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🇳🇬 Nigeria /Economy & Trade

Jet fuel crisis: FG seeks 30-day credit window for airlines

From The Punch · (7m ago) English

Summarized and contextualized by DistantNews.

TLDR

  • The Nigerian Federal Government is seeking a 30-day credit window for airlines to address the worsening jet fuel shortage and price surge.
  • Stakeholders, including aviation authorities and fuel marketers, met to discuss stabilizing prices and agreed on an indicative end-user price band for aviation fuel.
  • Measures discussed include streamlining airside fuel distributors, resolving debts between airlines and marketers, and potentially adjusting pricing components linked to international benchmarks.

Nigeria's aviation sector is grappling with a severe jet fuel crisis, prompting urgent interventions from the Federal Government. In response to escalating prices and dwindling supply, the government has proposed a 30-day credit window for airline operators, allowing them to purchase aviation fuel on credit. This measure aims to alleviate the immediate financial pressure on airlines struggling to meet operational costs.

To ensure price stability, NMDPRA should engage DPRP to adjust the premium on Platts and the cost variation element that was recently increased by the refinery.

— Meeting SummaryThis quote outlines a specific recommendation for regulatory action to stabilize aviation fuel prices.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been at the forefront of high-level engagements, bringing together key stakeholders. Representatives from the Ministries of Aviation and Petroleum Resources, alongside major aviation agencies, airline operators, and fuel marketers, convened to find solutions. The discussions focused on stabilizing prices, with stakeholders urging regulatory intervention to review pricing components tied to international benchmarks.

The indicative end-user price should range between N1,760 – N1,988 per litre in Lagos and N1,809 – N2,037 per litre in Abuja.

— Meeting SummaryThis quote provides the newly agreed indicative price range for aviation fuel in key Nigerian cities.

A new indicative pricing band for aviation fuel has been established, ranging from N1,760 to N1,988 per litre in Lagos and N1,809 to N2,037 per litre in Abuja. These benchmarks are based on Platts average prices from April 17-23, 2026, with a warning that prices could rise further due to market volatility, exacerbated by factors such as the U.S.-Iran war and varying operational costs.

Products purchased outside this window may be higher due to high volatility in current prices precipitated by the U.S.-Iran war and varying operational costs by operators.

— Meeting SummaryThis quote warns about potential price increases outside the established window due to global and operational factors.

Further recommendations include streamlining the number of airside fuel distributors to those with verifiable infrastructure and capacity. The critical issue of mounting debt between airlines and fuel marketers is also being addressed, with the Ministry of Aviation tasked to facilitate a consultative meeting to resolve outstanding payments. The proposed credit window and other measures signal a concerted effort to stabilize the sector and ensure the continued operation of airlines.

Marketers should consider a 30-day credit window for airlines to pay up for supplies made.

— Meeting SummaryThis quote highlights a key proposal to ease financial burdens on airlines by offering extended payment terms.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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