Dangote Refinery Powers 95% of Nigeria’s Aviation Fuel, Airlines Raise Alarm Over Price Surge
- Airlines operators say the Dangote Refinery supplies over 95% of Nigeria’s aviation fuel, making it vital for airline operations
- They are facing steep fuel cost increases, which they attribute to artificial scarcity and price manipulation within the distribution chain
- Meanwhile, the Africa Finance Corporation warns that Africa’s heavy reliance on fuel imports leaves it vulnerable to geopolitical chokepoints
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Airlines Operators of Nigeria (AON) has identified the Dangote Petroleum Refinery and Petrochemicals as a cornerstone of support for the country’s aviation industry.
According to the group, the facility provides more than 95% of the Jet A1 fuel used across Nigeria and exported about 1.1 billion litres of aviation fuel to Europe between March and April 20.
Source: UGC
During a televised interview, AON spokesperson Obiora Okonkwo explained that the refinery’s steady output has been essential for keeping domestic airlines running, especially amid global supply challenges linked to tensions in the Middle East and surging fuel costs.
According to The Guardian, Okonkwo described the refinery as transformative for airline operators, calling it both a “game changer” and a “lifesaver.”
Okonkwo said:
“It is a matter of fact that over 95 per cent of aviation fuel supplied across the country comes from the Dangote refinery. To airline operators in Nigeria, Dangote is not just a refinery; it is a game changer and, indeed, a lifesaver.”
Despite the consistent supply, Okonkwo noted that airlines are still grappling with intense operational pressure due to rising Jet A1 prices.
He blamed this on irregularities within the downstream distribution chain, alleging that some marketers are creating artificial shortages even when supply is sufficient.
According to him, this has led to fuel price increases of up to 300% since the Middle East crisis began, suggesting possible market manipulation that disconnects retail prices from actual depot rates.
Africa’s growing fuel dependence and supply risks
Meanwhile, the Africa Finance Corporation (AFC) has warned that Africa’s reliance on imported fuel exposes it to serious vulnerabilities, particularly during geopolitical conflicts.
In a report released in Nairobi, the institution projected that the continent could face a fuel shortfall of up to 86 million tonnes by 2040.
Currently, Africa imports over 70% of its refined fuel, along with approximately $230 billion worth of essential goods annually, including food, fertiliser, plastics, and steel.
The AFC estimates that fuel import demand will rise from 74 million tonnes in 2023 to 86 million tonnes by 2040—an amount comparable to the output of nearly three large-scale refineries like those operated by the Dangote Group.
Speaking at the report’s launch, AFC chief economist Rita Babihuga-Nsanze pointed out that supply routes are increasingly at risk due to geopolitical chokepoints.
She referenced the Strait of Hormuz—a passage responsible for about one-fifth of global fuel shipments—which has been severely disrupted by the ongoing Middle East conflict.
This has left import-dependent regions, particularly in East Africa, facing acute fuel shortages.
The report also highlighted broader infrastructure and supply challenges across the continent, including fertiliser shortages tied to disrupted Gulf exports and inefficiencies in energy systems.
Source: UGC
FCCPC alleges price fixing by Nigerian airlines
Meanwhile, Legit.ng earlier reported that the FCCPC said it found evidence of price fixing and possible fare manipulation by some domestic airlines during the December 2025 festive period.
The commission's report found patterns suggesting price fixing by some domestic airlines during the 2025 Yuletide season, despite stable fuel prices, taxes and exchange rates during the period.
The FCCPC clarified that seasonal demand and operational constraints are still being considered before reaching conclusions.
Source: Legit.ng
