LA SUITE APRÈS LA PUBLICITÉ

The Federal Government of Nigeria has moved to stabilize the skyrocketing price of Jet A1 fuel, a development sparked by a severe crisis in the aviation sector.

Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, alongside the Nigerian Midstream and Downstream Petroleum Regulatory Authority – NMDPRA, recently convened high-level meetings to broker a truce between airline operators and fuel marketers.

This intervention follows reports that domestic airlines are struggling to survive as fuel costs have more than tripled in recent months, a situation placing the entire industry at a breaking point.

Technical committees have established indicative price ranges for aviation fuel to provide a benchmark for the industry. For the period in late April 2026, prices were set between N1,760 – N1,988 per litre in Lagos and N1,809 – N2,037 per litre in Abuja. These benchmarks are designed to curb the current volatility, which officials attribute to global tensions—specifically the U.S.-Iran conflict—and varying operational costs.

Additionally, the NMDPRA has been assigned with encouraging marketers to sell directly to airlines and exploring the inclusion of aviation fuel under the “Naira for Crude” initiative to foster price stability.

The severity of the situation was highlighted by Ibom Air, which revealed that the cost of fueling a single flight jumped from N2.1 million in January to N7.6 million by late April. This represents a staggering 350% increase in just seven weeks.

Despite these soaring costs, the airline noted that competitive pressures and a sense of patriotism have kept ticket prices from rising at the same rate. However, the management warned that if the trend persists, airlines may be forced to reduce flight capacities or halt operations entirely, as the current model is becoming financially unsustainable.

While the government seeks to protect the sector, some economic analysts express concern that price controls could lead to market distortions. Critics argue that intervening in a deregulated environment might inadvertently cause product scarcity, fuel supply disruptions, or the emergence of a black market.

There are fears that rigid price caps could lead to a “potential subsidy regime” by another name, which might ultimately prove counterproductive in a liberalized market. These experts suggest that market forces should ideally determine prices to ensure long-term supply chain integrity.

Simultaneously, the Trade Union Congress – TUC has called for broader government intervention to ease the economic burden on the Nigerian workforce. The union is demanding a 50% tax rebate for workers and manufacturing companies to cushion the effects of rising energy costs and inflation.

The TUC equally proposed that the government use excess crude revenue to subsidize the crude oil supplied to local refineries, such as the Dangote Refinery. They argue this would lower the cost of refined products like petrol and diesel without returning to the previously “discredited” subsidy system.

Beyond fuel, the TUC’s concerns extend to the rising cost of electricity and general insecurity, which have collectively crippled productivity and food security. The union criticized the current electricity tariff bands, where consumers pay premium rates for unreliable power.

As the Federal Government works to stabilize the aviation sector, it faces increasing pressure from organized labor to address the holistic “hardship” imposed on citizens, emphasizing that any fiscal policy must be transparent, service-based, and accountable to the people.