Chinedu Eze

Aviation fuel marketers have identified some key factors militating against the smooth supply and distribution of aviation fuel, also known as Jet A1, to airlines in Nigeria. 

According to them, some of the key factors are movement of the product to the airports and inadequate regulation, which impinge on the quality of the product.

They further identified the proliferation of marketers, adding that lack of effective regulations have made some marketing companies to abuse the stringent conditions that must be met before a company is allowed to supply the product, which according to them, is very delicate and must be managed delicately.

These issues were brought to the fore last week when CITA Energies organised a colloquium at Radisson Blu Hotel, Ikeja, Lagos, themed: ‘Aviation Fuel Business: The Scenario and the Metaphor’.

In his opening speech, the Chief Executive Officer of CITA Energies Limited, Dr. Thomas Ogungbangbe,recommended a Jet A1-specific regulatory directorate under the Nigeria Civil Aviation Authority (NCAA) or Petroleum Products Pricing Regulatory Agency of Nigeria (PPPRA) as part of measures to enhance policy enforcement and sector monitoring.

Ogungbangbe identified six Ps frameworks for the Nigerian Aviation Fuel Market, which could possibly offer solutions to pricing, supply chain constraints, availability and other bottlenecks.

He listed the six Ps as product, price, promotion, place, policy and partnership. On infrastructure, storage and distribution, he said robust infrastructure remained a critical bottleneck for Jet A1 supply continuity in Nigeria, adding that “NCAA mandates a minimum 7-day storagebuffer, which major marketers   complywith, but many smaller depots operate below recommended 300,000L capacity, thus jeopardizing supply and safety.”

On regulatory oversight, Ogungbangbe saidenhanced inspection and real-time depotthroughput monitoring are necessary to regulate small facilities operating at high volumes and observed that many airports lack good road network for bowsers and suggested that Public-Private Partnerships (PPP) could drive infrastructure upgrades at key airports including Lagos, Abuja, and Port Harcourt.

The CITA Energies Boss said that there should be more stringent scrutiny of the suppliers of the product to the airports, especially smaller operators who are wont to cut corners in supplying the product. 

In the area of airport infrastructure, he noted that there was poor road infrastructure to convey the delicate product to the airports and suggested that the airport managers could partner with the private sector to build road infrastructure under agreed conditions.

In order to ensure that the right quality of aviation fuel is brought to the airports and fed the aircraft, Ogungbangbe said before a marketer is given license, he must have the right facility, which must have minimum storage system, technical competence (his personnel),and a history of reliable supply to ensure operational consistency.

He said that under PPP arrangement, the private sector can invest in pipeline rehabilitation,storage expansion, and digital automation that could be funded through PPP, noting that this could reduce logistics costs and improve fuel availability.

He suggested that through PPP arrangement, the private sector will revive the dormant 98-kilometre aviation fuel pipeline that runs from Atlas Cove through Mosimi and Ejigbo to the Murtala Muhammed International Airport, Lagos. 

If rehabilitated, it would ensure consistency in the quality of the product, ensure faster supply and eliminate the sluggish logistics that beset the movement of bowsers from Apapa to the Murtala Muhammed International Airport with the attendant traffic gridlock. 

He advocated for a strong policy framework that assures operational integrity, environmental compliance, and future readiness for the aviation fuel industry, noting that “clear licensingrules, periodic audits, and digital tracking deter malpractice and sustain fair competition.”

The Managing Director of Ndano Energy and former Managing Director of Arik Air, Chris Ndulue, who was also the chairman of the occasion, said aviation fuel is sensitive because there is need for security, safety and quality in the product supply, but currently the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigeria Civil Aviation Authority (NCAA) may not be paying adequate attention to the operations of marketers in the aviation sub-sector and this has led to unchecked proliferation of the companies that supply the product to airlines.

Ndulue observed that in the past, NCAA was not regulating the activities of the marketers as they ought to, but now they have started paying attention to them but noted that the agency basically regulates the depots, but if a marketer does not have a depot, NCAA does not regulate it, but as an agency that carries oversight function of the aviation industry, it ought to regulate and license aviation fuel marketing companies and urged that the agency and  NMDPRA should collaborate and intensify their regulation of the suppliers of Jet A1 to the aviation industry. 

“They should look at the wider implication if the safety and quality of the product is compromised andthe consequence of such in the safety of air travel in Nigeria. These agencies should make sure that the oil marketers do not compromise in the quality and safety of the product they supply to airlines. There are so many marketing companies. Major airline operators are about eight in number but the number of oil marketing companies is more than twice the number of the airlines that we supply the product to,” he said. 

In his keynote address, air transport specialist and former Managing Director, the Federal Airports Authority of Nigeria (FAAN), Dr. Richard Aisuebeogun, said the price of aviation fuel remainedrelatively lower when compared with neighbouring countries, but high as an oil producer and noted that  while direct government regulation of jet fuel prices might appear desirable, it would likely reintroduce a subsidy regime, which is no longer sustainable in Nigeria’s current fiscal environment. 

“However, trade and competition regulators must ensure that the market remains open and competitive. At present, many marketers are reluctant to import jet fuel due to uncertainty surrounding the operations of the new domestic refinery. This hesitancy is undermining healthy competition. If this trend continues, there is a risk that a single dominant supplier could emerge, potentially leading to price manipulation and market inefficiencies. Therefore, while price control may not be feasible, regulatory oversight to prevent monopolistic practices and encourage fair competition remains essential for market stability and consumer protection,” he said.

Aisuebeogun who is also the co-founder of Geometric Aviation Synergy Services Ltd, saidsafety remained the non-negotiable foundation of aviation; and fuel integrity lies at its core. 

 “Nigeria urgently needs a dedicated Jet A-1 regulatory framework harmonizing standards for production, storage, distribution, and quality assurance from refinery to wingtip,” he said.

Aisuebeogun said passenger traffic in Nigeria would continue to grow, driven by connectivity, tourism, infrastructure investment, and economic diversification, adding that the Jet A-1 market is projected to grow steadily through 2030, underpinned by domestic refining, infrastructure reforms, and regulatory consistency. 

However, the Managing Director and Chief Executive of Federal Airports Authority of Nigeria, Mrs. Olubunmi Kuku, in her goodwill message, said the agency would work with regulators to streamline and accredit fuel marketers, ensuring that only competent and compliant players operate at Nigeria’s airports “so as to promote transparency and a level playing field for all.”

Kuku said as airports expand across the country, FAAN recognizes the strategic role of oil marketers in ensuring a safe, reliable, and sustainable fuel supply chain. 

“We are committed to supporting policies and partnerships that will strengthen this vital segment of the aviation ecosystem,” she said.

Kuku said there was need for collaboration among marketers to move from competition for volume to cooperation for quality and sustainability, adding that the market should be guided by shared standards, not fragmented rivalry.

“FAAN is open to supporting the establishment of additional JUHI (Joint User Hydrant Installation)facilities beyond Lagos and Abuja. More fuel farms across our airports will ease logistics, reduce costs, and enhance nationwide connectivity,” she said.

The colloquium x-rayed the aviation marketing sub-sector and identified issues that could be worked on to have smoother working environment that guarantees product quality.