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Jet A1 Price Spike Leaves Airlines Pondering

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The Middle East crisis induced spike in the cost of aviation fuel has left Airline Operators in Nigeria pondering their next moves for survival.

It was gathered that airfares have maintained status in the domestic market, despite aviation fuel’s prices spike by 184 percent in the last two months.

Sources at different airlines, who according to The Punch, did not want their names in print, attributed the maintenance of status quo to the “pressure of competition” among local carriers.

ALSO READ: Dangote Refinery Gets More Crude Supply From NNPC Ltd

Aviation fuel, which was sold at N900 per litre in January, increased to N1,121 per litre as of 26 February 2026 and now sells for N2,557 per litre.

Aviation fuel is the highest consuming commodity of airlines’ finances, taking about 40 per cent of airlines’ resources. This is closely followed by aircraft maintenance.

Despite the spike in fuel prices and the financial burden on airlines, competition has been keeping the airlines in check against upping their ticket prices. Between January and March 30, the product has increased by 184 per cent; yet, airfares still sell for between N106,286 and N147,000 across major routes in the domestic market.

A search on the booking portal of Ibom Air, for instance, shows the Lagos-Abuja flight for April 4 goes for N114,600, while Uyo to Abuja on the same airline and date also sells for the same N114,500.

For United Nigeria Airlines’ portal, the Kano-Lagos flight from April 1 to April 7 sells for N142,500 for a one-way ticket, while the Lagos-Port Harcourt flight for the same date goes for the same N142,500 on the airline’s portal.

Besides, the Lagos-Abuja flight for April 4 on Aero Contractors goes for N106,286, while the Asaba-Abuja flight on the same airline sells for N102,179.

However, Air Peace is the most expensive on the local scene, with Lagos to Abuja air tickets for April 3 bookings selling for N147,000, while the return ticket – Abuja to Lagos – also goes for the same rate.

The airline source said that instead of the fares going up, the operators had kept them at the same price as two months ago, yet they were struggling to remain in business.

The source also attributed the situation to the number of scheduled indigenous operators, in spite of low passenger traffic.

As of the time of filing this report, there are about 15 scheduled operators, while another two airlines in February and March, Enugu Air and Binani Airlines, respectively, secured Air Operators’ Certificates from the Nigeria Civil Aviation Authority, which would enable them to operate.

Nigeria’s passenger traffic has been on a steady decline in recent years. The industry recorded 15.6 million passenger movements on domestic and international routes in 2024, 15.8 million in 2023 and 16.2 million in 2022.

One of the sources said, “It’s the pressure of competition. Instead of going up, the pressure on pricing is downwards because of the number of players and the pricing they have entered the market with. It’s simply competitive pressure that keeps airfares stagnant.”

He, however, said that his airline was reviewing the current situation and would come up with a position in the coming weeks.

Data obtained from major fuel marketers in Nigeria indicated that aviation fuel currently goes for N2,557 per litre at Sokoto Airport, making it the airport with the most expensive sales of the product in Nigeria.

This is followed by Kano, which sells the product at N2,554 per litre, while both Port Harcourt and Asaba report rates of N2,543 per litre.

Besides, the product goes for N2,538 per litre at the Nnamdi Azikiwe International Airport, Abuja; Enugu airport, N2,535 per litre; and Warri airport, N2,530 per litre.

For Anambra airport, the product goes for N2,529 per litre; for Asaba airport, N2,528 per litre, with Lagos recording the cheapest rate of aviation fuel at N2,500 per litre.

While operators refused to comment on the development despite calls and text messages, industry experts expressed their views. Aviation analyst Olumide Ohunayo warned that even if airlines make fare adjustments, they may not be sufficient to offset the mounting losses triggered by the sharp rise in aviation fuel prices, describing the situation as unsustainable for operators.

Ohunayo, who spoke amid growing concerns over escalating ticket costs, said airlines are caught in a difficult position where even significant fare increases may still fall short of covering operational expenses.

