Nigerian Airlines Face Potential Shutdown Over Fuel Costs

Nigeria is experiencing a critical shortage of jet fuel due to maritime disruptions in the Strait of Hormuz. The shortage follows reports of Iran firing on three ships in the waterway, intensifying shipping assaults amid a US blockade. This instability threatens regional aviation and energy logistics. Smaller domestic airlines in Nigeria may halt operations entirely due to rising jet fuel costs. The Nigerian government has attempted to prevent a total shutdown by capping fuel prices and reducing airline debts. Nigerian billionaire and refinery owner Aliko Dangote warned of potential consequences during a SEMIFOR forum last week. The cost increases are expected to disproportionately impact smaller carriers with limited cash reserves. He stated that if the situation continues, the majority of African airlines will not be able to survive. Dangote noted that carriers may fold if the conflict persists. The International Energy Agency head, Fatih Birol, also warned that fuel supplies could disappear. Dangote specifically noted that the continuation of war could lead to the folding of carriers.