As Nigeria grapples with rising demand for aviation fuel, its dependency on imports for Jet A-1 fuel has reached critical levels, impacting airlines, ticket prices, and passenger volume. Despite being an oil-rich country, Nigeria’s refining capacity for aviation fuel falls drastically short of its needs, creating a reliance on costly imports. This situation calls for a closer look at aviation fuel’s composition, the refining process, and the measures Nigeria’s government is implementing to bridge the supply gap.
The Composition and Types of Aviation Fuel
Aviation fuel is specially designed for aircraft engines, and Jet A-1 is the most commonly used type globally. Unlike standard gasoline, aviation fuel must withstand high altitudes, extreme temperatures, and fast-paced combustion, requiring a blend of hydrocarbons derived from crude oil. Jet A-1 fuel is highly refined, with low freezing and flash points, making it suitable for both commercial and military aircraft.
Apart from Jet A-1, there is also Avgas (aviation gasoline), which is mostly used in smaller aircraft with piston engines. However, Jet A-1 dominates the market, given its application in jet and turbine engines. Its refined quality means it is costlier to produce, placing pressure on economies like Nigeria that lack the infrastructure to refine it domestically at scale.
Refining Process and Nigeria’s Current Capacity
The production of Jet A-1 fuel involves a multi-step refining process beginning with the distillation of crude oil. Components are selectively separated and treated to meet aviation fuel standards, including specific distillation points, low sulphur content, and controlled volatility. Hydrodesulfurisation is an essential process that removes sulphur to ensure the fuel remains stable at high altitudes.
Nigeria’s four state-owned refineries Port Harcourt, Kaduna, Warri, and the newly launched Dangote Refinery possess minimal capability for refining aviation fuel, leading to a heavy reliance on imports. Recent government reports indicate that less than 10% of Nigeria’s aviation fuel demand is met by local refineries. Although the Dangote Refinery is expected to have the potential for refining Jet A-1 fuel, it is still in the early stages of scaling its production for such specialised fuel.
The Dangote Refinery’s Impact on Nigeria’s Aviation Fuel Supply
The Dangote Refinery, operational since early 2024, has become a game-changer for Nigeria’s aviation fuel landscape. This massive facility, one of the largest in Africa with a capacity of 650,000 barrels per day, now supplies two-thirds of Nigeria’s jet fuel needs and nearly half of the jet fuel consumed across West Africa. Since beginning production in March, the Dangote Refinery has produced over 1.1 million tonnes of jet fuel, with a significant portion exported to Europe, South America, and West African markets.
Domestic supply improvements have enabled Nigerian airlines to source jet fuel locally at more stable prices, reducing the need for costly imports. According to Nigerian aviation authorities, sourcing from Dangote Refinery has lowered the nation’s jet fuel imports from 13,000 barrels per day in 2023 to around 5,000 barrels per day in 2024, helping stabilise the aviation market. This shift has also eased foreign exchange pressures, with some transactions now conducted in local currency, providing greater price stability for Nigerian airlines.
Meeting Demand Through Imports: Current Types and Quantities
Nigeria’s annual demand for aviation fuel currently hovers around 1.5 million metric tonnes, most of which is imported. The price of imported Jet A-1 fuel has surged, driven by foreign exchange fluctuations, import logistics, and global oil prices. This cost increase has had a significant impact on Nigeria’s aviation industry, with many airlines experiencing operational strains and passing costs on to consumers in the form of higher ticket prices.
Currently, Jet A-1 imports cover nearly 90% of Nigeria’s aviation fuel needs, which fluctuates based on seasonal airline traffic, government policies, and regional supply chain issues. Import quantities have been inconsistent, further exacerbating supply instability and affecting airline schedules.
Government Measures to Address the Aviation Fuel Crisis
In response to the ongoing crisis, Nigeria’s government has introduced several measures aimed at reducing dependency on imported aviation fuel. Chief among these is the planned revitalisation of the Port Harcourt, Kaduna, and Warri refineries to enhance local refining capacity. In addition, the Nigerian National Petroleum Corporation (NNPC) has announced partnerships with private investors to boost domestic aviation fuel production, including plans for specialised production facilities for Jet A-1 fuel.
The government has also implemented foreign exchange support measures to help importers manage the cost of acquiring aviation fuel. By offering preferential exchange rates, the Central Bank of Nigeria (CBN) aims to stabilise fuel import costs and provide more predictability for the aviation sector.
Furthermore, the Nigerian Civil Aviation Authority (NCAA) has engaged in dialogue with airlines and fuel marketers to encourage stockpiling during periods of price stability, minimising supply disruption risks. There are also discussions around potential subsidies or fuel price capping, though these have yet to be formalised.
The Future of Aviation Fuel in Nigeria: Towards Self-Sufficiency
While Nigeria’s short-term measures aim to stabilise aviation fuel supply, the long-term solution lies in achieving greater refining self-sufficiency. The development of specialised refining capacity for Jet A-1 fuel, supported by public-private partnerships, is crucial for sustainable growth in Nigeria’s aviation industry. There is a clear economic incentive to localise production, as this would reduce fuel costs for airlines, support the country’s foreign reserves, and create a more stable operating environment.
The country’s policymakers are also exploring incentives for research and development in alternative aviation fuels, such as sustainable aviation fuels (SAF) that align with global efforts to reduce carbon emissions in aviation. However, these efforts are in the nascent stages, and much work remains to be done to create a viable path towards fuel security in Nigeria’s aviation sector.
