Nigeria: Despite Fx Stability, Jet Fuel Supply, Domestic Airlines Face Shrinking Market

What the report says

Nigeria’s domestic airlines are still struggling with a smaller passenger market even though foreign-exchange access has become more stable and aviation fuel supply is now more reliable, according to a This Day report distributed by AllAfrica. The article, published from Lagos on 21 August 2026, says the main pressure is economic contraction, which has reduced the number of people traveling by air.

Industry figures quoted in the report offered different explanations for the sector’s condition. Ado Sanusi, managing director of Aero Contractors, said airlines have eased two longstanding problems — forex shortages and irregular fuel supply — but still face limited capacity and high operating costs. He argued that fares remain high because the market has not recovered enough to support lower prices, while many domestic and regional routes are still not well served.

United Nigeria Airlines spokesperson Chibuike Uloka said fuel prices remain elevated and suggested some carriers are selling tickets below sustainable levels, possibly to generate cash flow rather than profit. He also claimed marketers sometimes create artificial scarcity. By contrast, Chris Ndulue of Ndano Energy said jet fuel prices have eased from earlier peaks and attributed supply stability to the Dangote Refinery, while noting that pricing and payment terms remain complicated.

The report matters because it points to an airline sector that may be more stable on input supply than in past years, but still under strain from weak demand, high costs and uneven route coverage.