By Abigail Philip David
The Federal Government has designated Dangote Refinery as the exclusive supplier of Jet A1 fuel for Nigeria’s airline operators, according to the Minister of Aviation and Aerospace Development, Festus Keyamo. The announcement was made during an interview with Channels TV on Tuesday.
Keyamo explained that, with his approval, airline operators in Nigeria have agreed to source their jet fuel solely from Dangote’s 650,000 barrels-per-day refinery. He highlighted that the decision aligns with the Federal Government’s recent naira-for-crude agreement with Dangote Refinery, a strategy aimed at reducing pressure on the nation’s foreign exchange reserves.
“The airline operators met recently, and with my blessing, they decided to buy only Jet A1 from Dangote Refinery,” Keyamo stated. “We’ve also begun a naira-for-crude purchase with Dangote, which eliminates the need for dollars in the transaction.”
The minister also noted that this arrangement would shield the aviation sector from fluctuations in international crude oil prices, reducing operational costs for airlines. “The price will no longer be tied to international market variations, and since it will be in local currency, it provides clarity and stability. We expect access to cheaper Jet A1 fuel,” he added.
The Dangote Refinery, which began operations in April, initially produced jet fuel and diesel, with the latter entering the local market by May. Following domestic supplies of aviation fuel, the refinery began exporting, with its first shipment of 45,000 metric tons of jet fuel leaving for Rotterdam in May. Since then, the refinery has exported several cargoes of jet fuel and kerosene to destinations like Senegal, Togo, and Ghana.
This move is expected to stabilize fuel costs for Nigerian airlines, which have faced challenges due to volatile international fuel prices.
