Nigerian Airlines Meet Dangote to Discuss Reduced Aviation Fuel Price
Airline Operators of Nigeria (AON) have reportedly engaged with Dangote Refinery, owned by Africa’s richest man, Aliko Dangote, to discuss a potential deal that would see Nigeria’s domestic airlines procure aviation fuel at a reduced rate.
According to Punch Newspaper, the meeting aimed to reach a deal that could significantly lower the current market price of Jet A1, which fluctuates between N1,100 and N1,250 per liter to N980 per liter.
Quoting Roland Iyayi, CEO of Top Brass Aviation Limited and a prominent member of AON, the newspaper reported that the meeting involved airline industry leaders and the management of Dangote Group, including its founder, Aliko Dangote.
“The meeting resolved that Dangote would supply fuel directly to the local operators for about N980 per liter. What was required was to have the local distributors key into the arrangements. I guess the AON hasn’t established which distributors will be used for that initiative,” Iyayi said.
In late May 2024, it was reported that Dangote Refinery exported its first Jet fuel cargo to Europe. In January, the 650,000-capacity refinery began production and has since produced diesel, which was sold to the Nigerian market.
However, while the oil refinery is expected to release Premium Motor Spirit (PMS) to the Nigerian market this month, despite a fire incident at the facility in late June, industry players in Nigeria’s airline sector believe that Dangote Refinery has helped lower the price of Jet A1, as was also seen when it released diesel to the market.
Osita Okonkwo, COO of United Nigeria Airlines, said:
“Dangote has started producing, and our group went to see him, but I don’t think they have reached their optimum capacity. The refinery has brought down the price. Quite interesting to see what Dangote has done; he has brought down the price,” Okonkwo said.
