JUST IN: Excitement Grips Nigerians As Flight Ticket Prices Set To Drop, FG Approves Dangote Refinery As Exclusive Jet Fuel Supplier For Airlines

JUST IN: Excitement Grips Nigerians As Flight Ticket Prices Set To Drop, FG Approves Dangote Refinery As Exclusive Jet Fuel Supplier For Airlines Written By Oshiobugie John–  The Federal Government has granted approval for Dangote Refinery to serve as the sole supplier of jet fuel, also known as Jet A1, for all Nigerian airline operators. This decision was announced by the Minister of Aviation, Festus Keyamo, during an interview on Channels TV aired on Tuesday.

Keyamo revealed that Nigeria’s airline operators, with his endorsement, agreed to the exclusive supply arrangement with Dangote’s 650,000 barrels-per-day (bpd) refinery. He emphasized that this move is strategically aligned with the federal government’s recent implementation of the naira-for-crude agreement with Dangote, a development aimed at easing pressure on the nation’s foreign exchange.

“The airline operators, with my full support, made the decision that they will exclusively purchase Jet A1 from Dangote Refinery,” Keyamo stated. “This follows our naira-for-crude deal with Dangote, which means no Dollar component—everything will be in naira.”

This exclusive supply deal is expected to shield Nigerian airline operators from the volatility of international oil markets, significantly reducing their operational costs by removing the impact of crude oil price fluctuations. Keyamo noted that the pricing structure under this new arrangement will be based on local currency, ensuring greater stability and predictability for airlines in managing fuel costs.

Backstory: Dangote Refinery’s Growth in Aviation Fuel

In April 2024, Dangote Refinery commenced operations with the production of jet fuel and diesel, marking a significant milestone for Nigeria’s energy sector. The refinery, which soon began selling its aviation fuel domestically, also made its mark on the international market by exporting its first shipment of jet fuel to Europe.

The first export, 45,000 metric tons of jet fuel, was shipped to Rotterdam, Netherlands, in May, with other cargoes destined for Senegal, Togo, and Ghana. Since then, Dangote has successfully exported six jet fuel cargoes to various West African countries.

What You Should Know

With a $20 billion investment, Aliko Dangote’s refinery—capable of processing 650,000 barrels of oil per day—aims to transform Nigeria’s oil sector. Once fully operational, it will be the largest refinery in both Africa and Europe. The facility is expected to significantly reduce Nigeria’s dependency on imported petroleum products, addressing the nation’s long-standing refining infrastructure challenges. Despite being Africa’s leading oil producer, Nigeria has traditionally imported the vast majority of its fuel due to a lack of sufficient refining capacity—a gap the Dangote Refinery is poised to fill.