Nigeria's government has announced measures to contain soaring jet fuel prices, including setting indicative price ranges and allowing airlines to purchase supplies on credit. These steps follow a dramatic increase in fuel costs, which have risen by over 270%, threatening airline operations.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) specified the retail price targets—NGN1,760-1,988 naira (USD1.28-1.44) per litre in Lagos and NGN1,809-2,037 (USD1.30-1.48) per litre in Abuja—based on data from April 17-23, 2026. Authorities warned that market volatility, fueled by regional conflicts and supply chain issues, could further elevate fuel prices.
Measures aimed at stabilizing the aviation sector
In response to earlier warnings from the Airline Operators of Nigeria (AON), the government approved a 30% relief on airlines' outstanding obligations to regulatory agencies. Additionally, it directed fuel suppliers, airlines, and regulators to agree on a "fair" fuel price to avert a sector-wide shutdown. President Bola Tinubu authorized a temporary relief, with plans to facilitate debt write-offs for domestic carriers.
"The government is committed to preventing a collapse of Nigerian airlines amid unprecedented fuel price hikes,"
The authorities also introduced a 30-day credit window for fuel payments and tasked the Ministry of Aviation and Aerospace Development with mediating disputes. A technical committee proposed direct sales of jet fuel by suppliers to airlines within the approved price range, aimed at reducing costs and improving transparency.
The committee also recommended engaging with Dangote Petroleum Refinery and Petrochemicals regarding higher international jet fuel premiums and called for stricter validation of airside fuel distributors to ensure supply chain integrity. Inclusion of jet fuel into Nigeria's naira-for-crude scheme was suggested to help airlines hedge foreign exchange risks.
Major Nigerian carriers such as Air Peace, MaxAir, and Overland Airways, which account for significant market share, are affected by these developments. The government's interventions aim to stabilize the sector and prevent disruptions in domestic and regional operations.
