The Federal Government has introduced new stabilisation measures for Nigeria’s aviation sector, including a cap on jet fuel prices and a 30-day credit arrangement for airlines, in response to rising operational costs and growing pressure on carriers.
The intervention, coordinated through the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), follows emergency consultations with fuel marketers and airline operators aimed at preventing further disruptions linked to escalating aviation fuel expenses.
Brandspur Aviation News Desk reports that under the new framework, jet fuel pricing will now be benchmarked within a regulated range to reduce volatility and ensure greater price predictability for operators in the sector.
According to regulatory guidelines, aviation fuel prices in Lagos are expected to fall between N1,760 and N1,988 per litre, while Abuja will record a range of N1,809 to N2,037 per litre. The policy also introduces a 30-day credit facility for airlines to ease immediate cash flow pressure on fuel procurement.
Authorities have directed fuel marketers and airlines to agree on a fair pricing structure within the approved band, with an emphasis on improving transparency and reducing supply chain inefficiencies. A technical committee further recommended direct sales of aviation fuel from marketers to airlines to enhance cost efficiency and limit intermediary-related price distortions.
The policy shift comes amid sustained pressure on Nigeria’s aviation industry, where airlines have faced sharp increases in operating costs driven largely by a surge in jet fuel prices. Operators had earlier warned that costs had risen significantly, forcing adjustments in airfares and raising concerns over flight sustainability.
The situation has been further compounded by global energy market volatility linked to geopolitical tensions in the Middle East, particularly disruptions affecting supply routes such as the Strait of Hormuz, a critical channel for global crude and refined petroleum movement.
The Federal Government is also exploring additional reforms, including the possible inclusion of aviation fuel in Nigeria’s naira-for-crude framework to reduce foreign exchange exposure for airlines. Discussions are also ongoing around pricing structures linked to domestic refining and distribution efficiency improvements.
These measures form part of broader efforts to stabilise Nigeria’s aviation industry, which continues to face challenges from high taxation, foreign exchange constraints, and persistent fuel price volatility impacting airline profitability and operational stability.
