Nigeria Projects Aviation Fuel Prices to Reach N2,037/Litre Amid Crisis

The Nigerian Federal Government, through a high-level engagement involving key stakeholders, has projected a significant increase in aviation fuel (ATK) prices, potentially ranging from N1,760 to N2,037 per litre. This projection, emerging from meetings on April 22-23, 2026, and further refined by a technical committee on April 24, signals a challenging period for the domestic aviation sector. The proposed price range, based on Platts average rates from April 17-23, reflects the ongoing efforts to stabilize supply and tackle the persistent pricing challenges that have plagued airlines.

The technical committee, comprising officials from the Ministry of Aviation, Ministry of Petroleum Resources, NMDPRA, and other aviation bodies, has put forth several recommendations. These include direct sales of aviation fuel from marketers to airline operators to improve distribution efficiency, and a review of pricing components to ensure stability. The committee also advised streamlining airside operations by validating distributors and reducing operator numbers based on agreed criteria. These measures aim to create a more predictable and sustainable operating environment for airlines, which have been grappling with high operational costs and debt.

Furthermore, the committee addressed the critical issue of mounting debts within the sector by urging the Ministry of Aviation to facilitate consultations between oil marketers and airlines. A proposed 30-day credit window for marketers to offer airlines could ease financial pressure. The potential inclusion of aviation fuel under the Federal Government’s naira-for-crude initiative is also being considered as a broader strategy to stabilize supply and pricing. While these steps are intended to alleviate the crisis, the projected price increase underscores the economic pressures facing Nigeria's aviation industry and the broader economy.