The Airlines Operators of Nigeria (AON) has lauded the Dangote Petroleum Refinery and Petrochemicals as a vital support for Nigeria’s aviation industry.

The refinery is reported to supply over 95 percent of the Jet A1 fuel consumed nationwide, while also making a significant mark on the international market by exporting approximately 1.1 billion litres (or 876,000 tonnes) of aviation fuel to Europe between March and April 20.

This substantial output has played a crucial role in sustaining domestic airline operations amidst global supply disruptions and heightened tensions in the Middle East.

AON spokesperson, Obiora Okonkwo, emphasized the refinery’s impact, stating, “It is a matter of fact that over 95 per cent of aviation fuel supplied across the country comes from the Dangote refinery.

To airline operators in Nigeria, Dangote is not just a refinery; it is a game changer and, indeed, a lifesaver.”

Despite this consistent supply, Nigerian airlines are grappling with severe operational strain due to escalating Jet A1 prices, with operators reporting hikes of up to 300 percent since the onset of the Middle East crisis.

Okonkwo has attributed these price increases to alleged “sharp practices” within the downstream distribution chain, suggesting that some fuel marketers are creating artificial scarcity despite readily available supply from the Dangote refinery.

He described this situation as “exploitation” and hinted at racketeering, noting that the prices airlines pay do not reflect actual depot prices.

The Dangote Refinery’s growing refining capacity and improved logistics have reinforced Nigeria’s position in the global downstream oil market, yet domestic pricing issues persist.

Beyond Nigeria, a report from the Africa Finance Corporation (AFC) highlights a broader continental vulnerability to fuel shortages. The report indicates that Africa is heading for an 86-million-tonne fuel shortfall by 2040.

Currently, Africa imports over 70 percent of its refined fuel, and approximately $230 billion worth of essential goods, including fuel, food, plastics, steel, and fertilizer, annually.

This dependence on fuel imports is projected to increase from 74 million tonnes in 2023 to 86 million tonnes by 2040, a volume equivalent to nearly three of the giant Dangote-scale refineries.

The AFC’s chief economist, Rita Babihuga-Nsanze, noted the continent’s susceptibility to fuel chokepoints, citing the Strait of Hormuz as a critical example.

The Middle East war has effectively impacted this strait, which accounts for a fifth of global fuel transport, leaving import-dependent countries in East Africa facing critical shortages.

The region is also experiencing shortages of fertilizer due to its reliance on imports from the Gulf, further exacerbating the impact of geopolitical conflicts.

Compounding these challenges are issues related to infrastructure and climate change, with examples such as Zambian dams proving inadequate for new drought conditions, and two gigawatts of Angolan hydropower not being connected to the regional grid, leading to wasted energy resources.

These factors collectively paint a picture of significant energy insecurity across the African continent.