Abuja says no solution now, but making efforts
By Jeph Ajobaju, Chief Copy Editor
Abuja says it does not at the moment have solution to the troubles in aviation, among them prohibitive cost of Jet A-1 (aviation fuel), lack of foreign exchange (forex), and high cost of aircraft maintenance which have combined to paralyse the sector.
Aviation Minister Hadi Sirika said the government is making efforts to address the challenges but he could not say when solutions would be on the ground.
Domestic airlines are up against the stiff challenge posed by aviation fuel which price has jumped from less than N300 per litre to over N800 in five months.
This has led to an increase in airfares by airlines that could manage to get the commodity amid delayed or cancelled flights but others, like Aero Contractors and Dana Air, have suspended operations.
“Energy crises is real and it is global. Today there is aviation fuel problem all over the world. From America to New Zealand. It is aggravated in Nigeria because we don’t produce the product,” Sirika said.
“It is aggravated also because the foreign exchange is scarce in Nigeria and the source of earning the foreign exchange has also has dwindled.”
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Multiple solutions required
Sirika reiterated the government has previously sourced 10,000 metric tonnes of aviation fuel for domestic airlines and is willing to do more, per The PUNCH.
“As we speak, the government is in the process of finding a permanent solution to this issue.
“Solutions would include importation of the product at the appropriate price, accelerating the refurbishment of our refineries and also wait for the coming on stream of Dangote Refinery to boost supply of the product.
“So when you ask how soon, I wouldn’t know when Dangote will come on stream, I wouldn’t know how soon the refineries will be fixed.
“I wouldn’t know when imports would become sufficient. But the government is working towards all these to happen.”
Sirika disclosed he would meet with stakeholders, including the Central Bank of Nigeria (CBN), to see how airlines could access forex at the official rate rather than in the black market.
Backstory
Airline Operators of Nigeria (AON) President Abdulmunaf Sarina recounted that the aviation fuel crises began with N180 per litre but has jumped to N1,000 to add to the huge burden of inability to access forex.
“The rate at which the dollar is escalating now is very alarming. Every day, a difference between of N10 to N15 naira is added at the parallel market. Last week Monday, it was N610 but today it is N670 to one dollar,” he lamented.
AON Vice President Allen Onyema said airlines are satisfied with government intervention but the solutions are not in the short term.