Jet Fuel Crisis: FG Seeks 30-Day Credit for Airlines as Costs Surge

The Federal Government has urged fuel marketers to grant airline operators a 30-day credit window and sell aviation fuel directly to them, as part of urgent measures to address Nigeria’s worsening jet fuel crisis.

 

The move follows a series of high-level engagements led by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), after an earlier stakeholders’ meeting convened by the Minister of Aviation and Airspace Management on April 22–23, 2026.

 

Participants included officials from the Ministries of Aviation and Petroleum Resources, alongside key agencies such as FAAN, NAMA, NCAA, airline operators and fuel marketers.

 

According to an executive summary of the meeting, stakeholders recommended regulatory intervention to stabilise prices and review key pricing components tied to international benchmarks.

 

“Marketers should consider a 30-day credit window for airlines to pay up for supplies made,” the document stated, adding that direct sales to operators would also improve supply efficiency.

 

The committee projected an indicative price band of N1,760–N1,988 per litre in Lagos and N1,809–N2,037 per litre in Abuja, warning that prices could exceed these levels due to volatility driven by global oil dynamics, including the ongoing U.S.–Iran tensions.

 

Beyond pricing, the panel advised regulators to streamline airport fuel distribution by reducing the number of airside operators to those with proven capacity, while also calling for a meeting to resolve mounting debts between airlines and marketers.

 

The intervention comes amid mounting concerns from domestic carriers over spiralling fuel costs, which now account for the bulk of operating expenses.

 

Ibom Air disclosed that it currently spends about N7.6 million to fuel a single flight, up from N2.1 million earlier in the year.

 

“The fuel price situation is an unprecedented crisis… we are paying approximately N7.6m to fuel every flight,” the airline said, describing the increase as unsustainable.

 

Operators warn that continued cost pressures could force capacity cuts or disrupt services if urgent action is not taken.

 

The Airline Operators of Nigeria (AON) also raised alarm, noting that effective fuel costs have climbed above N3,000 per litre when logistics are factored in.

 

The crisis is unfolding even as the Dangote Petroleum Refinery records strong margins from jet fuel exports, with a significant portion of its output reportedly shipped to Europe where demand is high.

 

Industry analysts say the situation highlights a disconnect between global market opportunities and domestic affordability, particularly in a fully deregulated pricing environment.

 

Despite government efforts, stakeholders warn that without structural fixes—such as improved crude supply to local refineries and more efficient distribution—Nigeria’s aviation sector may continue to face instability.

 

The situation is further compounded by over N9 billion in debts owed by airlines to ground handling companies, raising fears of potential service disruptions if unresolved.