The Federal Government has officially approved Dangote Refinery to become the exclusive supplier of jet fuel to Nigeria’s airline operators.
This was confirmed by Festus Keyamo, the Minister of Aviation and Aerospace Development, during an interview on Channels TV on Tuesday.
Keyamo explained that, with his approval, the airline operators agreed to source all Jet A1 fuel solely from Dangote’s 650,000 barrels-per-day refinery.
This shift is expected to ease the pressure on Nigeria’s foreign exchange by eliminating the dollar component from transactions, aligning with the government’s new naira-for-crude agreement with Dangote.
The minister further highlighted that this arrangement would stabilise operational costs for airlines by insulating them from fluctuations in international crude oil prices. By purchasing jet fuel in naira, airlines can anticipate more predictable pricing, potentially leading to reduced airfares for passengers.
Since its operations began in April, the Dangote Refinery has supplied aviation fuel domestically and started exporting to European and West African markets, with the first jet fuel shipment bound for Rotterdam in May.
So far, the refinery has exported six cargoes of jet fuel and kerosene to countries such as Senegal, Togo, and Ghana.
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