The Federal Government has approved the decision of airline operators in Nigeria to purchase Jet A1 fuels from Dangote Refinery only.
In an interview monitored by Investors King, the Minister of Aviation and Aerospace Development, Festus Keyamo, revealed that the approval was granted following a recent meeting with the airline operators.
According to him, the decision to purchase fuel exclusively from the Dangote Refinery was taken by the operators.
The Minister lauded the naira-for-crude agreement with Dangote Refinery, adding that it will ease the pressure on foreign exchange.
He noted that the price of the product would no longer be influenced by the international market as local currency would dominate the market.
Furthermore, he assured the airline operators that they were going to have access to cheaper Jet A1 fuel from the Refinery.
Keyamo said, “The airline operators just met recently. With my blessing, it’s a decision from the airline operators in Nigeria that they should only buy from Dangote refinery Jet A1.
“You can see that yesterday we started naira-for-crude purchase with Dangote. It’s all Naira, no Dollar component.”
“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 added.
The Minister of Finance, Wale Edun, on October 5, announced the Naira-for-crude sale deal with Dangote Refinery effective October 1, 2024.