The global market for sustainable aviation fuel (SAF) is projected to reach $312 billion within the next four years, driven by a worldwide push toward cleaner and more sustainable energy sources in the aviation sector, reports The Nation.
According to regulatory data, the sustainable fuel market has witnessed rapid growth, rising from $175.41 billion in 2024 to $196.04 billion in 2025, reflecting a compound annual growth rate (CAGR) of 11.8 percent. Experts attribute this expansion to accelerated industrialization, growing urbanization, the global shift toward renewable energy, increasing demand for biofuels, and rising overall energy consumption.
Analysts forecast that the sector will maintain strong momentum, growing at a 12.3 percent CAGR in the coming years. This growth, they say, is being driven by environmental concerns linked to fossil fuels, rising transportation fuel demand, the global focus on cutting carbon emissions, and the growth of electric vehicles, supported by favorable government policies and regulations.
Emerging trends expected to shape the future of the industry include carbon capture technologies, improved eco-friendly fuel sourcing methods, next-generation biofuels, hydrogen-based fuels, and waste-to-fuel innovations.
In Nigeria, efforts are underway to align with this global shift. Managing Director of the Federal Airports Authority of Nigeria (FAAN), Olubunmi Kuku, emphasized the need for collaboration among aviation stakeholders to reduce logistics costs and improve nationwide fuel supply.
Kuku said FAAN is upgrading infrastructure to enhance efficiency in the supply chain.
She stated, “Setting up more fuel farms across airports will make logistics easier, cut costs, and improve air connectivity across the country.”
She also reaffirmed FAAN’s commitment to maintaining safety standards through its Quality Assurance framework, which ensures international best practices in fuel storage, handling, and delivery. Kuku added that the authority plans to expand airside access, upgrade storage facilities, and support innovation in Sustainable Aviation Fuel (SAF) through partnerships with private marketers.
“FAAN is ready to play its part in building a stronger, cleaner, and more resilient aviation fuel ecosystem in Nigeria,” she said.
Meanwhile, Engr. Peter Dia, General Manager of Operations at Octavus Petroleum Limited, expressed concern over the shortage of skilled technical personnel in the aviation fueling sector. He urged regulators in both the aviation and petroleum industries to ensure that operators possess adequate technical expertise.
“There are marketers in this business today who shouldn’t be here,” Dia remarked, pointing out that Nigeria lacks a local standard for jet fuel. He explained that while Nigeria’s crude oil is suitable for aviation fuel, jet fuel (Jet A1) must go through the proper refining and certification processes before it is safe for use.
He further noted that the aviation fuel business is capital-intensive, citing that a new 45,000-liter Bowser costs around ₦1 billion, and stressed the importance of regulatory checks on the financial stability of fuel marketers.
Dia also criticized the lack of fueling infrastructure planning in many Nigerian airports. “Airports are being designed without involving fuel marketers, which is why some new terminals don’t have fuel hydrants,” he said.
Martin Abhulimen, Regional Manager for Lagos and West Africa at Ibom Air, called on aviation fuel marketers to work more closely with airlines to negotiate better jet fuel prices.
He noted that the sharp increase in jet fuel prices between 2023 and 2024 severely affected airline operations, with carriers unable to pass on the cost to passengers. While fuel hedging is common in other countries, Abhulimen said the volatile Nigerian market makes such strategies impractical.
He urged airlines to form joint negotiating platforms to secure fairer fuel prices and emphasized that poor infrastructure, particularly at secondary airports, continues to be a major obstacle for local carriers.
