The Federal Government has moved to address the worsening jet fuel crisis affecting Nigeria’s aviation sector by proposing a 30-day credit window for airline operators.
The Minister of Aviation and Aerospace Development, Festus Keyamo, is spearheading the intervention following a sharp rise in the cost of Aviation Turbine Kerosene, which has significantly increased airlines’ operating expenses.
The proposal emerged from a series of high-level meetings convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, involving key stakeholders across the aviation and petroleum industries.
At the meetings, participants agreed on several measures aimed at stabilising supply and pricing, including direct sale of aviation fuel to airlines and a review of pricing components linked to international benchmarks.
An indicative pricing band was also suggested, placing the cost of Jet A1 between ₦1,760 and ₦1,988 per litre in Lagos and ₦1,809 to ₦2,037 per litre in Abuja, depending on market conditions.
Despite these efforts, airline operators say the situation remains dire. Carriers are now spending over ₦7m to fuel a single domestic flight, a sharp increase from earlier in the year.
Ibom Air disclosed that its fuel costs have risen from about ₦2.1m per flight in January to roughly ₦7.6m in April, describing the surge as unprecedented and unsustainable.
The Aviation Ground Handlers Association of Nigeria has issued a warning over unpaid fees, raising the possibility of service disruptions if the situation is not resolved quickly.
At the same time, the Dangote Petroleum Refinery is benefiting from strong margins on jet fuel exports, particularly to Europe, even as domestic airlines struggle with rising costs.
Although the refinery supplies a large portion of local demand, additional logistics and distribution expenses have pushed the effective price of fuel to as high as ₦3,300 per litre for airlines.
Analysts say the crisis is being driven not only by domestic factors but also by global oil market volatility, worsened by geopolitical tensions such as the ongoing U.S.-Iran conflict.
In a deregulated market like Nigeria’s, these external pressures continue to directly influence local fuel prices.
Stakeholders warn that unless the proposed interventions are implemented effectively, the rising cost of aviation fuel could force airlines to cut operations or suspend flights, with wider implications for the country’s economy and connectivity.
