FG names Dangote Refinery as exclusive supplier of Jet fuel for Nigerian airlines

The Federal Government has granted Dangote Refinery the exclusive right to supply jet fuel to all Nigerian airline operators, a move expected to significantly impact the aviation sector.

This was revealed by the Minister of Aviation and Aerospace Development, Festus Keyamo, during a recent interview with Channels TV.

Keyamo explained that the airline operators, with his endorsement, agreed to designate the 650,000 barrels-per-day refinery as the sole supplier of Jet A1 fuel. This decision aligns with the Federal Government’s new naira-for-crude arrangement with Dangote, designed to ease pressure on Nigeria’s foreign exchange market.

He emphasized that sourcing jet fuel domestically in naira would protect airline operators from the volatility of global crude oil prices, helping to lower operational costs.

“Airline operators in Nigeria have decided, with my backing, to exclusively purchase from Dangote refinery,” Keyamo stated. “We’ve also initiated a naira-for-crude purchase, eliminating the dollar component and stabilizing prices in local currency.”

The Dangote refinery began operations in April, producing both jet fuel and diesel, with its aviation fuel reaching both domestic and international markets. The first export shipment of 45,000 metric tons of jet fuel left for Europe in May, signaling Dangote’s growing influence in global energy markets.

This government-backed partnership is expected to provide Nigerian airlines with cheaper, locally sourced fuel, improving the sector’s financial stability while reducing dependency on foreign imports.