MINISTER OF AVIATION, FESTUS KEYAMO ‘SAN’
BY FRONTLINE REPORTERS
In a bid to rescue Nigeria’s aviation sector from a worsening jet fuel crisis, the Federal Government has urged petroleum marketers to grant airlines a 30-day credit facility and sell aviation fuel directly to operators.
The intervention followed a series of high-level emergency meetings convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), after an earlier stakeholders’ session called by the Minister of Aviation and Airspace Management on April 22 and 23, 2026.
The meetings brought together officials from the Ministries of Aviation and Petroleum Resources, alongside top aviation agencies such as the Federal Airports Authority of Nigeria (FAAN), Nigerian Airspace Management Agency (NAMA), Nigerian Civil Aviation Authority (NCAA), airline operators, and fuel marketers.
According to an executive summary obtained by Frontline Reporters in Abuja on Monday, participants called for urgent regulatory action to tame soaring aviation fuel prices and stabilise supply.
Stakeholders specifically urged the NMDPRA to engage relevant authorities 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 recently increased by the refinery,” the document stated.
New Price Benchmarks Announced
At the end of deliberations, stakeholders agreed on a fresh indicative pricing band for aviation fuel based on global crude oil trends and local operating realities.
- Lagos: N1,760 – N1,988 per litre
- Abuja: N1,809 – N2,037 per litre
The report, however, warned that prices could rise further outside the benchmark window because of volatility caused by the ongoing U.S.-Iran conflict and other market forces.
Direct Sales, Fewer Distributors Proposed
To improve efficiency, regulators were advised to streamline airport fuel operations by reducing the number of airside distributors to only those with proven infrastructure and capacity.
The committee also directed the Ministry of Aviation to broker peace talks between airlines and marketers over mounting unpaid debts.
As part of relief measures, marketers were strongly encouraged to adopt more flexible payment systems.
“Marketers should consider a 30-day credit window for airlines to pay for supplies made,” the communiqué stated.
Stakeholders also recommended the inclusion of Aviation Turbine Kerosene (ATK) under the Federal Government’s naira-for-crude initiative, designed to cut forex pressure and reduce petroleum product costs.
Airlines Groan Under Crushing Costs
Nigeria’s airlines say the fuel crisis is pushing operators to the brink.
Domestic carriers have battled sharp and unstable Jet A1 prices for over two years, forcing fare increases and flight reductions. The latest spike has worsened fears of massive disruption across the sector.
The crisis is compounded by over N9 billion debt owed by airlines to ground handling companies, which have threatened to suspend services, raising the risk of nationwide flight chaos.
Affected handlers include:
- Skyway Handling Company of Nigeria Plc
- Nigerian Aviation Handling Company Plc
- Butake Handling Company
- Precision Handling Company Limited
- Swissport Handling Company
N7.6 Million to Fuel One Flight – Ibom Air
Airlines say the cost of fueling a single domestic flight has now exceeded N7 million.
Ibom Air disclosed that it currently spends about N7.6 million to fuel one aircraft, compared to N2.1 million in January.
The airline described the situation as unprecedented and unsustainable.
“The cost of fueling our aircraft has more than tripled. Domestic airlines are baffled why aviation fuel in Nigeria has ballooned to this level, far above the rest of the world,” the airline said.
It added that airlines have been unable to fully pass the burden to passengers because of competition and harsh economic realities.
Ibom Air warned it may soon cut flight capacity if the trend continues.
Dangote Refinery Profits Soar Amid Crisis
While airlines struggle, the $20 billion Dangote Petroleum Refinery is reportedly reaping huge gains from jet fuel exports.
A Reuters report on Monday revealed that the 650,000 barrels-per-day refinery is benefiting from premium jet fuel demand in Europe, where buyers are paying higher prices ahead of the summer travel season.
Industry data showed Dangote is producing about 24 million litres of jet fuel daily, with a significant portion exported abroad.
Dangote Group Vice President, Devakumar Edwin, confirmed the trend, saying the refinery also meets most of Nigeria’s domestic demand, estimated at 2.1 million litres daily.
Bigger Questions for Nigeria
Despite government efforts to calm the crisis, analysts warn that owning a mega refinery does not automatically guarantee cheaper fuel.
Experts say in a deregulated market, prices will continue to mirror global oil realities unless Nigeria improves crude supply to local refiners and fixes inefficiencies in the distribution chain.
For now, Nigeria’s aviation sector stands at a dangerous crossroads — with airlines battling survival, passengers bracing for hi
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