In a major economic intervention expected to trigger an immediate reduction in domestic airfares, the management of the Dangote Petroleum Refinery & Petrochemicals has officially announced a sharp reduction in the price of aviation fuel (Jet A1), cutting rates by ₦100 from ₦1,750 down to ₦1,650 per litre.
The strategic price slash forms part of a broader, structured corporate response aimed at mitigating the crippling operational overheads facing domestic airlines, which had previously threatened to grind Nigerian commercial aviation to a complete halt.
Beyond the price reduction, the mega-refinery announced the immediate rollout of a 30-day interest-free credit window for certified local marketers and airline operators—backed by bank guarantees (BG)—alongside a total operational transition from traditional dollar-denominated invoices to a fully domestic, naira-based pricing structure.
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The intervention addresses a prolonged crisis within the aviation ecosystem.
The Airline Operators of Nigeria (AON) had recently dispatched an urgent memo to the Major Energies Marketers Association of Nigeria (MEMAN), warning that Jet A1 costs had astronomically surged from ₦900 per litre in late February to an unsustainable ₦3,300 per litre by mid-April 2026.
AON cautioned that domestic carriers were running on severe financial deficits, making partial or total flight suspensions inevitable.
Reacting to the development, the Minister of Aviation and Aerospace Development, Festus Keyamo (SAN), who recently spearheaded high-level state mediations, noted that while Nigeria’s energy sector operates within a deregulated free-market framework, the public interest must be protected from volatile pricing shocks. Keyamo stated:
"Airline revenues were simply insufficient to cover the cost of fuel alone, which accounts for over 40% of airline running expenses. The federal government’s intervention has established a competitive pricing band while simultaneously approving debt discounts on outstanding administrative charges owed by domestic carriers to FAAN, NAMA, and the NCAA."
Aviation analysts project that Dangote’s intervention will offer immediate liquidity breathing room to local airlines.
By combining a stabilized, local-currency fuel supply with the Ministry of Aviation's ongoing tax-streamlining initiatives, the sector is well-positioned to avert operational disruptions, safe-guarding millions of downstream jobs linked to national transportation logistics.
#DangoteRefinery #AviationFuel #JetA1 #FestusKeyamo #AON #AirfaresNigeria #NairaPricing #NigerianAirlines
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