NMDPRA Backs Dangote Jet Fuel Price to Stabilize Nigerian Market

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has endorsed the daily publication of indicative aviation fuel prices by the new Dangote Petroleum Refinery, viewing the move as a critical tool to ensure market stability and compliance among fuel marketers. The refinery set its gantry price for Aviation Turbine Kerosene (ATK), also known as Jet A1, at N1,820 per litre, a development aimed at bringing transparency to a sector recently destabilized by soaring costs.

This intervention occurs amid a severe Nigeria aviation fuel crisis. According to Airline Operators of Nigeria (AON) Market Reports, oil marketers have consistently sold aviation fuel to airlines at N2,230 per litre or higher. This pricing significantly exceeds the advisory price caps previously issued by the NMDPRA, which set a range of N1,760 to N1,988 per litre for Lagos and N1,809 to N2,037 per litre for Abuja. The crisis escalated in April 2026, when jet fuel prices surpassed N3,000 per litre, prompting airlines to threaten a complete shutdown of domestic flights.

Regulatory Response and Market Impact

In an interview with the News Agency of Nigeria (NAN), NMDPRA's Director of Public Affairs, George Ene-Ita, stated that while petroleum product prices are officially deregulated, Dangote's transparent pricing will bolster the agency's surveillance efforts. "The Dangote Refinery, having released its latest indicative gantry prices, which they promised to publish daily going forward, will enable us to ensure tacit compliance by marketers and operators during our routine surveillance operations nationwide," Ene-Ita said.

He framed the refinery's pricing as a "concession to help ease overhead cost pressures in the aviation sector." The NMDPRA’s own pricing framework was derived from Platts average figures recorded between April 17 and 23, 2026, reflecting global oil market conditions. The regulator acknowledged that geopolitical tensions, including the U.S.–Iran crisis, have contributed to price volatility.

The directive has a significant impact on stakeholders. For Nigerian domestic airlines, it offers a potential reprieve from fuel costs that account for over 40% of their operating expenses. However, independent aviation fuel marketers face considerable margin compression and a loss of pricing autonomy as the NMDPRA pushes for direct sales from the refinery to airlines.

Dangote Group Refutes Corporate Rumors

Separately, the Dangote Group has forcefully dismissed a malicious publication alleging a rift between its President, Aliko Dangote, and Mr. Tony Elumelu. In a statement, Group Chief Branding and Communications Officer, Anthony Chiejina, described the report as entirely baseless and a misrepresentation of both personal and corporate positions, clarifying that the two business leaders maintain a longstanding and cordial relationship.

The company also rejected claims that the Dangote Petroleum Refinery was financed through personal borrowing from friends. "As a matter of principle, Aliko Dangote neither finances his projects through personal borrowing from friends nor engages in lending arrangements of that nature," the statement affirmed, demanding that any such claims be backed by verifiable evidence.

Dangote Group also warned against a rising trend of fabricated statements and the unauthorized use of its leadership's likeness in AI-generated advertisements, stating it would pursue legal action to protect its reputation from such fraudulent activities.

Context and Historical Precedent

The current fuel crisis is not an isolated event. It mirrors a similar situation in May 2022, when Nigerian airlines threatened a nationwide strike after Jet A1 prices soared to N700 per litre. The more severe April 2026 crisis served as the direct catalyst for the NMDPRA's current intervention and Dangote's entry into the market. The establishment of a large-scale domestic refinery producing ATK is a new and potentially stabilizing factor that was absent during previous price shocks, which relied entirely on imported products.

Why This Matters

The introduction of a transparent, locally-refined jet fuel supply by Dangote Refinery represents a pivotal moment for Nigerian aviation. If sustained, it could significantly reduce the sector's vulnerability to global price volatility and foreign exchange fluctuations, which have historically crippled airline operations. For an industry repeatedly pushed to the brink by operational costs, the ability to source fuel at a stable, predictable price is fundamental to its survival and growth.