Nigeria’s Domestic Airlines to Shun Imported Fuel, Boost Local Industry
In a move aimed at supporting local industries and stabilizing fuel costs, Nigeria’s domestic airlines have decided to shun imported Jet A1 fuel and instead buy from Dangote Petrochemical Refinery. According to Festus Keyamo, the Minister of Aviation and Aerospace Development, this decision is expected to lead to a significant drop in air ticket prices in Nigeria.
The Airline Operators of Nigeria (AON) made the decision after a meeting, where they agreed to support the local industry by buying fuel from Dangote Refinery. Keyamo emphasized that this move will eliminate the headwinds of oil prices in the international market, allowing for more predictable fuel costs and lower prices for consumers.
The Federal Government has also confirmed that the sale of crude oil to Dangote refinery and other refineries in naira will commence on October 1. This policy aims to stabilize pump prices, potentially resulting in lower and more predictable fuel costs for consumers. Transactions in naira rather than dollars will ease pressure on foreign exchange reserves, leading to the stabilization of the dollar-naira exchange rate and control of inflation.
Keyamo highlighted that the move will provide access to cheaper jet A1 fuel, which will have a positive impact on the aviation industry. The minister expressed confidence that the decision will benefit both the airlines and consumers, leading to a more stable and predictable fuel market.
This development is seen as a significant step towards promoting local industries and reducing reliance on imported goods. As Nigeria’s economy continues to evolve, initiatives like this will play a crucial role in shaping the country’s future and improving the lives of its citizens.
