Airlines Get 30-Day Credit Window for Fuel Payments

The Federal Government has moved to stabilise Nigeria’s aviation sector by capping jet fuel prices and granting airlines a 30-day credit window, following concerns over rising operating costs and potential flight disruptions.

The intervention, outlined in a document by the Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), came after emergency talks between regulators, fuel marketers, and airline operators.

Jet fuel prices will now be guided within capped ranges: ₦1,760–₦1,988 per litre in Lagos and ₦1,809–₦2,037 per litre in Abuja. Airlines will have 30 days to settle payments for supplies.

Regulators directed marketers and airlines to agree on “fair” fuel prices to avoid disruption, while a technical committee recommended direct sales within the benchmark range to improve transparency.

The move follows warnings from operators that fuel costs had surged by over 270%, forcing airlines to raise fares and threatening capacity cuts. Global tensions, particularly disruptions around the Strait of Hormuz, have worsened the situation by pushing up international benchmarks.

President Bola Tinubu had earlier approved a 30% debt relief for airlines, part of wider efforts to ease cost pressures and avert an industry crisis.

Government is also considering including jet fuel in Nigeria’s naira-for-crude initiative to reduce foreign exchange exposure, while engaging the Dangote Refinery on pricing premiums.

Officials say the measures are part of broader efforts to contain costs in an industry already burdened by high taxes, FX pressures, and rising fuel expenses.