The Federal Government plans to include Aviation Turbine Kerosene (ATK) in the Naira-for-Crude initiative as part of an emergency response to the ongoing aviation fuel crisis.
It was one of the recommendations made by a technical committee convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), following a series of high-level stakeholder meetings held last week to address the aviation fuel price hike that is gravely impacting the operations of domestic airlines in the country.
According to an Executive Summary of the engagements, released by the NMDPRA, and obtained by our correspondent on Monday, the Minister of Aviation and Aerospace Development, Festus Keyamo, convened a stakeholders’ meeting on April 22 and 23 2026, to address the challenges of supply and pricing of Aviation Fuel in the country.
The meeting, which was attended by the Ministry of Aviation, Ministry of Petroleum Resources, NMDPRA, Federal Airports Authority of Nigeria (FAAN), National Airspace Management Agency (NAMA), Nigeria Civil Aviation Authority (NCAA), airline operators and aviation fuel marketers, resolved that a technical committee should be constituted to deliberate and make recommendations to address the challenges.
The Technical Committee convened by the NMDPRA on 24th April 2026, recommended that the downstream regulator should push for inclusion of ATK, also known as Jet A1 fuel, in the Naira-for-Crude initiative.
“NMDPRA to recommend the inclusion of ATK Under the Naira for crude initiative,” the Technical Committee recommended.
Why is this Intervention Necessary?
The Nigerian aviation sector has been under severe financial strain due to the skyrocketing cost of Jet A1 fuel.
Airline Operators of Nigeria (AON), while lamenting the impact of the high cost of aviation fuel on their operations, said the price has gone up by about 300 per cent from ₦900 in January to more than ₦3,000 per litre currently.
Industry data indicate that the cost of fueling a single flight has surged by over 350 per cent in early 2026, rising from approximately ₦2.1 million in January to about ₦7.6 million in April. This spike threatened operational stability and prompted the government to act as airline operators threatened to shut down operations if nothing was done to address the situation.
Key Measures to Tackle the Crisis
In response, the technical committee convened by the NMDPRA recommended a multi-pronged strategy to bring immediate relief to airlines and ensure long-term stability.
The inclusion of ATK in the Naira-for-Crude Deal is considered the most significant long-term recommendation.
The Naira-for-crude policy allows local refineries to purchase crude oil in Naira, which is expected to reduce the industry’s exposure to foreign exchange volatility and stabilise the final price of refined petroleum products, including aviation fuel.
30-Day Credit Window for Airlines
To ease the immediate financial burden, petroleum marketers have been asked to grant airline operators a 30-day credit facility for fuel purchases. This will allow airlines to receive supplies and pay after 30 days, providing a crucial buffer for their cash flow.
New Indicative Price Band
The NMDPRA said that based on current market fundamentals, the indicative end-user price should range between ₦1,760 – ₦I,988 per litre in Lagos, and ₦1,809 – ₦2,037 per litre in Abuja. “The indicative prices are based on Platts average prices for the period 17th -23rd April 2026,” it stated.
It noted, however, that products purchased outside this window may be higher due to high volatility in current prices precipitated by the U.S.-Iran war and varying operational costs by operators.
Direct Supply to Airlines
The committee also recommended that marketers should sell fuel directly to airline operators, bypassing intermediaries. This move is believed to improve efficiency and reduce inflated costs in the supply chain.
To effectively implement this, the committee urged NMDPRA to work with FAAN and NCAA to “validate airside distributors with infrastructure to trim the number of airside operators based on agreed criteria.”
“NMDPRA should direct marketers to sell directly to the Airline operators within this period.
“To ensure price stability, NMDPRA should engage DPRP to adjust the premium on Platts and cost variation element that was recently increased by the Refinery.”
The committee also recommended that the Ministry of Aviation should facilitate a consultative meeting between oil marketers and airline operators to resolve outstanding debts.
Domestic airline operators have continued to lament losses since aviation fuel price jumped without commensurate increase in airfares.
READ ALSO:
Jet Fuel Crisis: Why Nigeria’s 30% Airline Debt Relief Isn’t Enough
Aviation Fuel Price: Keyamo Urges Airlines not to Increase Airfares, Suspend Flights
Speaking after the stakeholders’ meeting on Thursday, last week, Chairman and CEO of Air Peace, Allen Onyema, said if nothing urgent is done within seven days, many domestic airlines may shut down as they can’t continue borrowing money from banks at high interest rate to find fuel while other operational demands remain unattended to.
Onyema, who is the vice president of AON, called for a one-on-one meeting with President Bola Tinubu to have robust discussions on what would benefit the industry.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in Mass Communication. He can be reached via @VICTOREZEJA on X