Nigeria Caps Jet Fuel Prices, Grants Airlines Credit Lifeline After Shutdown Threat

Nigeria’s government has capped the price of Jet A1 fuel and introduced a 30-day credit window for airlines, moving to avert nationwide flight disruptions after operators warned that surging fuel costs could ground the industry.

A document from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) sets a pump price band of N1,760 to N1,988 per litre ($1.29 – $1.46) in Lagos and N1,809 to N2,037 per litre in Abuja. The benchmarks cover the period of 17 to 23 April. The regulator cautioned that prices could still rise due to market instability linked to the US-Iran conflict and higher supplier costs.

The intervention follows urgent talks triggered by domestic carriers, who reported that jet fuel prices had jumped by more than 270 percent. The spike had already forced fares higher and threatened significant capacity cuts.

President Bola Tinubu last week approved a 30 percent relief on airline debts to aviation agencies and ordered fuel marketers, airlines, and regulators to agree on a “fair” fuel price within 72 hours. The talks produced the current cap and granted airlines 30 days to pay for fuel on credit. The aviation ministry has been directed to mediate outstanding debt disputes between operators and oil marketers.

A technical committee set up by the NMDPRA recommended that fuel marketers sell directly to airlines within the approved price band to cut costs and improve transparency. The committee also called for immediate engagement with Dangote Petroleum Refinery and Petrochemicals over recently increased premiums applied to international jet fuel benchmarks.

Further recommendations include auditing airport fuel distributors to ensure adequate infrastructure and potentially reducing the number of authorised suppliers at airports. The committee also proposed including jet fuel in Nigeria’s naira-for-crude initiative to shield airlines from foreign exchange exposure.

Neither the NMDPRA nor the aviation ministry responded to requests for comment.