards.
In light of the above, we must express our surprise at the price of N3,300 per litre stated in your letter as the price being charged to some airline operators. MEMAN members do not discuss pricing as this will be against competition law, however, the price of N3,300 is over N1,000 higher than our average market survey price of Jet Al carried out for this exercise, after receipt of your letter. We would therefore strongly encourage any operators currently being charged at those levels to exercise their commercial right to seek alternative suppliers. Our market survey confirms that more competitively priced options are available, and MEMAN members remain committed to providing ATK at fair, market-reflective prices. We have also received indications of falling costs, which should begin to reflect in market prices in the coming weeks.
Finally, we strongly encourage AON members to adopt a more sustainable pricing approach by moving away from spot pricing and entering into longer-term contractual arrangements with their suppliers. This would provide greater price predictability, help stabilize cash flow, and reduce exposure to daily market swings.
Please be assured that MEMAN has been actively engaged with the relevant regulatory authorities on this matter. Following due consultations, we have formally communicated several practical suggestions and recommendations aimed at mitigating the impact on the aviation sector and the wider economy. We continue to engage constructively with the NMDPRA and other key stakeholders to find balanced and sustainable We remain committed to working collaboratively with al stakeholders, including the Airline Operators of Nigeria, to ensure the long-term stability and growth of the downstream petroleum sector while supporting critical national services such as aviation.”
