The Federal Government of Nigeria has announced that Dangote Refinery will now serve as the exclusive supplier of jet fuel (Jet A1) to all aircraft companies operating within the country.
The announcement was made by the Minister of Aviation, Festus Keyamo, during an interview on Channels TV on Tuesday.
Keyamo revealed that the decision was made in cooperation with the Nigerian airline operators, who recently agreed to source their jet fuel exclusively from Dangote’s 650,000 barrels per day refinery, located in Lagos.
The airline operators’ decision was made with the blessing and approval of the Aviation Ministry.
“The airline operators just met recently. With my blessing, it’s a decision from the airline operators in Nigeria that they should only buy Jet A1 from Dangote Refinery,” said Keyamo.
The announcement comes shortly after the federal government and Dangote Refinery finalized a “naira-for-crude” arrangement, which Keyamo described as a strategic step to ease the burden of foreign currency demand on the economy.
Under the agreement, the price of jet fuel will be based on the local currency, the naira, and not subject to international market fluctuations or the U.S. dollar.
“You can see that yesterday we started a naira-for-crude purchase with Dangote. It’s all in naira, no dollar component,” Keyamo explained.
The move is expected to stabilize the cost of jet fuel in the Nigerian market and provide airlines with more predictable pricing, insulated from the volatility of international oil prices.
The decision to source jet fuel locally from Dangote Refinery is expected to bring multiple benefits to Nigeria’s aviation sector including cost stability, reduced currency strain, and cheaper fuel prices.
Keyamo expressed confidence in the new arrangement, stating, “The price will no longer be subjected to the varying factors of the international market, nor the headwinds of oil price fluctuations.
“We will buy in naira. I’m sure we are going to have access to cheaper Jet A1 fuel.”
The move marks a significant shift in how Nigeria’s aviation industry procures fuel and could improve the overall stability of the sector.
Previously, airline operators had faced operational difficulties and price uncertainties due to the reliance on imported fuel, often purchased with foreign currency.
Additionally, with the Dangote Refinery playing a pivotal role in the country’s energy sector, the move may strengthen Nigeria’s ability to meet its fuel demands independently.
Industry insiders suggest that the agreement could offer much-needed stability, particularly in a sector where fuel costs represent a significant portion of operating expenses.
The Dangote Refinery, which was commissioned earlier this year, has been lauded as a game changer for Nigeria’s energy sector.
Source: News.Nigeria
