•TUC demands urgent FG’s intervention to drive down energy cost

•Seeks 50% tax rebate for workers

Onyebuchi Ezigbo in Abuja, Chinedu Eze in Lagos and Okon Bassey in Uyo

The federal government moved yesterday stabilise the prices of Jet fuel to save airlines operating in the aviation sector. But this has triggered concerns within Nigeria’s aviation and downstream petroleum sectors raising fears that the move could trigger market distortions. Instead some analysts believe the sector should be allowed to operate on the basis of market forces.

The development comes as the Minister of Aviation and Aerospace Development, Festus Keyamo, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) have stepped into the ongoing crisis in the sector, in a bid to broker a truce among key players.

THISDAY learnt that while the government’s intention may be to stabilise fares and shield airlines from volatile fuel costs, price controls in a deregulated environment could have unintended consequences, including product scarcity and supply chain disruptions.

Sources who preferred to remain anonymous agreed that such interventions in the downstream sector to cap aviation fuel prices may further lead to black-market activities without a market-aligned framework, leading to safety issues in the sector.

They believe market forces should be allowed to prevail in the sector, otherwise we may be looking at another potential subsidy regime in the sector. most airlines just can’t buy Jet fuel at the current market determined prices and at current cost of ticket.

Besides, they argued that it may further result in scarcity, flight disruptions, and broader economic consequences, urging the government to tread cautiously and warning that while price moderation is desirable, rigid controls could ultimately prove counterproductive in a liberalised market.

However, the Minister of Aviation and Aerospace Development, Festus Keyamo, in collaboration with the NMDPRA, has moved to stabilise the aviation fuel market amid mounting tensions between airlines and fuel marketers.

This comes as the Trade Union Congress of Nigeria (TUC) asked the federal government to take immediate measures to check increases in the pump price of petroleum products and the resultant hardship imposed on workers and citizens.

The intervention by Keyamo and the NMDPRA aims to halt escalating jet fuel prices and broker a lasting truce, restoring confidence and operational stability in the country’s aviation sector.

According to an executive summary of the Engagements on the Supply and Pricing of Aviation Fuel, obtained from the NMDPRA, a meeting was convened by the Minister of Aviation and Airspace Management on April 22 and 23 2026 to deliberate on the challenges of supply and pricing of Aviation Fuel.

The minister held a series of meetings with Airline Operators of Nigeria (AON), the NMDPRA, and other government agencies in the aviation sector to agree on how the price of aviation fuel could be reviewed downwards, the executive summary showed.

Sequel to the resolution of the meetings, the minister and the NMDPRA convened a meeting of the Technical Committee on April 24, 2026, to discuss the issues and recommend the way forward.

The executive summary further disclosed that the meeting, which had in attendance the Ministry of Aviation, the Ministry of Petroleum Resources, NMDPRA, FAAN, NAMA, NCAA, Airline Operators and Aviation Fuel Marketers, resolved that a technical committee should be constituted.

Sequel to the resolution, the NMDPRA convened a meeting of the Technical Committee on April 24, 2026 to discuss the issues and recommend the way forward.

The key recommendations from the meeting were that, following the engagements and current market fundamentals, those in attendance agreed that the indicative end-user price should range between N1,760 – N1,988 per litre and N1,809 – N2,037 per litre in Lagos and Abuja respectively.

“The indicative prices are based on Platts average prices for the period 17th – 23rd April 2026. Products purchased outside this window may be higher due to high volatility in current prices precipitated by the U.S-Iran war and varying operational costs by operators.

“NMDPRA should direct marketers to sell directly to the Airline operators within this period. To ensure price stability, NMDPRA should engage DPRP to adjust the premium on Platts and the cost variation element that was recently increased by the Refinery.

“NMDPRA to work with FAAN and NCAA to validate airside distributors with infrastructures to trim the number of airside operators based on agreed criteria,” it stated.

Furthermore, it was agreed that the Ministry of Aviation should facilitate a consultative meeting between oil marketers and airline operators to resolve outstanding debts, marketers should consider a 30-day credit window for airlines to pay up for supplies made, and the NMDPRA should recommend the inclusion of ATK under the Naira for Crude Initiative.

Meanwhile, the management of the Akwa State-owned airline, Ibom Air, yesterday, expressed worry over the continued increment in the price of aviation fuel in the country, saying the situation is an unprecedented crisis for Nigeria’s domestic airlines.

“At Ibom Air, the cost of fueling our aircraft has more than tripled between January and today. From an average of N2.1 million per flight in January, as of today, the 27th of April, we are paying N7.6 million to fuel every flight.

