Nigeria experienced a significant 87 percent decrease in spending on kerosene type jet fuel importation in the first quarter of 2024, dropping to N31 billion from N239.18 billion in the previous quarter (Q4’23).
The National Bureau of Statistics (NBS) report on 'Foreign
Trade in Goods Statistics' for Q1’24 highlighted that this product was one of
the top traded items in West Africa during that time frame.
Jet A-1 is a kerosene-based fuel suitable for various jet
aircraft, including civil and military models, helicopter turbine engines,
turboprops, and compression-ignition piston engines.
In March 2024, the Director of Public Relations and
Information, AVM. Edward Gabkwet, reported that the Chief of Air Staff, Air
Marshal Hassan Abubakar, expressed concerns regarding the rising fuel prices
and the implementation of surcharges. He appealed to the National Assembly to
grant permission for the Air Force to import Jet A-1 fuel to ensure the
continuity of essential air operations.
According to Abubakar’s statement, the current cost of Jet
A-1 fuel stands at approximately N1,200 per liter, significantly higher than
the budgeted amount of N360 per liter. This substantial deviation is adversely
impacting the operational effectiveness of the Nigerian Air Force (NAF).
This development occurs against the backdrop of a shipment
of jet fuel to Europe by Dangote Refinery, with stakeholders anticipating that
domestic distribution will alleviate the issue of high product costs in
Nigeria.
The first shipment, which was loaded onto the vessel “Doric
Breeze,” departed from the Lekki Free Zone in Lagos on May 27th and is
currently en route to Rotterdam, Netherlands, as reported by S&P Global
Commodities at Sea.
The cargo, consisting of 45,000 metric tons of jet fuel, was
awarded to BP as part of a larger tender of 120,000 metric tons issued by the
refinery. Additionally, Spanish refiner Cepsa secured a portion of this tender.