Dangote Refinery

Report: Dangote Refinery supplies two-thirds of Nigeria’s jet fuel, imports drop

Dangote refinery now supplies about two-thirds of Nigeria’s aviation national demand in line with the directive of the Federal Government.

Data from Energy Intelligence, a US-based tracker of oil and gas trends, showed that the 650,000 barrels per day (bpd) refinery has, consequently, reduced drastically the importation of aviation fuel into Nigeria.

The report also stated that the refinery has also lowered prices by about $2 to $3 per metric ton.

Asharami Synergy’s Managing Director, Foluso Sobanjo, was quoted in an interview with Energy Intelligence:“We’re already buying from Dangote [now] it’s slightly cheaper or at least the same price.”

Specifically, Nigeria’s jet fuel imports have plummeted from 13,000 b/d in 2023—when imports met the entire domestic demand—to just 5,000 b/d so far in 2024, the report shows.

Indeed, the impact of the refinery extends beyond Nigeria, influencing other markets across West Africa.

The report notes that regional jet fuel imports from outside West Africa have fallen from 34,500 b/d in 2023 to just 17,900 b/d in 2024. Loading schedules indicate shipments of Dangote jet fuel heading to Benin, Senegal, Togo, The Gambia, and Gabon.

The Minister of Aviation, Festus Keyamo, had confirmed that airline operators have decided to source jet fuel exclusively from Dangote Refinery.

The Minister, who expressed his support for the decision, noted that it is expected to boost demand for Dangote’s products and further reduce Nigeria’s dependence on imported aviation fuel.

Aliko Dangote, the refinery’s CEO, has consistently emphasized his goal of curbing energy imports, which exert significant pressure on the nation’s limited foreign exchange reserves.

Projections suggest that Dangote Refinery’s operations could reduce foreign exchange demand by at least 40% once it begins supplying petrol to the market.

Keyamo also highlighted that the crude-for-naira agreement between the government and Dangote would ease price pressures on the product.

“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.

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