“This is a more than 350 percent increase since the beginning of March, a space of just seven weeks! And our aircraft are some of the most fuel-efficient in the domestic market.

“At this point, domestic airlines are baffled at why the price of aviation fuel in Nigeria has ballooned to this level, way above the rest of the world, while the fuel marketers obtain 95 percent or more of their aviation fuel from Dangote Refinery.

A statement by Ibom Air, and signed by the Group Manager, Marketing and Communication, Ibom Airlines Limited, Aniekan Essienette, said a combination of competitive pressures and patriotism have prevented a commensurate increase in their fares.

“We chose to do this believing that the crisis would pass in a week or two, but it has persisted now for nearly two months, continuously increasing, with no reprieve in sight as at today,” it added.

The management of Ibom Airline noted that Worldwide, where fuel price increases are nowhere near what they are facing in Nigeria, airlines are reducing flights to manage the situation.

“We, too, will have to take whatever ameliorating actions we can in the days ahead, including reducing our capacity if necessary, to be able to continue to provide services to our customers and our country.

“We also note that, if this situation persists much longer, airlines will not be able to continue operating just to pay for fuel and nothing else.

“We call on the fuel marketers to seriously reconsider the pricing of aviation fuel to make the airline business model continue to work in Nigeria,” the statement stressed.

In a related development, the TUC has asked the federal government to take immediate measures to check increases in the pump price of petroleum products and the resultant hardship imposed on workers and citizens.

It also restated its earlier call on the federal government to allocate part of the excess crude revenue—earned above the budget benchmark—to subsidise crude oil supplied to domestic refineries,

In a communique issued after its National Executive Council meeting in Abuja, yesterday, the union noted that the combined effects of global crude oil volatility, exchange rate pressures, and domestic supply constraints have continued to drive up the cost of petrol, diesel, and aviation fuel, thereby worsening transportation costs, food prices, production expenses, and overall living conditions.

As a way of cushioning the hardship, TUC urged the government to grant a 50 percent reduction in taxes on manufacturing companies and workers within this period to ease economic pressure and support productivity.

In the communique signed by TUC President, Festus Osifo and Secretary General, Nuhu Toro, the union noted that despite Nigeria’s status as an oil-producing nation, increases in global oil prices have not translated into relief for Nigerian workers.

Rather than benefiting Nigerians, the TUC stated that, “such crises had often exacerbated hardship through rising fuel prices, increased freight costs, imported inflation, pressure on the naira, and escalating costs of goods and services.

Osifo, who read the communique to journalists, said the meeting “reviewed the persistent hardship arising from rising fuel prices and reaffirmed that urgent government intervention is required to prevent further increases in the pump price of petroleum products”.

He restated the union’s call on the Federal government to allocate part of excess crude revenue—earned above the budget benchmark—to subsidise crude oil supplied to domestic refineries, including the Dangote Refinery and other local refineries.

“This approach represents a transparent, production-linked intervention that can lower the cost of refined products without reverting to the discredited subsidy regime” the union said.

TUC further demanded a 50 percent reduction in taxes on manufacturing companies and workers within this period to ease economic pressure and support productivity.

The TUC also condemned the continuous increase in electricity tariffs without corresponding improvements in service delivery.

The union said Nigerians were being compelled to pay more for unreliable power supply, estimated billing, and poor customer service.

According to TUC, the tariff band system for electricity has further worsened the situation, with many consumers charged premium rates without receiving commensurate electricity supply.

“NEC insists that Nigerians must not be forced to pay for inefficiency. Any tariff regime must be fair, transparent, service-based, and accountable.

“TUC calls on the federal government, NERC, and distribution companies to ensure universal metering, eliminate estimated billing, improve supply, and engage organised labour before implementing policies that impose additional burdens on citizens.”

With regards to the enhanced allowances for workers recently approved by the Federal Government, including the N10 billion housing loan scheme, TUC said it received it with cautious optimism, adding that it must translate into tangible benefits devoid of bureaucratic bottlenecks.

On insecurity, TUC said it has observed that the situation has evolved into a major economic and labour crisis, lamenting that when farmers are unable to access their farms, food production declines and prices rise.

“When workers cannot travel safely, productivity suffers. When communities are displaced, businesses collapse and jobs are lost,” it said

TUC further condemned what it described as the unfair labour practice in the food and Beverages sector particularly the impasse between NAFDAC and distilled companies.

It appealed to the Minister of Health to intervene by bringing the parties to the negotiating table.

THISDAY