Domestic airlines in Nigeria have announced a landmark decision to stop purchasing imported Jet A1 fuel, opting instead to buy locally from the Dangote Petrochemical Refinery.

The move, expected to drive down airfares, has been confirmed by the Federal Government.

Read Also: Annie Idibia Slams Trolls, Who Said Tuface Will Impregnate More Ladies

According to the Minister of Aviation and Aerospace Development, Festus Keyamo, the decision by the Airline Operators of Nigeria (AON) is part of efforts to support local industry and stabilize fuel prices.

During an interview on Channels Television’s Political Paradigm, Keyamo disclosed that the AON, with backing from the government, has committed to sourcing all of their Jet A1 fuel from the newly commissioned Dangote Refinery.

“The Airline Operators of Nigeria have decided to stop purchasing imported fuel. Instead, they will buy Jet A1 from Dangote Refinery, which will provide cheaper and more stable fuel pricing,” Keyamo stated.

This development comes in the wake of the Federal Government’s recent policy to sell crude oil to local refineries, including the Dangote Refinery, in naira rather than foreign currency.

The policy, which took effect on October 1, aims to stabilize domestic fuel prices and reduce the nation’s reliance on the fluctuating international oil market.

By conducting transactions in naira, the pressure on Nigeria’s foreign exchange reserves is expected to ease, providing a much-needed boost to the economy.

Additionally, this shift is projected to help stabilize the exchange rate between the naira and the dollar, while curbing inflationary pressures linked to fuel imports.

Keyamo emphasized that this policy shift would protect Nigeria’s aviation industry from the volatility of global oil prices.

“With the purchase of Jet A1 fuel in naira, airlines will no longer be subjected to the unpredictability of international oil prices. This will result in lower operational costs for airlines and, ultimately, lower airfares for passengers,” he added.

The move is seen as a major step towards reducing operational costs for Nigerian airlines, as fuel typically accounts for a large percentage of their expenses.

With the availability of cheaper fuel, airline operators are expected to pass on the savings to consumers, potentially leading to a significant reduction in airfares across the country.

This decision aligns with broader government efforts to support local industries, reduce dependency on imports, and strengthen the Nigerian economy.

The Federal Government has enacted the Cape Town Convention (CTC) Practice, a move designed to lower operational costs for airlines in Nigeria’s aviation sector.

The CTC Practice Direction was signed on Thursday by Chief Judge of the Federal High Court, Justice John Tsoho, during a meeting of the Presidential Enabling Business Environment Council (PEBEC) at the Presidential Villa in Abuja, chaired by Vice President Kashim Shettima.

Read Also: Comedian Basketmouth Goes Public With New Lover[VIDEO]

This signing activates the full implementation of the Cape Town Convention in Nigeria, which is expected to reduce insurance premiums for airlines, improve investor confidence, and facilitate easier leasing of aircraft by domestic airlines.

This measure comes as the government reiterated that no Nigerian airline has been banned by the United States. Chris Najomo, acting Director General of the Nigerian Civil Aviation Authority (NCAA), noted that Nigeria attained category one status in the U.S. International Aviation Safety Assessment (IASA) programme in 2010 and passed re-evaluations in 2014 and 2017.

However, the country was removed from the list in 2022 for failing to meet updated requirements.

The implementation of the Cape Town Convention marks a major step toward revitalizing Nigeria’s aviation industry and making it more competitive globally.

He said, “It is important to clarify here that the de-listing of Nigeria has absolutely nothing to do with any safety or security deficiency in our oversight system. Nigeria has undergone comprehensive ICAO Safety and Security Audits and recorded no Significant Safety Concern (SSC) or Significant Security Concern (SSeC) respectively.

“It is furthermore necessary to add that a Nigerian operator can still operate into the U.S. using an aircraft wet-leased from a country who has a current Category One status.

“The NCAA continues to adhere strictly to international safety and security standards and respects the sovereignty of States, including the United States of America, as enshrined in Article One of the Convention on International Civil Aviation. This provision gives States complete and exclusive sovereignty over the airspace above their territories.”

Akwa Ibom State’s commercial airline  Ibom Air, has welcomed a new A220-300 series aircraft to its fleet.

At a ceremony to receive it at the Victor Attah International Airport on Tuesday, Governor Umo Eno declared that “every Akwa Ibomite should celebrate with pride”.

The governor who made the disclosure in a statement on his verified handle on micro-blogging, site, X, on Tuesday revealed the state’s plans for the Aviation sector.

ALSO READ: Akwa Ibom Court Upholds Female Inheritance Rights

According to Gov Eno, “This project is just one of the many ways we are working to position Akwa Ibom as a leading destination for both tourism and investment.”

He wrote, “Earlier today, we welcomed a new A220-300 series aircraft to the Ibom Air fleet during a ceremony at Victor Attah International Airport.

“This moment marks another significant milestone in the growth and expansion of Ibom Air, an achievement that every Akwa Ibomite should celebrate with pride. The addition of this aircraft not only enhances the efficiency of our airline’s operations but also underscores our commitment to excellence and innovation in the aviation sector.

“As part of our broader vision for Akwa Ibom’s aviation ecosystem, I also announced the upcoming construction of an Aviation Village near the airport. This development will provide essential amenities such as housing, schools, and hospitals for aviation workers, ensuring they are well-supported as we move towards 24-hour airport operations.

“This project is just one of the many ways we are working to position Akwa Ibom as a leading destination for both tourism and investment.”