H1 2026: Nigerian Airlines Struggle with Rising Costs as FAAN Faces Policy Challenges

Nigeria’s aviation sector endured a turbulent first half of 2026, with domestic airlines grappling with soaring operating costs while key aviation agencies, particularly the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Civil Aviation Authority (NCAA), came under increased public and regulatory scrutiny.

Airline operators faced severe financial pressure following a sharp rise in the price of Jet-A1 aviation fuel, which significantly increased operating expenses. Ibom Air disclosed that the cost of fuelling a single flight rose from an average of ₦2.1 million in January to about ₦7.6 million in April. The Airline Operators of Nigeria (AON) also warned of a possible nationwide suspension of flight operations after claiming that Jet-A1 prices had surged from about ₦900 per litre to ₦3,300 per litre within weeks, although the Major Energies Marketers Association of Nigeria (MEMAN) disputed the figures.

The aviation industry also experienced operational disruptions caused by frequent bird strikes, forcing some airlines to review schedules and increase maintenance costs. Air Peace reduced the frequency of its Abuja-London route, while Rano Air temporarily suspended parts of its operations as operators sought ways to manage rising expenses.

FAAN also faced criticism over the implementation of its cashless payment policy at Lagos and Abuja airports, with passengers and stakeholders reporting operational difficulties during the rollout. The agency came under further scrutiny after a fire gutted the old terminal of the Murtala Muhammed International Airport in Lagos, destroying critical air-to-ground communication equipment. The incident reignited concerns over safety standards and insurance coverage at government-owned airports.

Meanwhile, the NCAA’s regulatory oversight was questioned following several high-profile incidents, including the controversial landing of a private aircraft on a public road in Ogwashi-Uku, Delta State, raising fresh concerns about aviation safety and compliance.

Despite growing passenger demand, industry stakeholders warned that persistent increases in fuel prices, foreign exchange volatility and rising operational costs continue to threaten the financial sustainability of domestic airlines. Analysts argue that addressing these structural challenges will require coordinated government intervention, stable aviation policies and sustained investment in airport infrastructure to ensure the long-term growth of Nigeria’s aviation industry.

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