Government Steps In to Address Fuel Crisis
The Federal Government of Nigeria has moved to stabilise jet fuel prices. It aims to ease pressure on airlines operating across the aviation sector.
Festus Keyamo leads the intervention alongside the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The government says the move will address ongoing challenges in aviation fuel supply and pricing.
However, the policy has triggered concern in both the aviation and petroleum downstream sectors.
Stakeholders Raise Concerns Over Price Control
Industry analysts argue that the aviation fuel market should remain fully deregulated.
They say supply and demand should determine prices. They also warn that price controls may create shortages.
In addition, they fear a rise in black-market activity if suppliers struggle to recover costs.
Some experts also warn that the intervention may resemble subsidy-style controls. They argue this could reverse gains made after deregulation.
Government Holds Emergency Stakeholder Meetings
Despite the concerns, the aviation ministry and regulators continue talks with stakeholders.
They met airline operators and fuel marketers between April 22 and April 24, 2026.
Officials focused discussions on fuel supply challenges and pricing disputes.
The government also set up a technical committee. It includes regulators, airlines, and fuel marketers.
Committee Proposes New Price Range
The committee proposed an indicative price band for aviation fuel.
In Lagos, the price range stands at ₦1,760 to ₦1,988 per litre. In Abuja, it ranges from ₦1,809 to ₦2,037 per litre.
The committee based these figures on global crude benchmarks. It also considered volatility linked to international tensions, including the U.S–Iran situation.
It further recommended direct sales from fuel marketers to airlines within the approved range.
Structural Reforms Under Consideration
The committee also proposed several reforms to improve efficiency.
It recommended adjustments to pricing premiums tied to refinery benchmarks. It also proposed validation of airside fuel distributors.
In addition, it suggested reducing the number of licensed airside operators at airports.
Authorities also plan to introduce a 30-day credit window for airlines. They are also reviewing jet fuel inclusion in the naira-for-crude programme.
Airlines Report Rising Operational Costs
Airlines say fuel costs continue to rise sharply.
Ibom Air reported that fuel expenses increased by more than 350 percent in a few months.
Costs rose from about ₦2.1 million per flight in January to about ₦7.6 million per flight.
The airline warned that further increases may force it to reduce flights or cut capacity.
Operators also question why domestic fuel remains expensive despite local refinery output.
Labour Raises Economic Concerns
The Trade Union Congress of Nigeria also called for urgent intervention.
It warned that rising fuel prices are driving inflation and increasing transport costs.
The union urged the government to introduce temporary tax relief for workers and manufacturers.
It also called for the use of excess crude revenue to support local refining and reduce fuel costs.
The group further criticised rising electricity tariffs and pointed to insecurity and production costs as additional pressures on the economy.
Aviation Sector Faces Critical Decision Point
The government says its intervention aims to stabilise prices and prevent airline collapse.
However, critics argue that market-based pricing remains the best long-term solution.
Fuel costs remain unstable, and airlines continue to warn of operational risks.
Stakeholders say the coming weeks will determine whether the intervention stabilises the sector or creates further imbalance.
