FG tells fuel marketers to sell on credit as jet fuel crisis hits airlines

• FG directed fuel marketers to offer airlines a 30-day credit window

• Jet fuel prices have surged, driving up airline operating costs

• Direct fuel sales aim to reduce middlemen and improve supply efficiency

• The move is seen as a short-term fix to prevent flight disruptions

The Federal Government of Nigeria has directed fuel marketers to sell aviation fuel on credit to airline operators, in a move aimed at easing the impact of a worsening jet fuel crisis on the country’s aviation sector.

The intervention, announced through the Nigerian Midstream and Downstream Petroleum Regulatory Authority(NMDPRA), requires marketers to provide airlines with a 30-day credit window and ensure direct supply of Jet A1 fuel to operators.

The directive comes as jet fuel prices continue to surge, placing significant financial strain on domestic airlines already grappling with rising operational costs and fluctuating passenger demand.

Industry stakeholders say the cost of aviation fuel has climbed sharply in recent months, in some cases exceeding ₦3,000 per litre, making it one of the biggest expenses for airline operators. The price spike has triggered concerns over possible flight disruptions, route cuts, and further increases in ticket fares.

Airlines in Nigeria typically pay upfront for fuel, a system that has become increasingly unsustainable amid the current pricing environment. The government’s credit arrangement is expected to ease immediate cash flow pressures, allowing operators to continue flying while deferring payment.

In addition to the credit facility, the move to mandate direct sales from marketers to airlines is designed to cut out intermediaries, improve supply efficiency, and potentially reduce additional costs within the distribution chain.

The Minister of Aviation and Aerospace Development, Festus Keyamo, has been engaging with industry players to find short-term solutions to stabilise the sector and prevent a shutdown of operations.

The crisis has raised broader concerns about the sustainability of Nigeria’s aviation industry, with experts warning that prolonged high fuel costs could force weaker airlines out of the market and reduce competition.

While the government’s intervention has been welcomed by some operators, analysts caution that it may only provide temporary relief. Questions remain about how marketers will manage delayed payments and whether the policy could distort the deregulated fuel market.

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The situation also highlights deeper structural challenges, including Nigeria’s reliance on imported aviation fuel and exposure to global oil price volatility.

As authorities continue discussions with airlines and fuel suppliers, the focus remains on preventing disruptions and stabilising ticket prices for passengers.