The Federal Government has announced Dangote Refinery as the exclusive supplier of Jet A1 fuel for Nigeria’s airline operators. This pivotal decision was revealed by Minister of Aviation and Aerospace Development, Festus Keyamo, during an interview on Channels TV on Tuesday.

Keyamo stated that airline operators, with the government’s approval, have agreed to designate the 650,000 barrels-per-day Dangote Refinery as the sole provider of jet fuel for the nation’s aviation sector. The minister highlighted that this move aligns with the recent introduction of a naira-for-crude agreement between the Federal Government and the refinery, which eliminates the need for dollar transactions.

“The airline operators, with my support, have decided to source their Jet A1 fuel exclusively from Dangote Refinery. We’ve also started the naira-for-crude purchase plan, meaning no more reliance on foreign currency for these deals,” said Keyamo.

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He further explained that this initiative would reduce operational costs for airlines by insulating them from fluctuating global crude oil prices and allowing them to purchase fuel in local currency.

“This pricing model shields us from international market fluctuations, providing more predictable costs. We expect cheaper Jet A1 fuel under this local arrangement,” he added.

The Dangote Refinery, which began operations in April 2024, has already been supplying aviation fuel to the domestic market, with additional exports reaching Europe. On May 27, the refinery shipped 45,000 metric tons of jet fuel to Rotterdam, Netherlands, marking the start of its international distribution efforts.