The federal government has approved Dangote Refinery as the exclusive supplier of jet fuel, generally known as Jet A1, to Nigeria’s airline carriers.
Festus Keyamo, Minister of Aviation, shared this information in an interview with Channels TV that aired Tuesday.
With his agreement and backing, Keyamo added that the airline operators agreed to allow the 650,000 bpd refinery to be the sole jet fuel supplier to the operators.
He explained that the timing is opportune because the federal government just implemented the naira-for-crude arrangement with Dangote. He stressed that this arrangement will help to relieve the demand on foreign exchange.
“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 naira-for-crude purchase with Dangote. It’s all Naira, no Dollar component,” Keyamo said.
Additionally, Keyamo noted 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,” Keyamo said.
