In a bid to rescue the domestic aviation sector from an imminent collapse, the Federal Government has directed petroleum marketers to grant airline operators a 30-day credit window for the purchase of Jet A1 fuel.
This move aims to provide immediate financial relief to carriers struggling with a severe liquidity squeeze caused by skyrocketing energy costs.
The intervention followed high-level stakeholders’ meetings convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), alongside the Ministry of Aviation and Aerospace Development.
The sessions, held between April 22 and 23, 2026, were prompted by a dangerous spike in prices and a looming strike by ground handling companies over unpaid debts.
To stabilize the market, the government has set a new indicative pricing band for aviation fuel. Under this arrangement, the product is expected to sell between N1,760 and N1,988 per litre in Lagos, while in Abuja, the price should range from N1,809 to N2,037.
Officials warned that these figures are tied to the Platts average recorded in mid-April and could fluctuate further due to global volatility sparked by the U.S.-Iran conflict.
A major highlight of the resolution is the push for marketers to sell fuel directly to airlines, bypassing unnecessary intermediaries. The NMDPRA, in collaboration with the Federal Airports Authority of Nigeria (FAAN), has also been tasked with auditing airside distributors to ensure only those with verifiable infrastructure remain in operation.
Furthermore, the committee recommended that the Federal Government include Aviation Turbine Kerosene (ATK) in its naira-for-crude initiative to reduce foreign exchange pressure on the sector.
The crisis has reached a breaking point for domestic carriers. Ibom Air recently revealed that the cost of fueling a single flight has surged from N2.1 million in January to approximately N7.6 million this April—a staggering 350 percent increase.
Other operators, particularly those flying larger aircraft like the Boeing 737 or Airbus A320, reported even higher costs, sometimes exceeding N10 million per trip.
While airlines face operational ruin, a Reuters report indicates that the $20 billion Dangote Petroleum Refinery is recording significant profit margins on jet fuel.
However, the bulk of this production is being exported to Europe to meet international demand and capture premium pricing.
Although the refinery meets the daily domestic demand of about 2.1 million litres, the Airline Operators of Nigeria (AON) noted that local prices remain inflated by logistics and storage costs, sometimes reaching N3,300 per litre at the pump.
Compounding the fuel crisis is a N9 billion debt owed by airlines to ground handling firms. Companies such as NAHCO and SAHCO had threatened to withdraw services today, Tuesday, which would effectively ground all flight operations.
Nevertheless, the Ministry of Aviation is currently mediating to resolve these outstanding liabilities and prevent a total shutdown of the airspace.
