Oil marketers have confirmed that the Dangote Refinery is now supplying the majority of jet fuel consumed locally, just six months after commencing production. The refinery, which has a capacity of 650,000 barrels per day, is meeting a significant portion of Nigeria’s aviation fuel needs.
“We’re already buying from Dangote; it’s slightly cheaper or at least the same price as imports,” said Foluso Sobanjo, Managing Director of Asharami Synergy, in an interview with Energy Intelligence. Asharami Synergy, a downstream subsidiary of Sahara Group, is now Nigeria’s leading airline fuel supplier, with a market share of over 20%.
The refinery, which began operations in May 2023, is reportedly operating at over 300,000 barrels per day. It started selling gasoline last month and has been providing jet fuel at a slight discount compared to imports, which Sobanjo estimates at $2-$3 per metric ton less.
Aviation Minister Festus Keyamo recently met with the Airline Operators of Nigeria, who expressed a preference for purchasing jet fuel from Dangote. However, Sobanjo clarified that local reports suggesting Dangote would be the sole supplier of jet fuel in Nigeria were incorrect. Currently, jet fuel is sold in US dollars, although there are indications that payments may soon be made in naira.
According to Energy Intelligence, Dangote jet fuel now accounts for two-thirds of Nigeria’s supply and almost half of the fuel used across West Africa. Nigeria’s jet fuel imports have dramatically declined from 13,000 barrels per day in 2023 to just 5,000 barrels per day in 2024.
Despite concerns about regular fuel shortages at Abuja’s Nnamdi Azikiwe International Airport, Sobanjo noted that there have been no supply disruptions this year, attributing the stable supply to favorable weather conditions that have kept roads passable.
The refinery is expected to continue increasing its output, with the goal of supplying jet fuel across the African continent.
