Nigeria Projects Aviation Fuel Prices Between N1,760–N2,037/Litre While Proposing 30‑Day Credit to Ease Airline Debt

Nigeria's government projects aviation fuel prices will range from N1,760 to N2,037 per litre. A key recommendation includes a 30-day credit term for airlines to mitigate financial pressures.

Nigeria's aviation sector faces persistent challenges with aviation fuel supply and pricing, impacting airline operations. Recent government engagements aim to stabilize these critical factors and address mounting airline debt.

The Minister of Aviation and Airspace Management convened a high-level meeting on April 22-23, 2026. This gathering included essential stakeholders from aviation and petroleum sectors, addressing market volatility.

Following these discussions, the Nigerian government projects aviation fuel, known as Aviation Turbine Kerosene (ATK), will cost between N1,760 and N2,037 per litre. This projection accounts for regional variations, with prices ranging from N1,760 to N1,988 per litre in Lagos and N1,809 to N2,037 per litre in Abuja.

This price forecast emerged from a technical committee's findings, which based its benchmarks on Platts average rates recorded from April 17 to 23, 2026. Market volatility, including geopolitical tensions and varying operational costs, may cause prices to fluctuate outside this range.

To ease financial strain on airlines, the committee advised implementing a 30-day credit term for fuel purchases. This measure seeks to provide operators with a crucial buffer against immediate payment demands.

The proposed credit window aims to mitigate the sector's significant debt crisis, allowing airlines more flexibility in managing their operational costs. This move directly addresses a major financial bottleneck for carriers.

Further recommendations from the committee include directing marketers to sell aviation fuel directly to airline operators and reviewing pricing components, such as premium adjustments. Regulators will also assess new cost variations introduced by refineries to ensure price stability.

Improved collaboration among the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Federal Airports Authority of Nigeria (FAAN), and Nigerian Civil Aviation Authority (NCAA) is also planned. This collaboration aims to streamline airside operations and validate distributors with adequate infrastructure.

Government also considers including aviation fuel under its naira-for-crude initiative, a broader effort to secure supply and stabilize pricing. Resolving outstanding financial obligations between oil marketers and airline operators remains a priority.

The aviation sector will now watch closely to see how these projections and recommendations translate into stable supply, predictable pricing, and improved financial health for airlines.