FG Caps Jet Fuel Price at ₦1,988 in Lagos as NMDPRA Steps Into Aviation Crisis

The Federal Government has moved directly into Nigeria’s aviation fuel crisis, with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announcing official maximum price caps for Jet A1 fuel supplied to airlines operating in the country.

Under the directive, the maximum price per litre has been set at ₦1,988 in Lagos and ₦2,037 in Abuja — a significant reduction from the rates some suppliers had reportedly been charging, with figures as high as ₦3,300 per litre circulating in industry circles before the regulator stepped in.

Aviation Minister Festus Keyamo has been pushing for government intervention since airlines began warning they could not sustain operations at prevailing fuel prices. The NMDPRA price cap is the clearest regulatory action taken so far, effectively placing a ceiling on what suppliers can charge and giving airlines a reference point to push back against price gouging.

Context: Airlines at Breaking Point

The fuel crisis has already forced real consequences on the sector. Air Peace reduced its Abuja-London service to three weekly flights until July 1, 2026, citing fuel supply constraints. Multiple other carriers have warned of delays and potential route suspensions if costs remain unsustainable.

Keyamo and Finance Minister Taiwo Oyedele had been in talks earlier this week on emergency measures to ease the burden on airlines. The NMDPRA caps appear to be the output of those discussions — a top-down price fix that the government hopes will stabilise the market and prevent further service disruptions.

Whether the caps will hold in practice depends on enforcement. Nigeria has a history of regulated prices being observed more in announcements than in reality. Airlines and industry watchers will be monitoring closely to see if the NMDPRA follows through, and whether supply at the capped rates actually materialises on the ground.

Sources: Leadership, ThisDay