The Federal Government has moved to stabilise Nigeria’s aviation sector amid a worsening jet fuel crisis, urging marketers to grant airline operators a 30-day credit facility and sell aviation fuel directly to them to ease mounting operational pressures.
The intervention followed high-level stakeholder meetings convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority after earlier engagements led by the Ministry of Aviation and Airspace Management on April 22–23, 2026.
Participants included key aviation and petroleum agencies such as the Federal Airports Authority of Nigeria, Nigerian Airspace Management Agency, and Nigerian Civil Aviation Authority, alongside airline operators and fuel marketers.
According to an executive summary of the meeting obtained in Abuja, stakeholders called for urgent regulatory intervention to curb rising fuel costs linked to international pricing benchmarks. They urged adjustments to pricing components tied to global indices like Platts, as well as refinery-related cost variations.
A new indicative pricing band was agreed upon, pegging aviation fuel between ₦1,760 and ₦1,988 per litre in Lagos, and ₦1,809 to ₦2,037 per litre in Abuja, based on global oil price trends between April 17 and 23, 2026. However, stakeholders warned that ongoing geopolitical tensions—particularly the U.S.-Iran conflict—could push prices higher due to market volatility.
To improve efficiency, regulators were also tasked with streamlining airside fuel distribution by reducing the number of operators to only those with verifiable infrastructure and capacity.
The issue of accumulated debt between airlines and fuel suppliers was also addressed. The Ministry of Aviation is expected to mediate talks between both parties, while marketers were encouraged to adopt flexible payment systems, including the proposed 30-day credit window.
Additionally, stakeholders recommended incorporating Aviation Turbine Kerosene (Jet A1) into the Federal Government’s naira-for-crude initiative to reduce forex dependence and stabilise domestic pricing.
Despite these measures, the crisis continues to deepen across the industry.
Domestic airlines now face unprecedented fuel costs, with operators reporting expenditures exceeding ₦7 million per flight. Ibom Air revealed that its fuel cost per flight surged from about ₦2.1 million in January to approximately ₦7.6 million by late April—a more than 350% increase within weeks.
Airlines warn that such costs are unsustainable, especially as competitive pressures limit fare increases. Many operators are already considering reducing flight capacity, raising concerns about potential disruptions nationwide.
The crisis is compounded by over ₦9 billion in outstanding debts owed by airlines to ground handling companies, including Nigerian Aviation Handling Company Plc and Skyway Handling Company of Nigeria Plc, which have threatened to suspend services.
Meanwhile, the Dangote Petroleum Refinery is reportedly benefiting from record jet fuel margins, exporting large volumes to Europe where demand and pricing are higher. Although its ex-depot price aligns with import parity, additional logistics and distribution costs have driven the effective market price for airlines to over ₦3,000 per litre.
Industry analysts note that Nigeria’s deregulated fuel market allows prices to reflect global trends, limiting the immediate impact of local refining capacity on domestic pricing.
Stakeholders maintain that while the government’s proposed measures may offer short-term relief, long-term stability will depend on improving crude supply to local refineries, reducing supply chain inefficiencies, and aligning domestic fuel policies with the realities of the global energy market.