He said, “No matter the increase that they can make now, they may not be able to recoup their losses as a result of the fuel increase. When you compare the prices with other nations, you will discover that the fuel price in Nigeria is on the high side.”

He highlighted the rapid spike in fuel prices within a short period, noting that the trend has placed enormous pressure on airline operations.

The industry expert expressed concern that, unlike other countries, Nigeria has yet to implement measures to ease the burden on both operators and consumers.

He said, “It was about N1,000 in January, N1,500 in February, and it has now moved to over N2,500 in March. And this is the same country where Dangote is exporting this same fuel to Europe, and you will then begin to imagine what incentives are given to cushion this development.

“Other countries are bringing in their reserves to reduce the effects on the citizenry, and they have also reduced their taxes, in some cases up to 50 per cent. An example of that is Australia.”

Ohunayo questioned the response of the Nigerian government, urging authorities to act swiftly to prevent further strain on the aviation sector.

He called for targeted interventions, including temporary tax reliefs for airlines, to help cushion the impact of rising costs, saying, “What is the Nigerian government doing to reduce the effect of this on Nigerians? So, I feel that no matter the eventual increase from airline operators, it still cannot be enough.

“There must be a way to support operators during this period, maybe by reducing their taxes for three months. There must be a way for the government to come in. Why are the operators the ones bearing the highest cost?”

A retired pilot, Muhammad Badamosi, has said airlines may be reluctant to further increase airfares despite rising operational costs, citing fears of losing passengers to road transport amid the current economic realities.

He said, “Yes, I think it’s the fear of losing passengers because Nigerians currently do not have money, and many may have to resort to road travel. Yes, we understand that that is taking a toll on the operators, but it is what it is. That is the condition Nigeria currently finds itself in.”

Badamosi explained that while airlines are under pressure to adjust fares in response to rising aviation fuel costs, they are also constrained by the risk of pricing themselves out of the market.

According to him, the situation has created a difficult balance for operators, who must navigate between sustaining their businesses and retaining customer patronage.

“For instance, I used to visit Kaduna once every two months, but now I have cut it down to three times a year. My frequency used to be six times a year; now I go there three times a year.”

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Stakeholder Commends NMDPRA for Averting Aviation Fuel Crisis

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Subsidy Removal: NMDPRA Assures Smooth Fuel Supply

An oil sector advocacy group has commended the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), for stabilising the aviation fuel market, noting that its recent intervention helped ease tensions across the aviation sector and averted potential disruptions to flight operations.

This was detailed in a statement on Tuesday under the signature of the centre’s Executive Director, Tunde Adeyemi.
It averred that the regulator’s clarification on fuel availability and pricing came at a critical time, when uncertainty over Jet A1 costs had heightened anxiety among airline operators and other stakeholders.

Adeyemi noted that confirmation of over 70 days’ aviation fuel sufficiency reflects a strong supply position and underscores the resilience of Nigeria’s downstream petroleum framework.

Adeyemi said the regulator’s data-driven disclosure helped counter widespread speculation, including claims of a potential spike in aviation fuel prices that had raised fears of flight disruptions and higher airfares.

“The timely intervention by the Authority provided much-needed clarity and helped calm frayed nerves within the aviation ecosystem. At a time when misinformation could have escalated into a crisis, the regulator chose transparency and facts, which is commendable,” he said.

ALSO READ: NUPRC Assures Refiners of Crude Supply, Urges CORAN to Bid for Oil Blocks

He added that aviation fuel remains a major cost driver for airlines in Nigeria, making stability in supply and pricing critical to the sector’s sustainability.

According to him, the Authority’s emphasis on the deregulated nature of the Jet A1 market is key to shaping realistic expectations, as pricing is influenced by global oil trends, foreign exchange fluctuations, and logistics costs.

“It is important for stakeholders to understand that aviation fuel pricing is market-driven. What the regulator has done is provide clarity that supports informed decision-making,” he said.

The group also highlighted the growing role of domestic refining in moderating fuel prices, noting that locally refined aviation fuel is being sold slightly below international benchmarks — an indication of improving local capacity.

