Nigeria’s federal government is considering a major shift in aviation fuel pricing as a technical committee recommends including Jet A1 in the naira-for-crude initiative. The proposal is aimed at easing the financial pressure on airline operators who have struggled with soaring fuel costs in recent months. If implemented, the move could mark a turning point for Nigeria’s aviation industry, which has faced repeated threats of disruption.
The recommendation followed a high-level meeting convened by Festus Keyamo, minister of aviation and aerospace development, on April 22 and 23. The meeting brought together key stakeholders, including regulators, airline operators, and fuel marketers, to tackle persistent challenges around the supply and pricing of aviation fuel. Agencies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) played a central role in shaping the discussions.
Rising fuel prices have been at the heart of the crisis. The Airline Operators of Nigeria (AON) had earlier warned of a potential shutdown of operations after Jet A1 prices surged from N900 per litre in February to as high as N3,300 per litre. This sharp increase, driven by global market volatility and operational costs, has significantly impacted airlines’ ability to maintain affordable ticket prices and stable operations.
To address the situation, the committee proposed new pricing benchmarks, suggesting that aviation fuel should retail between N1,760 and N1,988 per litre in Lagos, and slightly higher in Abuja. It also recommended direct sales from marketers to airlines, improved regulation of fuel distributors, and a 30-day credit window to ease cash flow pressures on operators. These measures are designed to stabilize pricing while ensuring a more efficient supply chain.
The proposed inclusion of aviation fuel in the naira-for-crude scheme builds on an earlier policy approved under Bola Tinubu, which allows crude oil to be sold to local refineries in naira. By extending this framework to aviation fuel, the government hopes to reduce dependence on foreign exchange, lower costs, and prevent future disruptions in the aviation sector. Industry observers say the success of this plan will depend on swift implementation and strong collaboration between regulators and market players.
source: The cable