The Federal Government has approved Dangote Refinery as the exclusive supplier of jet fuel for Nigeria’s airline operators. This was confirmed by the Minister of Aviation and Aerospace Development, Festus Keyamo, during an interview on Tuesday with Channels TV.

Keyamo revealed that the decision, backed by his approval, was reached after discussions with airline operators, designating Dangote’s 650,000 barrels per day refinery as the sole provider of jet fuel for the aviation sector. The announcement aligns with the Federal Government’s recent introduction of a naira-for-crude agreement with the refinery, aimed at easing foreign exchange pressures.

“The airline operators just met recently. With my blessing, they decided that they should only buy from Dangote Refinery. You can see that we started a naira-for-crude purchase with Dangote. It’s all naira, no dollar component,” Keyamo explained.

The minister highlighted that purchasing locally from Dangote Refinery will shield airline operators from the volatility of international crude oil prices, potentially lowering operational costs. “The price will no longer be subject to the fluctuations of the international market,” Keyamo said, adding that the arrangement would stabilize jet fuel prices by eliminating exposure to foreign exchange risks.

The Dangote refinery, which began operations in April, has already started producing jet fuel and diesel for both local and export markets. In May, it made its first shipment of jet fuel to Europe, with six cargoes exported so far to Senegal, Togo, and Ghana.

This development is seen as a strategic move to enhance the country’s aviation fuel supply while reducing reliance on foreign imports.