It urged stakeholders across the aviation fuel value chain to avoid spreading unverified claims capable of distorting market realities or undermining confidence in the sector.

“Responsible engagement is critical. All parties must work together to sustain stability and ensure that recent gains are not reversed by panic or misinformation,” Adeyemi added.

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NNPC Ltd Delivers over 1bn Barrels to Dangote in April

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There are indications from the trading arm of the Nigerian National Petroleum Company Limited (NNPC Ltd) that crude supplies to the Dangote Oil and Gas Company Limited (DOGC) in April 2026, increased to more than 1.03 million metric tonnes, equivalent to about 6.8 million barrels or over 1.08 billion litres.

An analysis of tanker vessel movements obtained by The PUNCH on Tuesday shows that the deliveries were executed through eight crude cargoes handled by NNPC Trading, reinforcing the state oil firm’s role as a major feedstock supplier to the 650,000 barrels-per-day Dangote refinery.

The shipments, sourced from key Nigerian crude streams including Anyala, Bonga, Odudu, Forcados, Qua Iboe, and Utapate, were routed through the refinery’s Single Point Mooring systems, SPM-C1 and SPM-C2.

The document shows that out of the eight cargoes, five have been fully discharged, while three others are still awaiting berthing or completion, indicating a steady pipeline of crude inflows into the refinery.

ALSO READ: AKK: NNPC’s Continued Drive for Nigeria’s Development

This development comes amid the refinery’s continued complaints of supply inadequacies, with a total requirement of 19 cargoes monthly, and a recent report that the country imported 55.39 million barrels in January and February 2026.

A breakdown of the deliveries showed that Sonangol Kalandula initiated the supply chain, delivering 123,000 metric tonnes of crude from Anyala. The vessel arrived on April 5, berthed on April 8, and sailed on April 9.

This was followed by Advantage Spring, which supplied 128,190 metric tonnes from Bonga, arriving on April 11 and completing discharge by April 13.

Similarly, a vessel code-named Barbarosa delivered 125,000 metric tonnes from Odudu, while Sonangol Njinga Mban transported 129,089 metric tonnes from Bonga.

Another completed shipment, handled by Nordic Tellus, brought in 139,066 metric tonnes from Forcados, completing discharge on April 17.

However, three additional cargoes remain in progress. Advantage Sun, carrying 142,327 metric tonnes from Bonga, has arrived but is yet to berth. Also pending are Advantage Spring from Utapate with 120,189 metric tonnes, and Sonangol Kalandula from Qua Iboe with 126,471 metric tonnes.

In total, the NNPC Trading cargoes account for 1,033,332 metric tonnes of crude, underscoring what industry analysts describe as a “strong and sustained supply commitment” to the Dangote refinery.

Further findings show that, beyond crude deliveries, the Dangote refinery also received multiple shipments of refined products and blending components from international markets during the period.

Among them, Seaways Lonsdale delivered 37,400 metric tonnes of blendstock gasoline from Immingham, United Kingdom, handled by Vitol, between April 18 and 19.

Another vessel, Augenstern, supplied 37,125 metric tonnes of Premium Motor Spirit from Lavera, France, discharging between April 8 and 9.
From Norway, Emma Grace brought in 37,496 metric tonnes of PMS from Mongstad, while LVM Aaron delivered 36,323 metric tonnes from Lome, Togo.

Similarly, Egret discharged 35,498 metric tonnes of naphtha from Rotterdam between April 16 and 18, providing critical feedstock for gasoline blending.

A pending shipment, Mont Blanc I, carrying 36,877 metric tonnes of blendstock gasoline from Antwerp, Belgium, is yet to berth, while Aesop is expected to deliver 130,000 metric tonnes of residue catalytic oil from Singapore later in April.

In addition to NNPC Trading volumes, other crude cargoes from international and domestic traders also supported refinery operations.

Notably, Yasa Hercules delivered 273,287 metric tonnes of crude from Corpus Christi, United States, while Front Orkla brought in 264,889 metric tonnes from Ingleside, US.

