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Air Peace chairman Allen Onyema has painted a stark picture of Nigeria’s aviation industry, saying many airlines are forced to borrow money simply to buy fuel as soaring operating costs squeeze the sector.
Air Peace boss on the cost crisis
Onyema, who heads one of Nigeria’s largest carriers, bemoaned the operating challenges facing airlines, pointing to the heavy burden of aviation fuel and other expenses. He warned that the economics of running an airline in the country have become extremely difficult.
He used blunt language to describe the situation, suggesting that Nigerian airlines often struggle to survive from the outset because of the costs stacked against them. His comments echoed long-running concerns within the industry.
Why fuel costs hurt so much
Aviation fuel, known as Jet A1, is one of the largest single expenses for any airline. When its price rises or supply becomes unstable, carriers face immediate pressure on their cash flow, sometimes forcing them to seek short-term financing to keep aircraft flying.
Borrowing to cover routine costs such as fuel is a sign of financial strain. It raises the risk of debt building up and can threaten the long-term viability of operators already grappling with thin margins.
A sector under pressure
Nigeria’s airlines have repeatedly highlighted a range of challenges, from foreign exchange difficulties to the cost of maintenance and spare parts, much of which must be sourced abroad. These pressures combine to make profitability elusive for many carriers.
Industry leaders argue that without relief, the cycle of high costs and tight finances will continue to undermine the growth of domestic aviation, even as demand for air travel remains strong.
What it means for travellers
When airlines face higher costs, the effects often reach passengers through ticket prices, route decisions and service reliability. A financially stressed sector can struggle to expand capacity or keep fares affordable.
For a country of Nigeria’s size, reliable and accessible air travel is important for business, tourism and connectivity. The health of the industry therefore matters well beyond the airlines themselves.
Calls for support
Operators have called for measures to ease the burden, including more stable access to fuel and foreign exchange, as well as a policy environment that supports the sector’s survival and growth. Onyema’s remarks add to those appeals.
A familiar warning
Airline operators in Nigeria have raised similar alarms over the years, pointing to a combination of high fuel prices, foreign-exchange constraints and costly maintenance as persistent threats to the sector’s survival. The latest remarks add a fresh voice to those concerns.
Industry watchers say sustainable solutions will require coordinated action, from more reliable fuel supply to a friendlier policy and financing environment. Without such steps, they warn, carriers will continue to operate under intense financial strain.
For passengers and the wider economy, the stakes are considerable, since affordable and dependable air travel underpins commerce and connectivity across the country.
Whether his warning prompts action remains to be seen. For now, it offers a candid view from one of the industry’s most prominent figures on the financial tightrope Nigerian airlines walk. Viorah TV will continue to follow developments in the aviation sector.
