The Federal Government of Nigeria has designated the Dangote Refinery as the exclusive supplier of Jet A1 fuel to airlines operating within the country.
This was disclosed by the Minister of Aviation, Festus Keyamo, during an interview on Channels TV on Tuesday.
According to Keyamo, the decision was reached with the consent of airline operators, who agreed to source their jet fuel exclusively from the Dangote Refinery, a 650,000 barrels per day (bpd) facility.
This move, he stated, received his full endorsement.
“The airline operators recently convened and, with my approval, agreed that they should exclusively purchase Jet A1 fuel from Dangote Refinery,” Keyamo said.
He further highlighted a recent naira-for-crude purchase agreement between the Federal Government and Dangote, aimed at stabilising the fuel supply chain without reliance on foreign exchange.
“Yesterday, we commenced a naira-for-crude purchase with Dangote. It’s a strictly naira-based transaction, with no dollar component involved,” the minister added.
Keyamo explained that this initiative would alleviate the pressure on foreign exchange, as the price of Jet A1 fuel would no longer be subject to the volatility of the international oil market. He assured that the switch to local currency payments would bring about clarity and potentially lower costs for airlines.
“We are confident that this arrangement will lead to more affordable Jet A1 fuel as pricing will be insulated from the fluctuations of the global market. The cost will be fixed in naira, offering airlines a more predictable and stable fuel supply,” he said.
By Ibe Wada
