KEY POINTS

• The Federal Government has asked fuel marketers to grant Nigerian airlines a 30-day credit window for jet fuel purchases.
• Aliko Dangote’s refinery is reaping record margins on jet fuel exports to Europe while domestic airlines pay over 7 million naira to fuel a single flight.
• Stakeholders agreed an indicative pricing band of 1,760 to 1,988 naira per liter in Lagos and 1,809 to 2,037 naira per liter in Abuja.

Aliko Dangote’s $20 billion refinery is raking in record margins on jet fuel exports to Europe just as Nigerian airlines warn they may have to ground flights at home. The Federal Government, scrambling to defuse the crisis, has now asked fuel marketers to grant operators a 30-day credit window for purchases.

The directive emerged after the Nigerian Midstream and Downstream Petroleum Regulatory Authority convened a series of high-level meetings, following an earlier session that Aviation Minister Festus Keyamo called on April 22 and 23, 2026.

What stakeholders agreed concerning the jet fuel crisis

Specifically, regulators, the Ministries of Aviation and Petroleum Resources, FAAN, NAMA, NCAA, airline operators and fuel marketers gathered in Abuja to hammer out interim measures. They agreed on a new indicative pricing band based on global oil dynamics and domestic costs.

“The indicative end-user price should range between N1,760 and N1,988 per litre in Lagos and N1,809 and N2,037 per litre in Abuja,” the executive summary said.

Furthermore, the committee proposed that NMDPRA work with FAAN and NCAA to trim airside fuel distributors. Additionally, the panel recommended including Aviation Turbine Kerosene under the Federal Government’s naira-for-crude initiative.

Inside Ibom Air’s 7.6 million naira flight

Meanwhile, Ibom Air laid out the financial pain in plain numbers. The Akwa Ibom-based carrier said it now spends about 7.6 million naira to fuel a single flight, more than triple the 2.1 million naira it paid in January.

“This is a more than 350 percent increase since the beginning of March, a space of just seven weeks. And our aircraft are some of the most fuel-efficient in the domestic market,” Ibom Air said.

The airline noted that competition and patriotism have prevented operators from raising fares to match. As a result, domestic carriers are absorbing the losses themselves and may cut capacity if relief does not land soon.

Dangote’s European windfall

While airlines bleed at home, Dangote Petroleum Refinery is reaping a windfall abroad. According to a Reuters report Monday, the 650,000-barrel-per-day plant is selling jet fuel into Europe at premium prices ahead of the peak summer travel season.

Devakumar Edwin, Dangote Group’s vice president, confirmed the export pattern. He said the refinery produces about 24 million liters of jet fuel daily, with the bulk shipping to Europe while the refinery also meets domestic demand of around 2.1 million liters per day.

Industry expert Alan Gelder of Wood Mackenzie said European refiners are earning roughly $15 per barrel on jet fuel. He estimated Dangote’s margins are more than double that figure, thanks to the plant’s scale, configuration and access advantages.

A deregulated market 

Specifically, Nigeria’s fully deregulated fuel market means prices follow global trends without subsidy cushions. However, Edwin said the refinery still relies heavily on imported crude from the United States, Brazil and other African countries, which limits its profit potential.

Notably, NNPC’s crude-for-loan obligations tie up about 400,000 barrels per day of Nigeria’s crude, leaving little for local refining. Domestic airlines also owe more than 9 billion naira to ground handlers, who have threatened to withdraw services Tuesday.