Why are Nigerian domestic airlines threatening to halt flights despite the Dangote refinery being operational and producing jet fuel?

Nigerian domestic airlines are threatening to halt flights because jet fuel prices have surged to 3,300 naira ($2.44) per litre — nearly triple the February level — due to global energy disruptions from the Iran war, logistics and storage costs, and Nigeria's fully deregulated fuel market with no government subsidies; although Dangote sells jet fuel domestically at 1,879 naira ($1.39) per litre (similar to imported fuel prices), this price still contributes to unsustainable operating costs for airlines that consume ~2.1 million litres per day while Dangote exports the bulk of its 24 million litres daily output abroad.

What structural constraints prevent the Dangote refinery from using Nigerian crude oil and supplying more jet fuel domestically?

Dangote cannot rely on Nigerian crude because the state oil company NNPC’s joint-venture crude is tied to oil-backed loans and pre-export debt repayment agreements, diverting an estimated ~400,000 barrels per day of Nigeria’s ~1.5 million bpd production to repay international oil majors, banks, and traders; as a result, Dangote imports most of its crude from the U.S., Brazil, and other African producers, making it economically advantageous to export high-margin jet fuel — especially to Europe, where buyers pay premiums ahead of summer travel demand — rather than prioritize domestic supply.

ChemBrief

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