The Federal Government has designated Dangote Refinery as the exclusive supplier of jet fuel for airline operators in Nigeria. This announcement was made by the Minister of Aviation and Aerospace Development, Festus Keyamo, during a recent interview with Channels TV. 

Keyamo indicated that, with his endorsement, the airline operators have agreed to rely solely on the refinery, which has a capacity of 650,000 barrels per day, for their jet fuel needs. He highlighted that this decision comes at a crucial time, coinciding with the Federal Government's recent naira-for-crude agreement with Dangote.

The minister pointed out that this arrangement is expected to ease the strain on Nigeria's foreign exchange reserves. "The airline operators convened recently, and with my support, they have decided to exclusively procure Jet A1 fuel from Dangote refinery. We initiated a naira-for-crude transaction with Dangote yesterday, which involves no dollar component," Keyamo stated.

He further explained that procuring fuel from Dangote would protect airline operators from the volatility of crude oil prices, thereby lowering their operational expenses. "The pricing will no longer be influenced by the fluctuating international market or the challenges posed by global oil prices. 

Transactions will be conducted in local currency, allowing for clearer cost assessments. We will purchase in naira, and I am confident that we will access more affordable Jet A1 fuel," Keyamo added.

In April, the Dangote refinery began operations, initially producing jet fuel and diesel, with diesel supplies reaching the local market by the following month. After fulfilling some domestic aviation fuel needs, the refinery also commenced exports, with its first shipment to Europe. 

On May 27, the vessel Doric Breeze departed from the Lekki Free Zone in Lagos, carrying 45,000 metric tons of jet fuel destined for Rotterdam, Netherlands, as reported by S&P Global Commodities at Sea data.