Airlines, marketers’ frustration mounts on local sourcing of Jet-A1

• Locally sourced Jet fuel more expensive than imported fuel-CITA GMD
• Jet A1 market to grow through 2030-Ex-FAAN MD

The Group Managing Director of CITA Energies, Dr Thomas Ogungbangbe, has echoed the frustration of aviation fuel marketers, stressing that despite the expectations, the reality experienced by aviation fuel marketers since Dangote’s refinery commission has been far more complex and constrained.

According to him, dependence on imports continues as 40% of Jet-A1 is still, saying that although production has begun, a steady domestic supply of aviation-grade Jet A-1 has been slower than expected.

Speaking at a colloquium at the weekend with the theme, “Aviation Fuel Business in Nigeria – The Scenario and the Metaphor, Ogungbangbe said that while the refinery has the installed capacity to produce aviation fuel, the practical rollout of refined Jet A-1 into the domestic market has been slower and more restrictive than anticipated.

On the current reality, he disclosed that Jet A-1 from the Dangote Refinery is not yet cheaper than imported alternatives, noting that the refinery sells in U.S. dollars, aligning prices with global benchmarks.

He hinted that the expected cost relief for airlines and marketers has not materialised, with airlines continuing to face high operational costs.

He further lamented that marketers have limited direct access to jet fuel supply, with distribution still structured through controlled offtake agreements.

The broader market implication, according to him, is that independent and smaller aviation marketers remain dependent on intermediaries or imports.

 As Foreign Exchange exposure persists, he said, because the refinery prices are in US dollars, aviation fuel marketers must still source foreign exchange, defeating the earlier expectation of Naira-based transactions, alleging that airlines and marketers still rely partly on imported products to bridge shortfalls.

His words, “Uncertainty in pricing and market operations discourages long-term planning. As the refinery seeks to recoup its investment, it maintains export-oriented pricing, limiting domestic price advantage. Local consumers, including aviation, are yet to feel the economic relief anticipated.”

Speaking further of the quality of aviation fuel in the country, the CITA chief expressed grave concerns about the mislabeling of kerosene as Jet A1.

He lamented that the situation poses serious risks, including engine failure, thermal instability, and contamination, pointing out that enforcing certification and traceability protocols at every supply chain stage is vital to prevent such occurrences.

The rise of modular refineries, he further stated, presents challenges in consistently meeting DEF STAN 91-91 and ASTM D1655 standards, saying success depends on thorough quality control, third-party certification, and alignment with global testing protocols.

“While major marketers such as TotalEnergies, MRS, and CITA Energies maintain ISO-certified QA systems, traceability is fragmented due to manual processes. A digital platform linking refineries, depots, and airlines would enhance real-time visibility and accountability. Establishing Joint Quality Audit Committees with representatives from refineries, marketers, NCAA, and airlines is critical for regular quality reviews and ensuring industry-wide standards.”

He, however, disclosed that Nigeria offers some of the lowest Jet A1 prices in West Africa, influenced largely by Dangote Refinery’s impact and local supply efficiencies rather than competitive market forces alone.

“Although claims of marketer collusion are anecdotal, oligopolistic behaviour exists due to high barriers to entry. Expanding refining capacity and encouraging new market entrants can foster competition. A public pricing template detailing cost components such as crude, refining, logistics, forex rate, and margins would build trust between airlines and marketers.”

Ogungbangbe stated that the evolution of aviation fuel in Nigeria mirrors the nation’s own journey — from dependency to determination, from challenges to change, saying that the advent of indigenous refineries may redefine the supply chain, but noted that it is, “Our collective vision, collaboration, and integrity that will define the future.”

Air transport specialist and a former Managing Director of the Federal Airports Authority of Nigeria (FAAN), Dr Richard Aisuebeogun, posited that passenger traffic in Nigeria continues to rise, driven by connectivity, tourism, infrastructure investment, and economic diversification.

He stated that the Jet A-1 market is projected to grow steadily through 2030, underpinned by domestic refining, infrastructure reforms, and regulatory consistency.

To secure the future of Nigeria’s aviation fueling industry, Aisuebeogun said the country must pursue three key pathways, such as investment in Sustainable Aviation Fuel (SAF) and renewable energy innovations, strengthening standards, enforcement, audits and encouragement of joint ventures, shared infrastructure, and bulk procurement for stability and fair competition.

Wole Shadare