Nigeria’s government has introduced emergency measures to stabilise the aviation sector, including capping jet fuel prices and allowing airlines to purchase fuel on credit, as rising costs threaten flight operations.
Under new guidelines from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), aviation fuel prices will be maintained within a defined range. In Lagos, prices are set between 1,760 and 1,988 naira per litre, while in Abuja, they will range from 1,809 to 2,037 naira per litre. These benchmarks are based on market data recorded between April 17 and April 23.
Despite the cap, authorities acknowledged that prices may still fluctuate due to global market volatility, including geopolitical tensions such as the ongoing U.S.–Iran situation and increasing supplier costs.
Fuel Surge Triggers Urgent Intervention
The policy follows emergency consultations between government officials and aviation stakeholders after airlines raised alarm over a dramatic surge in jet fuel prices—reportedly exceeding 270%. The spike has already forced operators to increase ticket prices and sparked fears of reduced flight capacity across the country.
President Bola Tinubu recently approved a 30% relief on airlines’ debts owed to aviation agencies. He also directed key stakeholders—including fuel marketers, airlines, and regulators—to agree on a fair pricing framework within 72 hours to prevent a potential shutdown of the sector.
As part of the intervention, airlines have been granted a 30-day credit window to settle fuel payments. Meanwhile, the aviation ministry has been tasked with mediating disputes between operators and fuel suppliers to ensure smooth implementation of the new measures.
Industry Reforms and Supply Chain Adjustments
A technical committee set up by the NMDPRA has proposed additional reforms aimed at improving efficiency and transparency in the fuel supply chain. Among its recommendations is that fuel marketers sell directly to airlines within the approved price band, reducing intermediary costs.
Regulators are also expected to engage with Dangote Petroleum Refinery and Petrochemicals over concerns about pricing premiums linked to international jet fuel benchmarks.
Further proposals include validating airside fuel distributors with adequate infrastructure, potentially reducing the number of suppliers operating at airports to streamline operations.
Additionally, authorities are considering including jet fuel in Nigeria’s naira-for-crude initiative—a move that could shield airlines from foreign exchange volatility and reduce operational costs.
A Bid to Stabilise Air Travel
The government’s actions reflect growing urgency to stabilise the aviation industry, which plays a critical role in Nigeria’s economy. By addressing fuel pricing and supply challenges, policymakers aim to prevent widespread disruptions and maintain confidence in the sector amid ongoing economic pressures.
