A federal government technical committee has recommended the inclusion of aviation fuel, also known as Jet A1, in the naira-for-crude initiative as part of efforts to stabilise supply and reduce soaring costs in Nigeria’s aviation sector.
The recommendation followed a high-level meeting convened by the Minister of Aviation and Aerospace Development, Festus Keyamo, on April 22 and 23 to address persistent challenges surrounding the pricing and availability of aviation fuel.
The meeting brought together key stakeholders, including representatives from the aviation and petroleum ministries, regulators, airline operators, and fuel marketers.
In a statement issued after a follow-up session on April 24, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said the committee proposed that aviation turbine kerosene (ATK) be integrated into the naira-for-crude framework.
The move comes amid rising concerns from operators. Earlier in April, the Airline Operators of Nigeria (AON) threatened to suspend flights over escalating fuel prices, which reportedly surged from about ₦900 per litre in late February to as high as ₦3,300 per litre.
To cushion the impact, President Bola Tinubu approved a 30 per cent discount on debts owed by domestic airlines to aviation agencies.
Beyond the naira-for-crude proposal, the committee recommended an indicative price range for aviation fuel to improve predictability. It suggested prices of between ₦1,760 and ₦1,988 per litre in Lagos, and ₦1,809 to ₦2,037 per litre in Abuja, based on recent global benchmarks.
The panel also urged regulators to direct fuel marketers to sell directly to airline operators within the pricing window and called for adjustments to pricing components to ensure stability.
Other recommendations include reducing the number of airside fuel distributors through stricter validation by relevant authorities, facilitating dialogue between marketers and airlines to resolve outstanding debts, and introducing a 30-day credit window for fuel purchases.
The naira-for-crude policy, approved by the Federal Executive Council in July 2024, mandates the Nigerian National Petroleum Company Limited (NNPC Limited) to sell crude oil to domestic refineries in naira. The initiative officially commenced on October 1, 2024.
The latest proposal signals a broader effort by the government to extend the benefits of the policy to the aviation industry and ease operational pressures on local airlines.