Nigeria’s Jet A1 crisis persists 32 years after pipeline collapse

Thirty-two years after a major pipeline rupture grounded direct aviation fuel supply, Nigeria continues to lose millions of dollars yearly.

Experts describe the horror as a protracted tragedy that disgraces an oil-producing nation now dependent on imported Jet A1 and the predatory practices of greedy middlemen.

At a Gateway Colloquium organised by CITA Energies in partnership with the League of Airports and Aviation Correspondents (LAAC) in Lagos yesterday, industry stakeholders revisited the long-standing crisis plaguing the aviation fuel value chain.

The forum, themed “Aviation Fuel Business: The Scenario and the Metaphor,” brought together experts, regulators and policymakers to confront the pressing question: why does an oil-rich country still struggle to fuel its own aircraft?

Speakers lamented that the collapse of the pipeline linking refineries to airports has forced airlines to rely on tankers for fuel delivery, an inefficient and expensive alternative that inflates costs and disrupts operations.

The vacuum, they noted, has also fueled the rise of a thriving black market, where unregulated dealers profit from scarcity and price volatility.

The experts identified the absence of reliable local refining, weak regulatory oversight and lack of coordinated investment in fuel infrastructure as the core of the crisis.

They urged the federal government to rehabilitate the abandoned pipelines, incentivise private sector participation in Jet A1 production and storage, and enforce transparent pricing mechanisms.

According to them, fixing the pipeline network and investing in domestic refining will not only slash operating costs for airlines but also stabilise ticket prices, strengthen safety standards and restore investor confidence in the aviation sector.

At the event, the Group Managing Director of CITA Energies, Dr. Thomas Ogungbangbe, said that if the 98-kilometer pipeline at the Lagos airport which is lying idle is restored, it would significantly reduce traffic congestion by keeping over 100 aviation fuel trucks off Lagos roads daily. The pipeline was shut in 1992 by the Federal Government after it ruptured.

He said the pipeline, which has been non-functional for more than 30 years, would not only ease fuel supply to airlines but also eliminate surface transportation of aviation fuel, reducing costs and improving safety.

He said hydrants can be built into some of the airports so that the safety issues that come with the pipeline issue can be taken out.

“Having these pipelines will save Nigeria millions of dollars. The responsible agencies should work together to look at the possibilities of restoring the abandoned pipeline. Most of the vessels that carry these products from Nigeria, go to other countries like Togo to do their repairs because we do not have the facilities. We need to secure things like these that will bring opportunities to Nigeria.

“The Nigeria Civil Aviation Authority (NCAA) mandates a minimum 7-day storage buffer; major marketers comply, but many smaller depots operate below the recommended 300,000L capacity, jeopardising supply and safety. Many airport depots lack a good road network for bowsers. Public-private partnerships (PPP) could drive infrastructure upgrades at key airports including Lagos, Abuja, and Port Harcourt,” Ogungbangbe said.

On plane fueling rights, he said licensing should require minimum storage, technical competence, and a history of reliable supply to ensure operational consistency.“Jet A1 pricing in Nigeria reflects global and local factors, including refinery economics, logistics, and foreign exchange. Nigeria offers some of the lowest Jet A1 prices in West Africa, influenced largely by Dangote Refinery impact and local supply efficiencies rather than competitive market forces alone. Differences between international Platts prices and local costs arise from forex fluctuations, logistics, and levies. Creating a harmonized pricing index that factors in local production would improve transparency,” he said.

He also noted that although claims of marketer collusion are subjective, oligopolistic behavior exists due to high barriers to entry, adding that expanding refining capacity and encouraging new market entrants can foster competition.

In his submission, the Managing Director of Ndano Energy, Chris Ndulue,  who was one of the panelists, said that the NCAA needs to up its game by monitoring the quality of aviation fuel supplied to the airline operators, while the Federal Airports Authority of Nigeria (FAAN) too should be cautious on the allocation of land space to operators.

