To tackle Nigeria’s worsening jet fuel shortage and price surge, the Federal Government has asked marketers to grant airline operators a 30-day credit window and sell aviation fuel directly to them.
The development is sequel to a series of high-level engagements convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, following an earlier meeting called by the Minister of Aviation and Airspace Management on April 22-23, 2026.
The session brought together representatives from the Ministries of Aviation and Petroleum Resources, as well as major aviation agencies, including the Federal Airports Authority of Nigeria, Nigerian Airspace Management Agency, Nigerian Civil Aviation Authority, airline operators, and aviation fuel marketers.
According to a copy of the executive summary of the meeting obtained by one of our correspondents in Abuja on Monday, the stakeholders called for urgent regulatory intervention to stabilise prices, urging the authority to engage relevant bodies to review pricing components linked to international benchmarks.
“To ensure price stability, NMDPRA should engage DPRP to adjust the premium on Platts and the cost variation element that was recently increased by the refinery,” the document stated.
At the end of the deliberations, the stakeholders agreed on a new indicative pricing band based on prevailing global oil market dynamics and domestic cost considerations. “The indicative end-user price should range between N1,760 – N1,988 per litre in Lagos and N1,809 – N2,037 per litre in Abuja,” the document stated.
It added that the pricing benchmarks were derived from Platts average prices recorded between April 17 and 23, 2026, warning that prices could climb even higher outside that window.
“Products purchased outside this window may be higher due to high volatility in current prices precipitated by the U.S.-Iran war and varying operational costs by operators,” the summary noted.
In addition, the committee advised regulatory agencies to streamline airport operations by reducing the number of airside fuel distributors to only those with verifiable infrastructure and capacity.
“NMDPRA is to work with FAAN and NCAA to validate airside distributors with infrastructure to trim the number of operators based on agreed criteria,” it added.
The issue of mounting debt between airline operators and fuel marketers also featured prominently during the discussions. To resolve this, the Ministry of Aviation was tasked with facilitating a consultative meeting between both parties.
“The Ministry of Aviation should facilitate a consultative meeting between oil marketers and airline operators to resolve outstanding debts,” the communiqué said.
As part of measures to ease financial pressure on airlines, marketers were encouraged to introduce more flexible payment terms. “Marketers should consider a 30-day credit window for airlines to pay up for supplies made,” it stated.
The committee further recommended the inclusion of Aviation Turbine Kerosene under the Federal Government’s naira-for-crude initiative, which was designed to reduce dependence on foreign exchange and stabilise the cost of petroleum products.
Industry crisis
Nigeria’s aviation industry continues to struggle with high and inconsistent Jet A1 fuel costs, significantly impacting airlines’ operating expenses. Over the past two years, domestic airlines have repeatedly raised concerns over surging fuel prices, which at different periods exceeded ₦1,000 per litre, forcing operators to increase ticket fares and, in some cases, scale down operations.
The latest price projections underscore the continued vulnerability of the sector to global oil market fluctuations, particularly amid geopolitical tensions such as the ongoing U.S.-Iran conflict, which has contributed to rising crude oil prices.
Industry stakeholders say the success of the newly proposed measures—especially direct sales, pricing adjustments, and inclusion in the naira-for-crude policy—will be critical to stabilising aviation fuel supply, controlling costs, and sustaining airline operations across the country.
The aviation fuel crisis adds to the challenge facing the sector, including a mounting debt of more than ₦9 billion owed by domestic airlines to ground handling companies, which have threatened to withdraw their services from Tuesday (today), raising fears of widespread flight disruptions.
The looming standoff, triggered by a seven-day ultimatum issued by the Aviation Ground Handlers Association of Nigeria, could cripple both domestic and international operations if unresolved.
The affected companies include Skyway Handling Company of Nigeria Plc, Nigerian Aviation Handling Company Plc, Butake Handling Company, Precision Handling Company Limited, and Swissport Handling Company.
₦7 million fuel cost
Meanwhile, Nigerian airlines said they are now spending over ₦7 million to fuel a single domestic flight, as the sharp increase in aviation fuel prices raises fresh concerns over the viability of their operations.
Airlines held that they are increasingly strained by the spike in costs, with fears mounting that the situation could soon force capacity cuts or broader disruptions if no urgent intervention is made.
Ibom Air, one of the country’s domestic carriers, stated the scale of the crisis, disclosing that it now spends about N7.6m to fuel a single flight, more than triple what it paid just months ago.
The airline, in a statement, described the development as unprecedented and warned that the financial burden is becoming unsustainable for domestic operators.
“The fuel price situation is an unprecedented crisis for Nigeria’s domestic airlines. At Ibom Air, the cost of fueling our aircraft has more than tripled between January and today. From an average of N2.1m per flight in January, as of today, the 27th of April, we are paying approximately N7.6m to fuel every flight.”
The airline noted that the spike represents a sharp escalation in operating costs in just a matter of weeks, placing additional strain on already stretched airline finances.
“This is a more than 350 per cent increase since the beginning of March, a space of just seven weeks! And our aircraft are some of the most fuel-efficient in the domestic market.
“At this point, domestic airlines are baffled at why the price of aviation fuel in Nigeria has ballooned to this level, way above the rest of the world, while the fuel marketers obtain 95 per cent or more of their aviation fuel from Dangote Refinery.”
Ibom Air further explained that despite the rising costs, airlines have been unable to significantly increase fares due to stiff competition and broader economic realities.
“The situation is exacerbated by the fact that a combination of competitive pressures and patriotism has prevented a commensurate increase in our fares, meaning that we and our fellow domestic airlines have had to absorb the immense operating losses resulting from this situation,” it stated.
The airline said it had initially hoped the surge in fuel prices would be temporary, but the situation has persisted longer than anticipated.
“We chose to do this believing that the crisis would pass in a week or two, but it has persisted now for nearly two months, continuously increasing, with no reprieve in sight as of today.
“While we continue to do everything we can to maintain normal operations, it is clear to us that the current conditions are unsustainable.
“We note that, worldwide, where fuel price increases are nowhere near what we are facing in Nigeria, airlines are reducing flights to manage the situation. We, too, will have to take whatever ameliorating actions we can in the days ahead, including reducing our capacity if necessary, to be able to continue to provide services to our customers and our country.”
The Akwa Ibom-based airline warned that if the current trend continued, it could threaten the operation of airlines across the country.
“We also note that, if this situation persists much longer, airlines will not be able to continue operating just to pay for fuel and nothing else. We call on the fuel marketers to seriously reconsider the pricing of aviation fuel to make the airline business model continue to work in Nigeria,” the statement added.
Corroborating the development, the spokesperson for United Nigeria Airlines, Chibuike Uloka, said operators across the industry are facing similar cost pressures, as all airlines source fuel from the same market.
“We all purchase from the same market and source. It’s not cheaper for operator A or B; most airlines spend more than even because the Airbus A320 aircraft consumes more fuel due to its size and capacity, with a minimum of 5,000 litres per uplift.
“So, some operators who operate Airbus or Boeing with more fuel consumption spend double the figure.”
The PUNCH