Nigeria’s aviation industry is contending with a growing underground trade in jet fuel that industry stakeholders warn could undermine safety and operational integrity across the sector.
Beneath increasing passenger traffic and busy airport activity, concerns are mounting over the proliferation of substandard aviation turbine kerosene (Jet A-1) sold through black market channels, often presented as cheaper alternatives but carrying significant safety risks.
Industry experts caution that compromised fuel quality can damage aircraft engines, increase maintenance costs and, in extreme situations, endanger lives. What may appear to be a short-term commercial gain for some operators poses wider systemic risks to airlines, regulators and passengers, weakening confidence in an industry where safety standards are expected to remain uncompromised.
The issue was openly discussed at an aviation colloquium organised by CITA Energies in October last year, where regulators, fuel suppliers, airline operators and energy specialists examined the state of Nigeria’s jet fuel supply chain. During the forum, stakeholders acknowledged the existence of a parallel market dealing in uncertified fuel, warning of long-term consequences if left unchecked.
Although no specific offenders were identified, participants emphasised that the black market is expanding and requires urgent industry attention.
In an exclusive interview, the Chief Executive of CITA Energies Ltd., Dr. Thomas Ogungbangbe, attributed his concerns about the expanding jet fuel black market to decades of experience in the downstream energy sector. He stated that the core issue extends beyond pricing to the compromise of fuel quality, explaining that some operators source products from modular refineries not licensed to produce aviation-grade fuel or recycle household kerosene for sale as Jet A-1.
“If you think you are buying cheaper products, you may pay for it when you go for your check, even in multiple folds,” he warned. “There are companies in the habit of selling household kerosene in place of aviation turbine kerosene because they can get it cheaper. These modular refineries are not even licensed to make anything for jets. Yes, the carbon chains may look similar, but aviation fuel is about precision.”
To illustrate the technical distinction, he added: “Let’s say you have flour. You want to make a doughnut, I want to make a cake, somebody wants to make bread. Basically, we have the same flour, but the outcome is completely different. That is exactly what happens with fuel. Using the wrong specification for aviation is like baking bread when what you need is cake.”
He explained that such practices enable non-compliant suppliers to undercut legitimate marketers who invest in certified imports or refinery-produced fuel, creating market distortions that reward regulatory breaches.
Airline representatives at the colloquium acknowledged that intense cost pressures driven by foreign exchange volatility, high operating costs and narrow profit margins make lower-priced fuel attractive. However, they cautioned that these pressures also fuel the black market.
Dr. Ogungbangbe described the ethical dimension of the issue, stating: “I wouldn’t be part of a company, having been in the industry for decades, to make more money than is normal by cutting corners. I will not do it, because I know what it means down the line. It is like body language becoming body odour – you may ignore it at first, but eventually everyone notices.”
He noted that participants at the colloquium agreed that raising awareness among airlines is critical to preventing exposure to artificially low prices that conceal long-term risks.
The commissioning of the Dangote Petroleum Refinery has been widely regarded as a milestone for Nigeria’s energy sector, including aviation fuel supply. With capacity to meet domestic jet fuel demand and supply the wider West African market, the refinery has reduced dependence on imports.
However, Dr. Ogungbangbe observed that increased local production does not automatically eliminate malpractice. “The local refinery has shown competence, depth, capacity, ability and reliability to deliver all the jet fuel needs,” he said. “But how individual companies want to run their businesses may differ. We practise capitalism. If I have a relationship in Rotterdam or Hong Kong and the price works better for me, what stops me from doing that?”
He explained that the globalised trading environment and the predominantly dollar-denominated nature of jet fuel transactions create arbitrage opportunities that some market participants may exploit.
Structural challenges continue to sustain the black market despite improved local supply. Financial constraints among certain marketers limit their ability to procure certified fuel in large volumes, while market fragmentation intensifies competition for airline contracts. Uneven access to foreign exchange further compounds these pressures, creating incentives for rule-bending in pursuit of commercial advantage.
International aviation authorities have consistently emphasised that fuel quality is fundamental to safety. The International Civil Aviation Organisation (ICAO) and the International Air Transport Association (IATA) prescribe strict requirements for fuel testing, traceability, storage and handling. Their guidance warns that contaminated or off-specification fuel can result in engine flameouts, corrosion and catastrophic failure, and recommends severe penalties for operators implicated in violations, including licence suspension.
In Nigeria, oversight responsibilities rest with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which licenses and inspects fuel producers and marketers, and the Nigerian Civil Aviation Authority (NCAA), which enforces aviation safety regulations including Part 18 requirements on fuel storage, handling and quality assurance at airports.
Dr. Ogungbangbe acknowledged regulatory efforts, stating that the NMDPRA “is looking seriously at this issue and has been giving sanctions. They have done very well in trying to put industrial rights in place.”
Despite existing regulatory frameworks, enforcement challenges persist, particularly outside major aviation hubs. Industry analysts have called for stronger collaboration between the NMDPRA and NCAA, as well as financial scrutiny of fuel marketers, to reduce opportunities for black market operations.
As Nigeria seeks to consolidate its position as a regional aviation hub, stakeholders maintain that the integrity of the jet fuel supply chain will remain central to sustaining safety and investor confidence.
Dr. Ogungbangbe summarised the industry’s position, stating: “We must keep telling the airlines what is happening. Awareness, regulation and ethics must work together. Because when it comes to aviation, the cost of compromise is simply too high.”
The debate underscores that beyond commercial considerations, fuel quality remains a critical safety issue with national and regional implications for Nigeria’s aviation future.
