Air transportation is essential for Nigeria’s economy, contributing N59 billion to GDP and supporting 159,000 jobs. However, the Nigerian aviation sector faces recurring challenges with jet fuel scarcity, impacting flight schedules, costs, and the sustainability of the industry. Importation difficulties, licensing delays, and shallow waterways complicate the fuel supply chain. Jet fuel accounts for over 30% of airline operational costs, and its scarcity has led to delays and cancellations. Solutions like local fuel production, improved infrastructure, and policy reforms are critical to stabilizing the sector.
Air transportation plays a vital role in global logistics and the Nigerian economy, with the aviation sector contributing N59 billion to the nation’s GDP and supporting over 159,000 jobs. Nigeria’s aviation industry, despite its growth, faces a persistent challenge: jet fuel scarcity. The country’s three refineries do not produce jet fuel, forcing total reliance on imports. As a result, logistical challenges, import delays, and exchange rate fluctuations often create fuel shortages, which disrupt flight operations and push costs higher for airlines and passengers.
Jet fuel scarcity has far-reaching consequences for Nigeria’s aviation industry. As airlines struggle to maintain adequate fuel supplies, flight delays, cancellations, and rescheduling become common. The aviation sector is sensitive to fuel prices, with jet fuel accounting for over 30% of an airline’s operating expenses. Rising fuel costs and frequent shortages have rendered some airlines insolvent, impacting business operations, consumer confidence, and the sector’s overall profitability.
Fuel supply issues stem from several factors, including inadequate importation infrastructure, regulatory delays in obtaining fuel import licenses, and insufficient coordination between fuel importers. Shallow waterways at Apapa in Lagos force large fuel tankers to remain offshore, requiring smaller vessels to ferry the fuel to depots, increasing operational costs and supply chain delays.
To address these challenges, several recommendations have been proposed. The Federal Airports Authority of Nigeria (FAAN) should improve airport management and consider the distinct needs of different regions. Encouraging local production of jet fuel through refinery upgrades and granting refinery licenses to investors can reduce dependence on imports. Additionally, repairing or constructing pipelines for direct fuel delivery to airports can streamline logistics, reduce Apapa traffic congestion, and cut costs.
Furthermore, the establishment of a Maintenance, Repair, and Overhaul (MRO) facility in Nigeria can reduce the high cost of overseas aircraft maintenance. Jet fuel hedging—where airlines lock in fuel prices ahead of time—can also help stabilize costs and mitigate the effects of price volatility.
The Nigerian government must develop policies that promote a reliable supply of jet fuel, encourage local investment in fuel production, and enhance infrastructure to sustain aviation sector growth. Ensuring consistent fuel availability will support economic sustainability, reduce disruptions, and improve profitability for airlines while enhancing passengers’ travel experience.
With its critical importance to business, trade, and tourism, air transportation remains a vital revenue generator for Nigeria. Addressing jet fuel scarcity and improving operational efficiency will be essential for securing the future of the aviation industry and the broader economy.
