Aliko Dangote's refinery now supplies 95% of Nigeria's jet fuel. Airlines say middlemen are still price-gouging

Aliko Dangote's refinery is keeping Nigerian airlines in the air. What happens between the refinery gate and the aircraft fuel tank is a different story entirely.

The Airline Operators of Nigeria has formally identified the Dangote Petroleum Refinery and Petrochemicals as the backbone of the country's aviation fuel supply, confirming that the facility now accounts for more than 95% of Jet A1 fuel consumed nationwide. The endorsement is significant. Less than two years ago, Nigeria imported the overwhelming majority of its aviation fuel. The refinery has inverted that entirely.

AON spokesperson Obiora Okonkwo was direct about what the facility means for domestic carriers. "To airline operators in Nigeria, Dangote is not just a refinery. It is a game changer and, indeed, a lifesaver," he said during a televised interview. The refinery's consistent output has kept domestic flights operating through a period of severe global supply disruption triggered by the effective closure of the Strait of Hormuz following the outbreak of the US-Iran conflict.

The international numbers back that up. Between March and April 20, the Dangote refinery exported approximately 1.1 billion liters of aviation fuel to Europe, at a time when the continent was scrambling to replace supplies normally sourced from the Gulf. The breakdown runs to roughly 456,000 metric tonnes in March and an additional 420,000 metric tonnes by April 20. Nigeria, a country that spent decades importing refined products, is now a swing supplier for European aviation.

The problem is what is happening on the domestic side of that equation. Okonkwo told the interviewer that despite the refinery's steady output and comparatively lower depot prices, Nigerian airlines have seen Jet A1 costs rise by up to 300% since the Middle East crisis began. He attributed the surge not to any shortage from the refinery but to practices within the downstream distribution chain, alleging that some fuel marketers are manufacturing artificial scarcity to drive prices far above what the supply situation would justify. "What airlines pay does not reflect depot prices," he said, describing the situation as exploitative and suggesting the presence of racketeering in the market.

Allen Onyema, chairman and chief executive of Air Peace, echoed that reading after a closed-door meeting between the AON and the Federal Government. He put the question plainly: "How do prices rise by as much as 300% when Dangote's supply remains the cheapest and some marketers source directly from the refinery? So, why the astronomical increase?"

The Federal Government has not yet announced a specific enforcement response to the pricing allegations, and no fuel marketers have publicly responded to the racketeering characterization. The pressure on Abuja to act is building, with airlines arguing that the structural gain delivered by domestic refining is being captured at the distribution level before it reaches the people who actually need it.

Dangote's refinery has delivered on the supply side of the equation. The distribution chain has not kept pace with what the refinery has built.