The Federal Government has directed aviation fuel marketers to grant airline operators a 30-day credit window and begin direct sales to airlines in a bid to address Nigeria’s worsening jet fuel scarcity and rising prices.
The directive followed a series of emergency meetings convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), alongside stakeholders in the aviation and petroleum sectors, including the Ministries of Aviation and Petroleum Resources, FAAN, NCAA, NAMA, airlines, and fuel marketers.
According to an executive summary of the meeting, stakeholders also called for regulatory intervention to stabilise prices by reviewing key pricing components tied to international benchmarks.
The committee agreed on an indicative price range for aviation fuel, putting Lagos between N1,760 and N1,988 per litre, and Abuja between N1,809 and N2,037 per litre, based on recent Platts market averages.
It warned that prices could rise further due to global volatility, particularly the ongoing geopolitical tensions affecting crude oil supply and distribution.
To improve efficiency, regulators were also directed to reduce the number of airside fuel distributors to only those with verified infrastructure and capacity, in collaboration with FAAN and NCAA.
The issue of growing debts between airlines and fuel suppliers was also discussed, with the Ministry of Aviation mandated to convene talks aimed at resolving outstanding payments.
Marketers were further encouraged to introduce flexible payment terms, including the 30-day credit arrangement for airlines.
The committee also recommended including aviation fuel under the government’s naira-for-crude policy as part of broader efforts to reduce forex pressure and stabilise fuel costs in the aviation sector.
