Airline Operators in Nigeria have confirmed their decision to purchase Jet A1 fuel from Dangote’s refinery, a move expected to ease the financial burden of importing the essential fuel. The spokesperson for the Airline Operators of Nigeria (AON), Prof. Obiora Okonkwo, disclosed that arrangements to source from Dangote began several months ago, as operators sought cost-effective solutions to the soaring prices of imported jet fuel.
“The amount of Jet A1 varies from time to time and airport to airport,” Okonkwo explained, noting that fluctuations in price depend on factors such as location and availability.
An industry insider, speaking anonymously, elaborated on the motivation behind the push for local sourcing. “We met with Dangote and indicated our interest in working with them because Jet A1 is too expensive, and it continues to be expensive because it is imported,” the source said. They emphasized that sourcing fuel from Nigerian refineries could significantly reduce costs, provided that domestic production can meet demand.
However, the negotiations have faced delays. The official revealed that discussions stalled after a disagreement between Dangote Refinery and the Nigerian National Petroleum Corporation (NNPC). “Until the matter is resolved, Dangote has not given us any concrete feedback,” the source added. Although Dangote Refinery proposed a price, no final agreement has been reached, as pricing and quantities are still under discussion.
The demand for Jet A1 fuel in Nigeria fluctuates with the number of aircraft in operation. “The demand for Jet A1 is a function of capacity. Today, I might have eight aircraft flying, tomorrow I might have six,” the official stated, emphasizing that the industry’s fuel needs are dynamic.
Recently, the Federal Government approved Dangote Refinery as the sole supplier of jet fuel to Nigerian airlines. This decision, announced by the Minister of Aviation and Aerospace Development, Festus Keyamo, aligns with the government’s broader naira-for-crude policy, designed to bolster local refining and stabilize fuel prices.
The industry is hopeful that once the NNPC-Dangote dispute is resolved, the move will bring much-needed cost relief and improve operational efficiency for Nigeria’s airline sector.