He cited the Enugu airport, which he said has not less than five fuel marketers supplying fuel to the few airlines operating into the airport. He said this is needless and that the growing number of fuel marketers has not justified the growth of the airlines in the last decade.

“Some airports have about 30 fuel marketers. At Enugu airport for instance, we have about five fuel marketers who are in high numbers for the operators at that airport. It is increasingly necessary for people to work together. Though, it is quite difficult because of the poor experience of some who collaborated in the past, but the truth is that we can’t run away from it.

“There are so many aviation fuel marketers in Nigeria. The NCAA has to look at the economic and financial health of fuel marketers. If an operator buys from those who steal the product, the operator will be providing a black market for aviation fuel.

“The black market is increasing as we see a multiplicity of small marketers. People jump into the business. We need to ensure the business guarantees safety, security and quality of aviation fuel. We need to focus on what we can do to provide regulations and guarantee the quality and safety of products the airlines are getting,” Ndulue said.

A former Managing Director of the Federal Airport Authority of Nigeria (FAAN), Dr. Richard Aisuebeogun,  who was the  keynote speaker said that the aviation fuel market in Nigeria operates within a complex and demanding environment.

He said that despite the fact that Nigeria is an oil-producing nation, it has remained heavily reliant on imported Jet A-1 and that the cost is still high despite the coming onboard of Dangote Refinery.

One of the panelists, Group Capt. John Ojuikutu(Rtd) who is the Chief Executive Officer (CEO) of Centurion Aviation Security and Safety Consult, asked  why the Ejigbo pipeline, which was designed to supply fuel to the Lagos airport could not be repaired over 30 years after it ruptured. He said that besides the logistics-driven high cost of fuel, there has been evidence of fuel contamination in the sector. He maintained that the continued closure of the pipeline has led to increased costs of aviation fuel, logistics bottlenecks, and heightened safety risks associated with trucking operations.

The Minister of Aviation and Aerospace Development, Festus Keyamo, who was represented by Henry Agbebire, Director, public affairs and Consumer Protection at FAAN said the scenario reminds us of the present realities: fluctuating prices, supply vulnerabilities, and infrastructural challenges; while the “metaphor” calls stakeholders to look beyond the surface: to envision a new energy paradigm that supports growth, innovation, and environmental responsibility in Nigeria’s aviation sector. He said aviation fuel sits at the very heart of airline operations, as it does not only represent a key cost driver for airlines but also a strategic index of national logistics and economic vitality.

Keyamo said as a Ministry, it remains committed to policies and partnerships that will ensure the availability, accessibility, and affordability of aviation fuel. “We are equally focused on promoting dialogue between government, oil marketers, and airline operators to create a fair and transparent fuel supply chain that supports both economic sustainability and operational excellence.

“This conversation today is more than an analysis of challenges; it’s an opportunity to shape solutions. I encourage all participants to speak freely, think boldly, and help chart a course that will make Nigerian aviation stronger and more sustainable,” he  said.

The Managing Director of FAAN, Olubunmi Kuku who sent a goodwill message, said the Authority recognizes the strategic role of oil marketers in ensuring a safe, reliable, and sustainable fuel supply chain. She said the Authority is committed to supporting policies and partnerships that will strengthen this vital segment of the aviation ecosystem.

She said FAAN will work with regulators to streamline and accredit fuel marketers, ensuring that only competent and compliant players operate at the airports and encouraged collaboration among marketers to move from competition for volume to cooperation for quality and sustainability.

The MD said: “FAAN is open to supporting the establishment of additional JUHI facilities beyond Lagos and Abuja. More fuel farms across our airports will ease logistics, reduce costs, and enhance nationwide connectivity. We will remain steadfast in ensuring that fuel quality and safety are never compromised. Our quality assurance framework will continue to uphold global standards in fuel storage, handling, and delivery.

“FAAN will continue to provide enabling infrastructure from efficient airside access to modern storage facilities while also encouraging innovation, including early exploration of Sustainable Aviation Fuel (SAF) in partnership with forward-thinking marketers.”

Nigeria’s Jet A1 crisis persists 32 years after pipeline collapse