The Nigerian federal government has officially designated Dangote Refinery as the sole provider of Jet A1 fuel to aircraft operators across the country.
This announcement was made by the Minister of Aviation, Festus Keyamo, during an interview broadcast on Channels TV on October 8.
Keyamo revealed that airline operators had recently convened and agreed, with his endorsement, to source all their jet fuel exclusively from the Dangote refinery, which has a capacity of 650,000 barrels per day.
“This decision stems from a recent meeting of the airline operators in Nigeria, where they collectively resolved to purchase Jet A1 fuel solely from Dangote Refinery, with my approval,” Keyamo stated.
He noted that the federal government had also initiated a naira-for-crude agreement with Dangote, emphasizing that all transactions would now be conducted in Naira, eliminating any dollar components.
“This arrangement is timely as we have just implemented the naira-for-crude purchase. It will significantly reduce the pressure on foreign currency reserves,” he added.
Keyamo assured that this local currency transaction would stabilize fuel prices, shielding them from the fluctuations associated with the international market and the unpredictable oil price dynamics.
“This decision stems from a recent meeting of the airline operators in Nigeria, where they collectively resolved to purchase Jet A1 fuel solely from Dangote Refinery, with my approval,” Keyamo stated.
He noted that the federal government had also initiated a naira-for-crude agreement with Dangote, emphasizing that all transactions would now be conducted in Naira, eliminating any dollar components.
“This arrangement is timely as we have just implemented the naira-for-crude purchase. It will significantly reduce the pressure on foreign currency reserves,” he added.
Keyamo assured that this local currency transaction would stabilize fuel prices, shielding them from the fluctuations associated with the international market and the unpredictable oil price dynamics.
“The pricing will be more predictable since it will no longer be influenced by international market factors. We anticipate that this will provide us with more affordable access to Jet A1 fuel,” he concluded.
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