The Federal Government has directed aviation fuel marketers to begin direct sales to airline operators and consider a 30-day credit facility as part of emergency measures to address worsening jet fuel shortages and soaring prices in Nigeria’s aviation sector.
The decision followed a series of high-level meetings coordinated by the Nigerian Midstream and Downstream Petroleum Regulatory Authority after an earlier engagement convened by the Minister of Aviation and Airspace Management on April 22 and 23, 2026.
Representatives from the Ministries of Aviation and Petroleum Resources, alongside agencies including the Federal Airports Authority of Nigeria, Nigerian Airspace Management Agency, Nigerian Civil Aviation Authority, airline operators and fuel marketers, participated in the discussions.
According to an executive summary of the meeting, stakeholders called for urgent intervention to stabilise prices and review pricing components tied to international market benchmarks.
They also agreed on a new indicative retail pricing band based on prevailing global oil conditions and domestic costs. The recommended range was set at N1,760 to N1,988 per litre in Lagos and N1,809 to N2,037 per litre in Abuja.
The document noted that the benchmark was based on Platts average prices recorded between April 17 and 23, warning that purchases outside that period could be more expensive due to market volatility linked to the U.S.-Iran conflict and varying operating costs.
Stakeholders further recommended that regulators reduce the number of airside fuel distributors to only operators with verified infrastructure and capacity, with NMDPRA expected to work with FAAN and NCAA on implementation.
The issue of outstanding debts between airlines and fuel marketers was also raised, with the Ministry of Aviation asked to facilitate consultations aimed at resolving unpaid obligations.
To reduce pressure on operators, marketers were encouraged to allow airlines up to 30 days to settle payments for fuel supplies.
The committee also proposed the inclusion of Aviation Turbine Kerosene under the Federal Government’s naira-for-crude programme, which was designed to reduce dependence on foreign exchange and help stabilise petroleum product prices.
Nigeria’s aviation industry has struggled for months with high and unstable Jet A1 prices, significantly increasing airline operating costs. Domestic carriers have repeatedly warned that the situation has forced higher ticket fares and reduced operations.
The latest crisis has been worsened by global crude price movements and geopolitical tensions, especially the conflict involving the United States and Iran.
Industry players said the success of the newly proposed measures would be crucial in restoring stable supply, reducing costs and keeping airlines operational.
The fuel crisis comes as airlines also face another threat, with domestic carriers reportedly owing more than N9bn to ground handling companies. Those firms have threatened to suspend services, raising fears of widespread flight disruptions.
The affected handlers include Skyway Handling Company of Nigeria Plc, Nigerian Aviation Handling Company Plc, Butake Handling Company, Precision Handling Company Limited and Swissport Handling Company.
Meanwhile, airline operators say the surge in fuel prices now means more than N7m is required to fuel a single domestic flight.
Ibom Air said it currently spends about N7.6m to fuel one flight, compared with an average of N2.1m in January. The airline described the increase as unprecedented and said costs had risen by more than 350 per cent within weeks.
The carrier noted that despite the pressure, airlines have been unable to raise fares enough to match the higher costs because of competition and wider economic realities.
Ibom Air said it initially expected the spike to be temporary, but the trend has continued for nearly two months with no relief in sight. It warned that capacity cuts may become necessary if conditions persist.
The airline added that if the current situation continues, some operators may no longer be able to remain in business.
United Nigeria Airlines spokesperson Chibuike Uloka said the pressure affects all carriers because they buy from the same fuel market. He added that airlines operating larger aircraft such as Airbus A320s and Boeing jets face even higher costs because of greater fuel consumption.
At the same time, a Reuters report said the Dangote Petroleum Refinery is benefiting from strong profit margins on jet fuel exports, driven by high demand in Europe and premium international pricing.
The 650,000 barrels-per-day refinery is reportedly producing around 24 million litres of jet fuel daily, with a large share exported to Europe ahead of the busy summer travel season.
European imports of Nigerian jet fuel reportedly climbed to between 78,000 and 96,000 barrels per day in April, the highest level recorded.
Dangote Group Vice President Devakumar Edwin said the refinery is also meeting most domestic demand, estimated at about 2.1 million litres daily.
Analysts noted that although the refinery is earning strong returns, it still relies heavily on imported crude from countries including the United States and Brazil, which increases feedstock costs.
They added that limited access to local crude, partly due to existing crude-for-loan obligations tied to Nigeria’s oil production, reduces the refinery’s margin potential.
Stakeholders said while the government’s intervention may provide short-term relief, a lasting solution will require improved crude supply to local refineries and greater efficiency across the downstream distribution chain.
They also warned that the presence of a large refinery alone does not automatically guarantee lower fuel prices in a deregulated market where prices remain linked to global conditions.
Dangote Refinery, originally designed to reduce imports and strengthen Nigeria’s energy independence, is now planning a public listing and an expansion of refining capacity to 1.4 million barrels per day.
The refinery’s growing gains from jet fuel exports, however, continue to contrast sharply with the financial strain facing domestic airlines at home.
