Jet Fuel Crisis in Nigeria: FG Seeks 30-Day Credit Window for Airlines to Prevent Flight Disruptions

By Mark Agwu · Published April 28, 2026

Nigeria’s aviation sector is facing one of its toughest operational challenges in recent years as soaring jet fuel prices threaten airline profitability, passenger fares, and domestic flight schedules. In response, the Federal Government has moved to ease the crisis by seeking a 30-day credit window for airlines, allowing carriers to purchase aviation fuel now and pay later.

The intervention comes as local airlines warn that the rising cost of Jet A1 fuel, also known as Aviation Turbine Kerosene (ATK), has become unsustainable. Several operators have already raised fares, while others warned of potential route cuts and operational disruptions if urgent relief measures were not introduced. (Reuters)

Why Jet Fuel Prices Became a Crisis

Jet fuel is one of the largest cost components for airlines worldwide, but in Nigeria, operators say it has become a full-scale emergency. According to industry reports, prices surged by more than 270% in recent months, putting enormous pressure on airline finances.

The spike has been linked to a combination of factors, including:

• Global energy market volatility
• Foreign exchange pressures
• Domestic supply bottlenecks
• Distribution and logistics costs
• Rising international benchmark prices

Although Nigeria now has local refining capacity through the Dangote Refinery, domestic airlines say local supply has not translated into cheaper fuel due to deregulated market pricing and strong export demand.

FG’s Emergency Intervention

To avoid flight disruptions and stabilize the sector, the Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), convened emergency meetings with fuel marketers, aviation regulators, and airline operators.

Following the talks, the government directed marketers to provide airlines with a 30-day credit window, allowing carriers to receive fuel supplies immediately and settle payments within one month.

This move is expected to improve cash flow for airlines that have struggled with the burden of upfront fuel payments.

In addition, government encouraged direct fuel sales from marketers to airlines, a strategy designed to cut out middlemen, reduce pricing inefficiencies, and improve transparency in the supply chain. (Nairametrics)

Jet Fuel Price Cap Introduced

As part of the relief package, authorities also introduced an indicative pricing band for aviation fuel.

According to the new framework:

• Jet fuel in Lagos is expected to sell between ₦1,760 and ₦1,988 per litre
• In Abuja, prices are expected to range from ₦1,809 to ₦2,037 per litre

The camp is intended to prevent excessive price hikes while broader reforms are negotiated.

This represents a major reduction from reports that some airlines have been paying as high as ₦3,300 per litre under market conditions.

Relief for Airline Debts

Beyond fuel intervention, President Bola Tinubu recently approved a 30% debt relief on obligations owed by airlines to aviation agencies.

The relief applies to accumulated charges such as:

• Parking fees are owed to FAAN
• Navigation fees owed to NAMA
• Other statutory aviation charges

Officials say the measure is aimed at helping domestic carriers stay afloat while fuel prices remain volatile.

Why the 30-Day Credit Window Matters

For airlines, cash flow is often the difference between maintaining schedules and grounding aircraft.

Most carriers must pay for fuel, aircraft maintenance, airport handling, insurance, crew salaries, and regulatory charges.

When fuel suppliers demand immediate payment during a price spike, airlines can quickly run into liquidity problems.

The new 30-day credit system gives operators breathing room, allowing them to continue selling tickets and generating revenue before paying fuel invoices.

Industry analysts say the arrangement could prevent mass cancellations, stabilize domestic routes, slow further fare increases, protect jobs in the aviation sector, and restore confidence among passengers.

Passengers Still Face Higher Fares

While the government intervention may reduce pressure, travelers are unlikely to see instant ticket price reductions.

Many airlines have already adjusted fares upward to reflect higher operating costs. Others consolidated routes or reduced frequencies to conserve fuel.

Unless global prices ease significantly, passengers may continue paying elevated fares for domestic travel in the short term.

The Dangote Refinery Factor

Nigeria’s Dangote Refinery has become a major talking point in the crisis.

The facility reportedly produces large volumes of jet fuel, but exports to Europe and international buyers have remained attractive due to better margins. As a result, domestic airlines argue that Nigeria’s local refining boom has not yet translated into affordable fuel at home.

Stakeholders are now urging the government to explore priority domestic supply quotas, lower logistics costs, naira-based fuel purchases, and more transparent pricing formulas.

What Happens Next?

The success of the government’s intervention will depend on implementation.

Questions remain over whether:

• Marketers will fully honor the credit window
• Price caps can be sustained
• Airlines will pass savings to passengers
• Supply volumes remain consistent nationwide

Regulators are expected to continue mediating between operators and suppliers in the coming weeks.

A Crucial Test for Nigeria’s Aviation Industry

Nigeria’s domestic aviation sector is vital for business travel, trade, tourism, and national connectivity. If airlines begin suspending routes due to fuel costs, the broader economy could feel the impact quickly.

The 30-day credit window may not solve every structural problem, but it offers immediate relief at a critical moment.

For now, the Federal Government’s message is clear: keep aircraft flying, stabilize fuel prices, and buy time for deeper reforms.