The Federal Government has officially designated Dangote Refinery as the exclusive supplier of jet fuel (Jet A1) to Nigeria’s airline operators.
This significant decision was confirmed by the Minister of Aviation and Aerospace Development, Festus Keyamo, during an interview on Channels TV on Tuesday.
Keyamo disclosed that the move, made in agreement with airline operators, aims to alleviate the pressure on Nigeria’s foreign exchange reserves and stabilize fuel costs for the aviation sector.
The arrangement comes in the wake of the Federal Government’s naira-for-crude agreement with Dangote, marking a shift from dollar-based fuel procurement.
“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,” Keyamo stated. “It’s all naira, no dollar component.”
He emphasized that this partnership with Dangote Refinery would protect local airlines from volatile international oil prices and ultimately reduce operational costs.
The pricing of jet fuel would now be based on local currency, offering stability and clarity in cost management for airline operators.
Dangote Refinery, which began operations in April 2024, has been producing both jet fuel and diesel. While supplying the domestic market, the refinery has also expanded its reach to international markets, including exports to Europe, with its first shipment of jet fuel leaving for Rotterdam, Netherlands, in May.
This agreement is expected to have long-term benefits for Nigeria’s aviation industry, making fuel more affordable and accessible while reducing dependence on foreign imports.