Ken Okeke
Nigeria has reversed its decision to cap jet fuel prices, with the Downstream Petroleum Regulatory Authority (NMDPRA) announcing Monday that it was scrapping a price ceiling introduced in late April.
The Agency said Nigeria’s aviation fuel market is fully deregulated and that prices should be determined by market forces. Imposing a cap would have contradicted the government’s downstream petroleum deregulation policy and risked creating artificial shortages and black markets, according to ThisDay Live, citing industry sources.
The reversal comes after jet fuel prices surged from 900 naira ($0.65) per liter in February 2026 to 3,300 naira ($2.40) in mid-April, a 266 per liter increase in less than three months, according to the Airlines Operators of Nigeria (AON).
A supply shortage has also disrupted crew rotations and flight schedules. The National Association of Aircraft Pilots and Engineers (NAAPE) warned that the shortage is pushing crews beyond regulatory duty-time limits, increasing fatigue and reducing safety margins.
In response, President Bola Tinubu approved a 30% reduction in airlines’ debts to aviation agencies in late April. He also instructed fuel suppliers, airlines and regulators to agree on a fair price within 72 hours. The NMDPRA subsequently introduced indicative price ranges of 1,760 to 1,988 naira ($1.29 to $1.46) per liter in Lagos and 1,809 to 2,037 naira ($1.32 to $1.49) in Abuja.
The jet fuel crisis has highlighted the structural fragility of a sector that nonetheless carries significant economic weight. Nigeria’s domestic market transported 10.5 million passengers in 2025, making it one of the continent’s largest aviation markets, according to data from ePlane AI.
Airlines in the market pay most operating costs — including maintenance, aircraft leasing and fuel — in foreign currency, amid the naira’s persistent depreciation. The Dangote refinery, which according to Reuters now supplies most of Nigeria’s jet fuel, has failed to stabilize prices.
One proposal under consideration is to include jet fuel in the naira-for-crude scheme, which allows refiners to purchase Nigerian crude oil in naira instead of dollars, reducing their exposure to foreign exchange pressures and potentially lowering refined fuel costs.
The measure was recommended by a government technical committee but has yet to receive official approval. Its implementation would require an agreement among the government, oil companies, refiners and airlines.
Without setting a new deadline or announcing replacement measures, the regulator said it would communicate future decisions regarding the deregulated market.