A recent report reveals that the Dangote Refinery is now supplying the bulk of jet fuel for domestic flights in Nigeria, marking a major shift in the country’s aviation fuel supply.
According to oil marketers, the majority of jet fuel used domestically is currently being provided by the Dangote Refinery.
A report from Energy Intelligence reveals that jet fuel marketers attribute the majority of locally used jet fuel to the 650,000 barrels per day Dangote refinery, just six months after it commenced production.
Foluso Sobanjo, the managing director of Asharami Synergy, stated in an interview with Energy Intelligence this week that they are currently purchasing from Dangote because it is either slightly cheaper or at least comparable to import prices. As the downstream subsidiary of Sahara Group, Asharami Synergy has become Nigeria’s leading supplier of airline fuel, capturing more than 20% market share.
Sobango estimated that the Dangote jet is currently priced at a discount of $2 to $3 per metric ton compared to imports.
He noted that the plant regularly offers 10,000 to 20,000-ton “coaster” volumes, which are also much more convenient.
Prices have decreased as the plant has increased its production, even though significant amounts of Middle Eastern and Asian jet fuel are transported past the Nigerian coast en route to Europe. According to sources, Dangote is now operating at over 300,000 barrels per day and started selling gasoline last month.
Industry Explanation
The clarification was issued after the Airline Operators of Nigeria met with Aviation Minister Festus Keyamo last week, stating their preference to buy jet fuel from Dangote going forward.
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The meeting later led to reports in the local press, claiming that Keyamo had appointed Dangote as the nation’s exclusive domestic jet fuel supplier.
Sobanjo clarified inaccurate local reports stating that Dangote had begun selling jet fuel domestically in naira.
Sales of domestic petrol and diesel were transitioned to the local currency following a government-facilitated agreement for Dangote to purchase Nigerian crude oil using naira.
He mentioned that although the jet is currently sold in U.S. dollars per ton, this might change soon.
Keyamo stated that by removing the impact of international market fluctuations, we can stabilize jet fuel prices, making them more transparent and affordable since payments will be conducted in naira.
Changing Trade Patterns
According to Kpler tanker tracking, Dangote has exported 1.1 million tons of jet fuel overseas (equivalent to 35,000 barrels per day) since it started shipments in March.
This includes nearly 290,000 tons of jet fuel shipped to Europe and 315,000 tons sent to South America, while the remainder primarily remains in West Africa.
Exports have decreased somewhat since September, aligning with increased domestic sales.
According to Energy Intelligence, since April, an extra 94,000 tons of Dangote jets have been delivered to various ports in Nigeria, primarily Lagos. The refinery’s management had earlier indicated that about three-quarters of the jet production would be transported by sea while the remainder would be distributed via road tankers headed inland.
According to calculations by Energy Intelligence, Dangote jet now accounts for at least two-thirds of Nigeria’s aviation fuel supply and nearly half of the total used across West Africa.
Nigeria’s imports of jet fuel have dramatically decreased from 13,000 barrels per day last year—when they constituted the entire national supply—to just 5,000 barrels per day so far in 2024. Similarly, jet fuel imports into West Africa from outside the region have fallen significantly from 34,500 barrels per day in 2023 to only 17,900 barrels per day this year. According to loading schedules, Dangote Industries is exporting jet fuel to countries like Benin, Senegal, Togo, The Gambia and Gabon within the region. The owner of Dangote has previously stated that their plant aims to eventually produce enough jet fuel for all of Africa’s needs.
Security of Supply
Local fuel marketers cautioned that Dangote might not resolve the issue of frequent stock-outs at Nnamdi Azikiwe International Airport in Abuja, which is entirely dependent on road tankers for its supply. However, “there have been no supply disruptions in Abuja this year,” according to Sobanjo.
He credited the stable supply chain to a milder rainy season, which has ensured that roads remain passable.
