Dangote Petroleum Refinery & Petrochemicals on Monday reduced the price of aviation fuel (Jet A1) by N100 from N1,750 to N1, 650 per litre as part of continuous efforts to ease cost pressures on airlines.
The refinery also reassured on uninterrupted fuel supply across the country.
Under a Federal Government-packaged intervention programme, Dangote Refinery is also providing a 30-day interest-free credit facility backed by bank guarantees (BG) for marketers and airline operators as well as a shift from a dollar-denominated pricing structure to a naira-based model.
The interventions come amid growing concerns over the rising operational costs faced by domestic carriers, with aviation fuel accounting for a significant portion of airline expenses.
The price reduction by Dangote Refinery is expected to bring relief to airline operators as it will lower fuel procurement costs, improving operational stability and supporting efforts to moderate airfares.
Prior to yesterday’s price reduction, industry stakeholders have repeatedly warned that the escalating Jet A1 prices were placing severe financial strain on operators and threatening the sustainability of flight operations.
Following alarms by the Airline Operators of Nigeria (AON), the Federal Government had last month intervened in the pricing situation convening strategic meetings with all parties in the situation.
The meeting was led by Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, who assured that the federal government’s commitment to maintaining a stable and balanced aviation market. He noted that while Nigeria operates a free-market system, market forces must not be allowed to undermine public interest or disrupt critical national services.
As part of the intervention Nigeria’s Minister of Aviation, Festus Keyamo, a proposed pricing band set rates at N1,760–N1,988 per litre in Lagos and N1,809–N2,037 per litre in Abuja.
Government also approved significant debt discounts on outstanding debts owed by domestic airlines to aviation agencies like the Federal Airports Authority of Nigeria (FAAN); Nigerian Airspace Management Agency (NAMA), and the Nigerian Civil Aviation Authority (NCAA).
The regulatory authorities also directed marketers to offer a 30-day credit facility to airlines to ease immediate financial pressure, while also establishing a special ad-hoc committee to review and streamline multiple taxes and levies embedded in domestic airfares.
AON had warned that airlines across the country may suspend operations over what it describes as an “astronomical and unsustainable” rise in the price of Jet A1 fuel.
Accordingly, the AON also listed the difficult choices facing the industry arising from the Jet A1 pricing to include raising ticket prices to reflect fuel costs, which could lead to low passenger turnout, while suspending operations entirely would have far-reaching consequences. They had also warned that a shutdown would impact financial institutions, disrupt millions of livelihoods, and potentially worsen insecurity across the country.
The Association had in a letter addressed to the Executive Secretary of the Major Energies Marketers Association of Nigeria (MEMAN), Clement Isong, said the cost of aviation fuel has surged from N900 per litre as of February 28 to N3,300 per litre as of April 14, 2026.
According to the AON, airlines had continued to absorb the rising costs out of “patriotism and in the spirit of service to the nation,” but they warned that the burden is no longer manageable.
“Airline revenues are insufficient to cover the cost of fuel alone,” the letter stated, adding that the situation has deteriorated to the point where continued operations are no longer viable.
The group regretted that the actions of fuel marketers are “decimating the aviation industry” and pose broader risks to Nigeria’s economy, safety, and national security.
“Aviation remains a sector of strategic national importance,” the letter stressed, cautioning that the current pricing regime is “unhealthy and detrimental to national wellbeing,” the AON had said in its letter to MEMAN.
