The former Managing Director of the Federal Airports Authority of Nigeria (FAAN), Dr. Richard Aisuebeogun, has raised alarm over the growing risk of monopoly in Nigeria’s aviation fuel market, warning that the reluctance of marketers to import Jet-A1 could lead to dominance by a single supplier.
Aisuebeogun made the remarks during a colloquium organised by CITA Energies in partnership with the League of Airport and Aviation Correspondents (LAAC), themed “Aviation Fuel Business: The Scenario and the Metaphor,” held in Lagos.
He explained that the persistent uncertainty in the aviation fuel import business has discouraged many marketers from bringing in products, thereby creating a vacuum that could be exploited by one dominant player.
“At present, many marketers are reluctant to import jet fuel due to uncertainty. If this continues, we risk having a single dominant supplier emerge, which could result in price manipulation and market inefficiencies,” Aisuebeogun said.
The former FAAN chief, who is also the co-founder of Geometric Aviation Synergy Services Ltd, warned that such a situation could threaten the competitiveness of the aviation industry, distort market prices, and raise operating costs for airlines already struggling with high maintenance and foreign exchange expenses.
According to him, the absence of multiple suppliers could undermine transparency in pricing and make regulation more difficult. He stressed that effective market oversight and proactive policies were needed to prevent any form of monopoly from developing in the aviation fuel sector.
“We must avoid running from one problem only to fall into another,” Aisuebeogun said. “Price control becomes difficult under monopolistic conditions. Effective regulatory oversight is key to ensuring fair competition, market stability, and consumer protection.”
He also underscored the importance of domestic refining as a long-term solution to Nigeria’s recurring aviation fuel scarcity. He said the establishment of new refineries and the rehabilitation of existing ones were critical to ensuring sustainable availability and stable pricing of jet fuel across airports in the country.
“The commissioning of new refineries and the rehabilitation of existing ones are pivotal to the successful production of jet fuel,” he stated. “Domestic refining, if done adequately, will reduce import dependency, stabilise supply, and enhance quality control. All of these depend on effective regulation by the responsible agencies.”
Aisuebeogun added that the aviation sector could not afford another supply crisis, noting that inconsistent supply of jet fuel had previously led to flight delays, increased ticket prices, and operational disruptions for domestic and international airlines.
He also encouraged collaboration between government agencies, fuel marketers, and private investors to create a transparent and competitive market structure that supports fair pricing and sustainability.
Meanwhile, industry expert Group Capt. John Ojikutu (rtd) also lent his voice to the discussion, urging the Federal Government to repair the damaged airport fuel pipeline system. He said the pipeline was crucial to maintaining a secure, efficient, and cost-effective aviation fuel distribution network.
“The same way we take the security of our airspace seriously, we should treat the aviation fuel pipeline with the same level of priority,” Ojikutu said. “The repair of the pipeline is critical to the health and safety of the aviation industry.”
Ojikutu noted that continued reliance on trucking fuel to airports increased logistics costs, exposed supply chains to vandalism, and raised the risk of contamination during transport.
Stakeholders at the colloquium agreed that addressing the supply chain gaps in aviation fuel was essential to improving the competitiveness of Nigeria’s aviation industry, enhancing safety, and attracting investment. They also called for clearer policies on pricing, importation rights, and refining capacity to ensure sustainability and fair competition.
As global oil prices remain volatile, Nigeria’s aviation industry continues to grapple with the twin challenges of foreign exchange shortages and inconsistent fuel supply. Industry observers warn that unless urgent steps are taken to encourage multiple fuel suppliers and support domestic refining, the cost of air travel in the country could continue to rise, worsening the financial strain on operators and passengers alike.
