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Nigeria’s Airline Operators (AON) have confirmed they are now purchasing Jet A1 fuel from the Dangote refinery. This comes as part of efforts to reduce the high cost of imported aviation fuel. According to Prof. Obiora Okonkwo, the spokesperson for AON, they began sourcing from Dangote a few months ago.
Okonkwo explained that the cost of Jet A1 fuel fluctuates depending on the location and other factors. An anonymous industry official also pointed out that the rising cost of imported Jet A1 pushed them to seek local alternatives.
The official mentioned that while Dangote proposed a price, negotiations are still ongoing, largely due to some unresolved disagreements between Dangote and the Nigerian National Petroleum Corporation (NNPC).
The official noted, “If we can get enough from Dangote’s Nigerian refinery, the cost of fuel would likely reduce.” However, discussions have not yet progressed to finalizing the fuel quantity or price due to the pending issues with NNPC.
As of now, the Federal Government has also approved the Dangote refinery as the sole supplier of jet fuel for Nigeria’s aviation sector. The Minister of Aviation and Aerospace Development, Festus Keyamo, stated that this approval comes as part of a naira-for-crude agreement, ensuring local sourcing of jet fuel to meet Nigeria’s aviation needs.
Operators hope that once the price and supply issues are sorted out, the cost of aviation fuel will stabilize, which will ease pressure on the airline industry and possibly reduce the cost of flight operations. But as with everything in Naija, we are all just watching to see how this matter will end!
