Nigeria stands at a critical juncture in its quest for energy sustainability. The aviation sector, a vital component of the country's economy, is facing increasing pressure to reduce its carbon footprint.
Given the dire need for clean alternatives, Sustainable Aviation Fuel (SAF) has emerged as a vital solution that promises to reshape not only the aviation industry but Nigeria's overall energy landscape. However, this transition to renewable fuels presents both opportunities and challenges.
According to the International Air Transport Association (IATA), aviation accounts for approximately 2-3% of global human-induced carbon emissions, highlighting the urgent need for the industry to adopt more sustainable practices. In Nigeria, where the aviation sector has experienced rapid growth, the need for green alternatives becomes even more apparent. The country's reliance on conventional jet A-1 fuel highlights the twin challenges of environmental responsibility and energy security.
Nigeria's aviation sector currently uses Jet A-1 fuel, a kerosene-based product that is mainly imported to meet domestic demand. Dependence on imports makes the sector vulnerable to global price fluctuations and supply chain disruptions. Despite the growing presence of indigenous airlines, domestic refining capacities are inadequate, forcing Nigeria to import about 90% of its aviation fuel. Recent efforts to increase local refining capacities, such as the Dangote Refinery, promise to partially alleviate these concerns. However, as of now, fuel supply to the aviation sector is an ongoing challenge that directly impacts operating costs, ticket prices and service delivery. In the first quarter of 2024, Nigeria imported aviation fuel worth about 31 billion naira.
SAF offers a diverse approach to address these challenges, converting waste materials and agricultural by-products into aviation fuel. According to IATA, SAF can potentially reduce carbon emissions by up to 80% compared to conventional jet fuel. This reduction is particularly relevant to Nigeria's commitment to its Nationally Determined Contribution (NDC), which aims to reduce greenhouse gas emissions by 20% by 2030. Aligning the aviation sector with these goals is critical to achieving national and international climate objectives. Nigeria aims to achieve net zero emissions by 2060.
In addition to reducing greenhouse gases, SAF produces fewer harmful emissions such as sulfur oxides and particulate matter. Improving air quality, especially in urban centers, can have significant public health benefits, reducing health care costs associated with air pollution-related disease. The production of SAF will stimulate economic growth by creating jobs in new industries related to feedstock cultivation, fuel production and distribution. This transformation will increase agricultural productivity and provide sustainable income sources to rural communities. The transition to SAF will reduce Nigeria's dependence on imported fossil fuels, thereby enhancing energy security. Local resources can be used to stabilize Nigeria's fuel supply and protect itself from the volatility of global oil prices, making the aviation sector more resilient. Nigeria has a wealth of potential feedstock resources for the production of SAF, including abundant biomass from agriculture and forestry, waste oils and fats, and algae.
Nationally Determined Contribution, the NDC framework outlines Nigeria's commitment to reducing its carbon footprint through various sectors, including transportation. While the aviation sector has long been a contributor to emissions, integrating SAF into the fuel mix could significantly increase Nigeria's chances of meeting its climate targets. The government's Fly2Green initiative, which focuses on promoting renewable aviation fuels, underlines its commitment towards a sustainable future. Furthermore, the agricultural sector producing biomass suitable for SAF production could play an important role in this transformation. Leveraging agricultural waste will create a circular economy that will not only address environmental concerns but also promote food security. Nigeria is also exploring the adoption of low-carbon aviation fuels and sustainable aviation fuels to partially replace jet kerosene.
Globally, many countries have successfully integrated SAF into their aviation sectors, serving as valuable case studies for Nigeria. The United States aims to produce three billion gallons of SAF by 2030, making it a leader in sustainable aviation. The United Kingdom has mandated that at least 10% of all aviation fuel come from sustainable sources by 2030, showing strong government support for the transition. Beginning in 2026, Singapore will be required to use at least 1% of SAF for all departing flights, setting a benchmark for other countries.
While the promising potential of Sustainable Aviation Fuel (SAF) is evident, a number of challenges need to be addressed to facilitate its integration into Nigeria’s aviation sector. Currently, SAF is significantly more expensive than conventional jet fuel, presenting a financial barrier that discourages airlines from switching. To address this challenge, it is important for SAF to invest in research and development (R&D) initiatives focused on cost-effective production methods. This may include partnerships between government agencies, universities, and private companies to innovate cost-effective feedstock processing technologies.
Creating economies of scale is another essential step. As production volumes increase, costs generally decrease. The establishment of pilot projects or collaboration with international partners can help build a strong SAF market in Nigeria, thereby enabling gradual expansion of operations. Additionally, the development of necessary infrastructure, such as storage facilities and distribution networks, will be critical to support SAF adoption. The government may encourage investment in such infrastructure through grants or tax breaks for companies wishing to invest in SAF-related facilities.
The transition to sustainable aviation fuels is not just a technological upgrade; This represents a significant change in Nigeria's energy strategy. Nigeria has the opportunity to play a leading role in Africa by enhancing its energy security by using sustainable aviation fuels, aligning with its climate commitments, stimulating economic growth and demonstrating the feasibility of renewable energy solutions, while positioning Nigeria not only as a participant in the global green economy but also as a leader in sustainable energy initiatives across Africa.
Budgit, through its offices in the West African region, continues to lead high-level energy transition conversations, advocating for innovative solutions across economic sectors including natural resource governance, climate finance, equitable energy transition and climate justice.
Alice Adedayo Ige is a Research and Policy Analyst, Natural Resources and Climate Administration at BudgIT.
