NIGERIAN AIRLINES CHOOSE DANGOTE REFINERY FOR JET FUEL SUPPLY, FG BACKS NAIRA-FOR-CRUDE DEAL
Detailed Breakdown:
1. Airline Operators' Decision: Nigerian airline operators voluntarily opted to purchase Jet A1 fuel exclusively from the Dangote Refinery. This decision, which received the Aviation Minister Festus Keyamo’s support, aims to reduce reliance on foreign fuel imports and stabilize fuel prices.
2. Clarification on Government Involvement: Keyamo clarified that the government has not mandated Dangote as the sole supplier. Instead, it is the airlines' independent decision, benefiting from the federal government's new crude-for-naira sales arrangement with Dangote Refinery, which eliminates foreign exchange concerns.
3. Private Refinery Model: Aliko Dangote highlighted the success of his privately funded refinery, built without government incentives. He advocates for making Nigeria a refining hub, reducing reliance on imported refined products, and boosting the nation's economy through exports.
4. Naira-For-Crude Deal: The federal government’s commitment to selling crude oil to Dangote and other refineries in naira was reiterated, a move designed to reduce pressure on foreign currency reserves and ensure fuel price stability.
5. Industry Leaders' Input: Industry experts, including IPPG Chairman Abdulrazak Isa, urged the government to stop crude oil imports, given Nigeria’s abundant hydrocarbon resources. Expanding local refining capacity is seen as crucial for national energy security.
This collective effort marks a significant shift toward local refining and reduced dependency on international oil markets.
Detailed Breakdown:
1. Airline Operators' Decision: Nigerian airline operators voluntarily opted to purchase Jet A1 fuel exclusively from the Dangote Refinery. This decision, which received the Aviation Minister Festus Keyamo’s support, aims to reduce reliance on foreign fuel imports and stabilize fuel prices.
2. Clarification on Government Involvement: Keyamo clarified that the government has not mandated Dangote as the sole supplier. Instead, it is the airlines' independent decision, benefiting from the federal government's new crude-for-naira sales arrangement with Dangote Refinery, which eliminates foreign exchange concerns.
3. Private Refinery Model: Aliko Dangote highlighted the success of his privately funded refinery, built without government incentives. He advocates for making Nigeria a refining hub, reducing reliance on imported refined products, and boosting the nation's economy through exports.
4. Naira-For-Crude Deal: The federal government’s commitment to selling crude oil to Dangote and other refineries in naira was reiterated, a move designed to reduce pressure on foreign currency reserves and ensure fuel price stability.
5. Industry Leaders' Input: Industry experts, including IPPG Chairman Abdulrazak Isa, urged the government to stop crude oil imports, given Nigeria’s abundant hydrocarbon resources. Expanding local refining capacity is seen as crucial for national energy security.
This collective effort marks a significant shift toward local refining and reduced dependency on international oil markets.