Nigeria’s aviation sector is under mounting pressure as the Federal Government moves to ease a worsening jet fuel crisis by directing marketers to supply airlines on a 30-day credit basis while also selling fuel directly to operators in a bid to stabilise prices and prevent further disruption.
The intervention follows emergency meetings convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) alongside aviation and petroleum stakeholders, as jet fuel costs continue to climb sharply and strain airline operations nationwide.
At the heart of the discussions is a volatile pricing environment driven by global oil shocks, including geopolitical tensions and supply disruptions, which have pushed aviation turbine fuel (Jet A1) to record highs in the domestic market.
Stakeholders agreed on a new indicative price band ranging between ₦1,760 and ₦1,988 per litre in Lagos and ₦1,809 to ₦2,037 per litre in Abuja, though officials warned that actual market prices could rise further depending on global crude fluctuations and operational costs.
The committee also urged regulators to tighten oversight of airport fuel distribution by reducing the number of airside marketers to only those with verified infrastructure, in a move aimed at improving efficiency and curbing price distortion.
A major sticking point remains the growing debt burden between airlines and fuel suppliers, prompting the Ministry of Aviation to facilitate urgent negotiations between both sides to prevent a breakdown in supply agreements.
Marketers were further encouraged to introduce flexible repayment structures, including a proposed 30-day credit window for airlines, a move expected to ease cash flow pressures across the industry.
Despite these interventions, airlines say the crisis has already reached unsustainable levels, with operators reporting that the cost of fuelling a single domestic flight has surged to as high as ₦7.6 million, more than three times what was recorded earlier in the year.
Ibom Air described the situation as unprecedented, warning that prolonged pressure could force capacity cuts, flight reductions, and possible disruptions if no immediate relief is provided.
Industry players also argue that pricing volatility is worsened by Nigeria’s deregulated fuel market, where domestic aviation fuel costs now track international benchmarks and currency fluctuations without subsidy buffers.
Meanwhile, attention has also turned to the Dangote Petroleum Refinery, which continues to export large volumes of jet fuel to Europe at high margins, even as domestic airlines struggle with soaring local prices and operational losses.
Airline operators insist that unless structural issues in pricing, supply, and forex exposure are addressed, the aviation sector risks deeper instability despite government intervention measures already in motion.
