FG Introduces 30-Day Credit for Airlines Amid Fuel Crisis

The Federal Government of Nigeria is set to offer a 30-day credit window for airlines to purchase jet A1 fuel as jet fuel prices continue to rise. This initiative aims to provide immediate financial relief to airlines struggling with severe liquidity issues caused by skyrocketing energy costs.

The decision follows a high-level stakeholder meeting convened by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) alongside the Minister of Aviation and Aerospace Development on April 22-23, 2026. The government plans to stabilize the market by setting a new indicative price band for aviation fuel, expected to sell between N1,760 and N1,988 per liter in Lagos and Abuja.

The intervention is crucial as domestic carriers, such as Ibom Air, have reported staggering increases in fuel costs, with a single flight costing over N2.1 million in January and approximately N7.6 million in April, marking a 350% increase. Additionally, airlines are facing operational challenges due to debts owed to ground handling companies, which threaten to withdraw services.