A major cargo, Navig8 Passion, supplied 496,330 metric tonnes of crude from Cameroon, highlighting regional supply integration.

Domestic contributions included Harmonic, which delivered nearly 993,240 barrels from Ugo Ocha, and Aura M, which supplied 1 million barrels from Escravos, alongside an additional 651,331 barrels of cargo from Anyala.

Operational data indicate that most vessels berthed within one to two days of arrival and departed shortly after discharge, suggesting improved efficiency at the refinery’s offshore terminals.

The Dangote refinery, located in Lekki, Lagos, is Africa’s largest single-train refinery, with a nameplate capacity of 650,000 barrels per day.

The facility is expected to significantly reduce Nigeria’s dependence on imported petroleum products by refining domestic crude and supplying petrol, diesel, aviation fuel, and other derivatives to the local market.

NNPC Limited, through its trading arm, has remained a central player in supplying crude to the refinery under evolving commercial arrangements, amid ongoing reforms in Nigeria’s downstream oil sector.

Earlier this month, Africa’s richest man and President of the Dangote Group, Aliko Dangote, revealed in a report by Bloomberg that the refinery received 10 cargoes of crude oil from the state-owned oil firm in March, compared to an average of about five cargoes monthly since late 2024.

Dangote said the shipments included six cargoes paid for in naira and four in dollars, under the crude supply arrangement between the refinery and the NNPC.

“Nigeria doubled crude supply to Dangote Refinery in March as Africa’s top oil producer moved to shore up fuel availability after the Iran war disrupted Middle East shipments. Last month, they gave us six cargoes with payments in naira and four cargoes with payments in dollars,” he stated.

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Dangote Champions Infrastructure, Job Creation as Catalysts for Africa’s Economic Growth at IMF/World Bank Meetings

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Africa’s leading industrialist and President and Chief Executive of the Dangote Group, Aliko Dangote, has reaffirmed the central role of infrastructure development, job creation, and private sector investment in accelerating Africa’s economic transformation.

Dangote made this assertion during a series of high-level engagements with global financial leaders on the sidelines of the recently concluded International Monetary Fund (IMF) and World Bank Spring Meetings in Washington, D.C. The meetings formed part of his ongoing efforts to mobilise investment flows and deepen strategic partnerships within Nigeria’s energy and industrial sectors.

During a keynote address at the World Bank’s Water Forward event, Dangote emphasised the urgency of scaling private sector participation to reposition water systems as enablers of industrialisation and employment across developing economies. He noted that infrastructure, particularly effective and sustainable water management, remains foundational to inclusive growth and long-term economic resilience.

“Africa’s growth story will be defined by our ability to invest in infrastructure that supports industry, creates jobs, and unlocks productivity across the continent,” Dangote said. “When the private sector is fully engaged, especially in critical areas like water and energy, it becomes a powerful engine for inclusive and sustainable development,” he said.

ALSO READ: Kogi Chamber Honours Dangote Cement over Impactful Social Performance

As part of his engagements, Dangote also held strategic discussions with senior global financial leaders, including World Bank President Ajay Banga, focusing on accelerating capital inflows into Africa’s industrial sector. He stressed that rapid industrialisation is vital to strengthening economic resilience, promoting diversification, and reducing the continent’s exposure to external shocks.

Dangote further outlined the Group’s Vision 2030 strategy, which targets the significant expansion of operations across the Dangote Refinery, Fertiliser and Petrochemical Complex, and other business units, with the goal of achieving annual revenues of US$100 billion. According to him, the strategy reinforces the Group’s long-standing commitment to Africa-led industrial growth and sustainable development.

Reiterating his position, Dangote underscored that robust private sector participation — backed by reliable infrastructure — is essential to unlocking the economic value of water resources and advancing inclusive development across Africa.

The World Bank event attracted a distinguished audience, including heads of government, the United Nations Secretary-General, leaders of European development institutions, and representatives of multilateral development partners.

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