The federal government has stepped in to ease mounting pressure on Nigeria’s aviation sector.
It approved a 30 per cent debt discount for domestic airlines while initiating urgent talks to stabilise the soaring price of Jet A1 aviation fuel, reports The Nation.
Minister of Aviation and Aerospace Development, Festus Keyamo, announced the intervention after a high-level meeting in Abuja involving oil marketers, airline chief executives, regulators and government officials.
The meeting followed threats by local airlines to either suspend operations or increase airfares due to rising fuel costs.
Keyamo said President Bola Tinubu approved the debt relief during the meeting, offering immediate financial respite to operators burdened by obligations to aviation agencies.
“Mr President communicated to us, through the Chief of Staff, that he is granting a clear 30 per cent discount to all the airlines on the debts they owe aviation agencies,” the minister said.
Beyond the debt relief, stakeholders agreed to convene a technical session within the next 48 to 72 hours to arrive at a “fair and reasonable” pricing framework for Jet A1 fuel, which has become a major cost driver for airlines.
Keyamo acknowledged that while the downstream petroleum sector operates under a free market regime, regulatory oversight would be applied to prevent exploitative practices.
“It is a free market, yes, but not a licence to go haywire. If there is collusion or any attempt to punish Nigerian consumers, we will address it,” he warned.
Airline operators, however, say their survival hinges on swift intervention.
Speaking on behalf of the Airline Operators of Nigeria (AON), Air Peace Chairman, Allen Onyema, warned that domestic carriers could shut down within seven days if the fuel pricing crisis persists.
He attributed the sharp rise in Jet A1 prices to global tensions, particularly the U.S.-Iran conflict, but argued that the scale of increases in Nigeria far exceeds global trends.
“In Nigeria, we are seeing increases of between 250 and 300 per cent, while other parts of the world have recorded about 70 per cent. This is not proportionate,” Onyema said.
He added that airlines, already grappling with high borrowing costs of up to 35 per cent, cannot continue to absorb escalating fuel expenses.
“We are not saying we don’t want to fly, but we cannot continue to operate under these conditions. Something drastic must be done within days,” he stressed.
Similarly, AON spokesperson Obiora Okonkwo alleged that some fuel marketers are engaging in sharp practices, including creating artificial scarcity despite adequate supply.
According to him, the price airlines pay for Jet A1 does not reflect depot prices, suggesting distortions within the distribution chain.
“We consider this exploitation. There is no shortage from the refinery, yet we are witnessing unjustifiable price increases,” Okonkwo said.
Amid the crisis, the Dangote Petroleum Refinery has emerged as a critical player in both domestic supply and international markets.
Industry data show that the facility exported approximately 876,000 metric tonnes of aviation fuel to Europe between March and April, equivalent to about 1.1 billion litres.
Breakdowns indicate exports of 456,000 tonnes in March and an additional 420,000 tonnes by April 20, underscoring the refinery’s growing capacity and logistical efficiency.
Domestically, AON disclosed that the refinery currently supplies over 95 per cent of Nigeria’s Jet A1 fuel demand, a development operators say has helped sustain flight operations despite global supply disruptions linked to Middle East tensions.
“To airline operators, Dangote is not just a refinery; it is a game changer and a lifesaver,” Okonkwo said.
However, Onyema questioned why fuel prices remain elevated despite the refinery’s comparatively lower pricing.
“How do prices rise by as much as 300 per cent when Dangote’s supply remains the cheapest and some marketers source directly from the refinery?” he queried.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) assured stakeholders that it would work with marketers to review pricing templates and ensure a balanced outcome.
Chief Executive of NMDPRA, Saidu Aliyu Mohammad, said: “We are going to discuss with our marketers and see a way out. We are also going to look at the template, the framework on which pricing is made, and see where we can come in so that we can have a smoother conclusion at the end of the day.
“We would not like to see a situation where the airlines would shut down. We are the regulator, and our business is to facilitate, and not to get anybody out of business.
“Since we want the airlines to run, we also want the marketers to continue doing their business.
“So, we have decided that within the next 48 hours to 72 hours, we will definitely discuss and come out with conclusions, and all Nigerians will hear about that.”
