Dangote refinery approved as sole supplier of Jet A1

8th October 2024

Keyamo disclosed this on Tuesday, during an interview with television station.

The minister, started that with his approval and backing, the airline operators agreed to designate the 650,000 barrels per day refinery as the sole provider of jet fuel for the aviation sector.

He explained that the move comes at an opportune time, following the Federal Government’s recent implementation of a naira-for-crude agreement with Dangote.

He further emphasised that this arrangement would help alleviate the pressure on Nigeria’s foreign exchange.

Keyamo, 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,”.

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Keyamo maintained that sourcing petrol from Dangote would shield airline operators from the impact of crude oil price fluctuations, ultimately reducing their operational costs.

“The price will no longer be subjected to the varying factors of the international market, nor the headwinds of oil price in the international market.

“It will be in local currency so we can be clear as to the cost of it. We will buy in naira. I’m sure we are going to have access to cheaper Jet A1 fuel,” the minister said.

Dangote refinery commenced operations in April starting with the production of jet fuel and diesel and the diesel reached the local market in May

While supplying some of its aviation fuel domestically, the refinery also began exporting, with its first shipment departing for Europe.

Dangote has exported six cargoes of jet fuel and kerosene, all of which were delivered to some African countries since it commenced production.