Nigeria has become Europe's largest jet fuel supplier, but domestic airlines struggle with fuel shortages.
Nigeria's Dangote refinery, the largest in Africa, produces 24 million liters of jet fuel daily, much of which is exported to Europe. This shift follows the closure of the Strait of Hormuz, which disrupted Middle Eastern supplies to Europe. Over the past two months, Nigeria has become Europe's largest supplier of jet fuel, surpassing the United States. The 650,000 barrel-per-day refinery, owned by Africa's richest man, Aliko Dangote, has become a critical source of fuel for the continent following supply disruptions caused by the Iran war.
Despite increased production, Nigerian airlines face challenges due to high domestic fuel prices and competition from international buyers. The country's deregulated fuel market prioritizes higher-paying global customers over local airlines, exacerbating domestic shortages. In the fully deregulated Nigerian market, regional airlines also have to compete with international buyers, who typically place orders for greater purchasing volumes, often without any middlemen involved between them at the refineries. This dynamic leaves global players with significant negotiating advantages compared to smaller local companies.
Why it matters
The export of jet fuel to Europe may strain domestic availability for Nigerian airlines due to rising prices and market pressures.
This section reflects Dumpling editorial interpretation and is provided for context only.
What to watch
Watch for Nigerian government policies that may regulate jet fuel distribution to balance domestic and international needs.
This section reflects Dumpling editorial interpretation and is provided for context only.