The Federal Government of Nigeria has announced that the Dangote Refinery has been granted exclusive authorization to supply jet fuel, or Jet A1, to all aircraft operating in the country. This significant development was revealed by the Minister of Aviation, Festus Keyamo, during an interview on Channels TV on Tuesday.
Keyamo explained that the airline operators have agreed to make the 650,000 barrels-per-day refinery their sole supplier of jet fuel, with his endorsement and support. “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,” he stated.
Keyamo further emphasized that the new arrangement allows for a naira-for-crude purchase agreement with Dangote, eliminating the dollar component. “It’s all Naira, no Dollar component,” he explained, highlighting the significance of this shift.
The timing of this move aligns with the recent implementation of the naira-for-crude agreement between Dangote and the federal government. Keyamo stressed that this arrangement would lessen the strain on foreign currency, a crucial step for Nigeria’s economy.
He also pointed out that with this agreement, the price of jet fuel will no longer be subject to the international market’s fluctuations. “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 stated.
This exclusive supply deal is expected to stabilize the aviation sector, offering more predictable and affordable pricing for airline operators while supporting local economic policies. The partnership marks a crucial step toward reducing Nigeria’s reliance on foreign exchange for critical aviation supplies.
