Dangote’s Refinery Jet Fuel Hits 57 Million Barrels, portraying a growing role of petroleum export in Nigeria’s energy sector amidst surge in global prices.
Kano —
The Dangote Petroleum Refinery has exported an estimated 57 million barrels of jet fuel between April 2024 and April 2026.
This was according to Kpler data cited during Channels Television’s Business Morning programme on Thursday.
The data revealed that exports move from about 20,000 barrels per day in April 2024 to around 65,000 barrels per day by the end of 2024, before rising to approximately 160,000 barrels per day during the period under review.
The figures portray the growing role of refined petroleum export in Nigeria’s energy sector, particularly aviation fuel, as the country seeks to develop local refining capacity and reduce reliance on imported products.
Dangote’s Refinery Jet Fuel Export Hits 57 Million Barrels
Speaking during the programme, Dumebi Oluwole, Manager at Financial Derivatives Company Limited (FDC), described the development as an important milestone for Nigeria’s energy sector.
“It’s a big deal because it strengthens Nigeria’s external balance position,” she said, noting that exporting refined products represents a major step in value addition within the oil and gas sector.
She further noted that refined petroleum products generate greater economic value than crude oil exports because they serve industries and households directly.
“What we use on a daily basis that has the high demand for industries and households is the refined product. If Nigeria does not add value to its natural resource, we will still make a lot less in terms of export revenue,” she added.
Dangote’s Refinery Jet Fuel Export Hits 57 Million Barrels
Aviation Fuel Crisis Lingers
The export growth comes amid persistent concerns within Nigeria’s aviation sector over the rising cost of Jet A1 fuel.
There has been mounting pressure on domestic airlines as aviation fuel prices surged sharply in recent months, triggering warnings of possible disruptions and operational shutdowns.
Many operators, including Air Peace, United Nigeria Airlines and Ibom Air, have raised concerns over soaring Jet A1 costs, saying the situation has strained airline operations and affected flight schedules.
However,the Minister of Aviation and Aerospace Development, Festus Keyamo, intervened after airline operators warned that continued increases in fuel prices could led to the shutdown of some airlines.
Dangote’s Refinery Jet Fuel Export Hits 57 Million Barrels
Despite those interventions, airlines have continued to report operational challenges linked to fuel costs, including delays, cancellations and reduced flight frequencies.
Quest For More Refining
Speaking on the Dangote Refinery’s export performance, Ms Oluwole cautioned against viewing the development as sufficient on its own to transform Nigeria’s refining sector.
“What Dangote Refinery has done is a stellar performance and a very big deal for the company. But Nigeria as a nation cannot necessarily ride on the success of the Dangote Refinery alone,” she noted
She said that investors remain cautious about Nigeria’s refining ambitions given the country’s long history of failed refinery rehabilitation efforts and underperforming state-owned facilities.
She stated that sustained refining output and broader industry reforms would be necessary for Nigeria to fully realise the economic benefits of local refining.
Dangote’s Refinery Jet Fuel Export Hits 57 Million Barrels
Ms Oluwole noted that refined petroleum exports could significantly increase the contribution of the oil sector to Nigeria’s economy if refining capacity continues to improve.
She further emphasized that refined petroleum products could become strategically important to Nigeria’s export earnings over time if the country succeeds in expanding domestic processing capacity.
On global oil prices, Ms Oluwole said geopolitical tensions between Iran and the United States are likely to keep the oil market volatile in the near term.
She also highlighted that Brent crude prices could remain around $100 to $105 per barrel unless there is clearer progress in ceasefire negotiations and easing tensions in the Middle East.
Nigeria’s giant Dangote refinery is benefiting from record margins for producing jet fuel that it is mostly selling abroad, while the domestic airlines it also supplies have threatened to stop flying because of the surge in fuel prices.
Dangote’s Refinery Jet Fuel Export Hits 57 Million Barrels
The refinery which is the largest on the continent, was built to turn Africa’s biggest oil producing position into a net exporter of refined products,put an end to Nigeria’s reliance on fuel imports, and shield its economy from global energy shocks.
It became fully operational at the start of this year and is producing at its maximum capacity of 650,000 barrels per day.
That has improved local fuel availability but domestic fuel prices are still among the highest in Africa as Nigeria’s market is fully deregulated, meaning fuel prices are not subsidised by the government as they are in most African countries.
The issue is further complicated by the state oil company’s long-standing debt repayment agreements that mean Dangote has to import most of its crude oil, making it easier to balance its books if it sells abroad
Dangote’s Refinery Jet Fuel Export Hits 57 Million Barrels
The Middle Eastern conflict has led to unprecedented energy disruption and the risk of jet fuel shortages is looming.
Airlines around the world have hiked prices, added fuel surcharges and grounded planes.
Dangote plans to list shares in the coming months and is expanding the complex to 1.4 million bpd capacity, which could make it the world’s largest refinery by the end of the decade.
Dangote’s Refinery Jet Fuel Will Boost Market Stability-NMDPRA
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has stated that the newly announced gantry price for aviation fuel by the Dangote Refinery will help stabilise the market and encourage compliance among fuel marketers.
Dangote’s Refinery Jet Fuel Export Hits 57 Million Barrels
This was revealed by the agency’s Director of Public Affairs, George Ene-Ita,during a stakeholders meeting in Abuja.
He explained that the pricing move would support ongoing regulatory monitoring and improve transparency within the aviation fuel market.
The announcement comes amid growing complaints from airlines and industry stakeholders about the high cost of jet fuel and its impact on operations and ticket prices.
Earlier, the NMDPRA introduced price guidelines for Jet A1 to ease pressure on operators and passengers. It also directed marketers to sell directly to airlines, setting price ranges between N1,760 and N1,988 per litre in Lagos, and N1,809 to N2,037 per litre in Abuja.