Airlines Operators of Nigeria describe the refinery as a “lifesaver” amid global supply disruptions, but allege marketers are creating scarcity despite adequate supply from the facility operating at 650,000 barrels per day capacity.

The Dangote Petroleum Refinery and Petrochemicals currently supplies over 95% of all Jet A1 fuel consumed domestically while exporting approximately 1.1 billion litres, or 876,000 tonnes, of aviation fuel to Europe between March and April 20, according to the Airlines Operators of Nigeria, which described the refinery as a critical pillar of Nigeria’s aviation industry.

AON spokesperson Obiora Okonkwo disclosed during a televised interview, stating that the refinery’s output has been instrumental in sustaining domestic airline operations amid global supply disruptions triggered by tensions in the Middle East and rising fuel costs. Europe has roughly six weeks of jet fuel reserves remaining after the ongoing US-Iran war effectively shut down the Strait of Hormuz, which historically funneled close to 40% of Europe’s aviation fuel imports, according to International Energy Agency executive director Fatih Birol, who warned that flight cancellations are coming soon if Middle East supplies are not restored. April shipments of jet fuel from Nigeria to Europe reached approximately 66,000 barrels per day, the highest level ever recorded, according to data from Kpler and LSEG.

“It is a matter of fact that over 95% 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,” Okonkwo said. The refinery, which began operations in late 2023 and runs at its nameplate capacity of 650,000 barrels per day, exported about 89,000 barrels per day of jet fuel across 2025. Export data shows approximately 456,000 tonnes shipped in March and a further 420,000 tonnes exported as of April 20, reflecting growing refining capacity and improved logistics that reinforce Nigeria’s position in the global downstream oil market.

Despite the refinery’s consistent output, Okonkwo said airlines continue to face severe operational strain due to escalating Jet A1 prices, which he attributed to sharp practices within the downstream distribution chain. He alleged that some fuel marketers were creating artificial scarcity despite adequate supply from the refinery, resulting in price hikes of up to 300% since the onset of the Middle East crisis. “We consider this exploitation. The refinery has not indicated any shortage, yet we are witnessing artificial scarcity and unjustifiable price increases. What airlines pay does not reflect depot prices,” he said, suggesting the presence of racketeering in the market.

Air Peace Chairman and Chief Executive Officer Allen Onyema echoed those concerns after a closed-door meeting between the AON and the Federal Government, describing the pricing situation as deeply troubling, given that the Dangote refinery sells its products at comparatively lower rates than what airlines are being charged. “The truth is that marketers must be called to account. How do prices rise by as much as 300% when Dangote’s supply remains the cheapest and some marketers source directly from the refinery?” Onyema asked.

The situation highlights a structural paradox within Nigeria’s energy market: the persistence of intermediary bottlenecks even after domestic refining capacity has improved. While the Dangote facility has reduced dependence on imports, a key vulnerability in the past, it has not fully insulated end-users from pricing opacity. Nigeria’s aviation sector remains caught between relief and strain, buoyed by reliable supply from the Dangote refinery yet challenged by a pricing structure that continues to defy basic supply-demand logic.

Stay Informed: Visit our website for Breaking News, Intelligence, and Insight.