Nigerian Airlines source jet fuel from Dangote refinery

Airline Operators in Nigeria have started purchasing Jet A1 fuel from Dangote’s refinery, a move aimed at reducing reliance on costly imported fuel.

This shift comes after the Federal Government approved Dangote Refinery as the sole supplier of jet fuel for the aviation sector, as announced by Aviation Minister Festus Keyamo.

Prof. Obiora Okonkwo, spokesperson for the Airline Operators of Nigeria (AON), confirmed that the purchase began a few months ago. He noted that the price of Jet A1 varies by location and time, reflecting the fluctuating nature of fuel costs.

An industry insider explained the rationale behind sourcing fuel locally. The high cost of imported Jet A1 has been a significant burden for airlines, prompting discussions with Dangote to explore local sourcing options.

“If we can get enough from a Nigerian refinery, it should be less expensive than when imported,” the official stated.

However, negotiations with Dangote have faced delays due to ongoing discussions between Dangote and the Nigerian National Petroleum Company Limited (NNPCL) regarding pricing and supply.

While a price has been proposed, it has not yet been finalized, leaving the quantities needed uncertain.

The demand for Jet A1 fuel can vary based on the number of aircraft in operation, with fluctuations impacting daily fuel requirements. “Some days, we have more planes flying, so the demand goes up, and other days it’s lower,” the insider noted.

This development highlights the government’s efforts to support local refiners and stabilize fuel supply in Nigeria’s aviation sector. The aim is to create a more sustainable and cost-effective solution for airlines grappling with rising fuel prices.