The Federal Government has officially designated Dangote Refinery as the exclusive supplier of jet fuel for airline operators in Nigeria.
This approval marks a significant development in the aviation sector, aiming to streamline fuel supply and enhance operational efficiency for airlines across the country.
This was disclosed by the Minister of Aviation and Aerospace Development, Festus Keyamo, during an interview with Channels TV on Tuesday.
Keyamo statef that, with his approval and support, airline operators have agreed to designate the Dangote Refinery, with a capacity of 650,000 barrels per day, as the sole provider of jet fuel for the aviation sector.
He noted that this decision comes at a strategic time, coinciding with the Federal Government’s recent implementation of a naira-for-crude agreement with Dangote, which aims to bolster the country’s energy supply and stabilize fuel costs for the aviation industry.
The minister emphasized that this arrangement would help alleviate pressure on Nigeria’s foreign exchange reserves
“The airline operators just met recently. With my blessing, it’s a decision from the airline operators in Nigeria that they should only buy from Dangote refinery Jet A1.
“You can see that yesterday we started a naira-for-crude purchase with Dangote. It’s all naira, no dollar component,” Keyamo said.
He added that sourcing petrol from Dangote would protect airline operators from the volatility of crude oil price fluctuations, ultimately helping to lower their operational costs.
“The price will no longer be subjected to the varying factors of the international market, nor the headwinds of oil price in the international market.
“It will be in local currency so we can be clear as to the cost of it. We will buy in naira. I’m sure we are going to have access to cheaper Jet A1 fuel,” Keyamo said.
In April, the Dangote Refinery began operations, initially focusing on the production of jet fuel and diesel, with diesel supplies reaching the local market by the following month.
After fulfilling some domestic demand for aviation fuel, the refinery also ventured into exports, marking its first shipment to Europe.
On May 27, the vessel Doric Breeze departed from the Lekki Free Zone in Lagos, carrying 45,000 metric tons of jet fuel bound for Rotterdam, Netherlands, according to data from S&P Global Commodities at Sea.
Spanish refiner Cepsa has also secured a portion of this tender and is expected to deliver jet fuel to the continent soon.
To date, Dangote has successfully exported six cargoes of jet fuel and kerosene, all of which have been delivered to Senegal, Togo, and Ghana.
This indicates Dangote’s expanding footprint in the regional fuel market and its commitment to meeting the energy needs of neighbouring countries.
