The Federal Government has authorised Dangote Refinery to be the exclusive supplier of jet fuel for airlines in Nigeria.
This announcement was made by Festus Keyamo, the Minister of Aviation and Aerospace Development, during an interview with Channels TV on Tuesday.
In April, the 650,000 barrels per day (bpd) refinery kicked off its supply of jet fuel to the local market. Then in May, the Dangote refinery hit another milestone by exporting its first jet fuel cargo to Europe.
Keyamo explained that, with his support, airline operators have agreed to designate the refinery as the sole provider of jet fuel for the aviation sector.
He stressed that this decision comes at a crucial time, coinciding with the Federal Government’s recent naira-for-crude deal with Dangote.
What Kenyamo said:
“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,”
“You can see that yesterday we started a naira-for-crude purchase with Dangote. It’s all naira, no dollar component,” Keyamo said.
Keyamo also mentioned that getting petrol from Dangote would protect airline operators from the ups and downs of crude oil prices, which would help lower their operational costs.
The Nigerian National Petroleum Company Limited (NNPC), the country’s oil regulatory body, recently announced it will end the exclusive purchasing rights it has held with Dangote Refinery during its early operations.
As a result, fuel pricing will now be dictated by market forces established by the Dangote refinery and other marketers.
