LCCI suggests local refining of Jet-A1 fuel to resolve aviation sector crises

By allcitynews.ng

Concerned on the crises that have been rocking the ship of aviation sector, the leadership of Lagos Chamber of Commerce and Industry (LCCI) has called for local refined of Jet-A1 fuel.

The Director General, Dr. Chinyere Almona, Lagos Chamber of Commerce & Industry, who this known, adding that the suggestion is becoming imperative following the crisis in Nigeria’s aviation industry which has reached a problematic level as domestic airlines are faced with an astronomical hike in the price of aviation fuel, with the commodity rising from N300 per litre to over N800 per litre within five months.

She noted that the challenging operating environment has led to an unprecedented increase in airfares and continuous delays and flight cancellations by domestic airlines. The Federal Government has stated that there are no immediate solutions to the crisis currently rocking Nigeria’s aviation sector, claiming the issues are global.

Furthermore the DG said “Recently, the umbrella body for domestic airlines in the country, Airline Operators of Nigeria (AON), notified air transport passengers that the sector was experiencing a significant crisis. This crisis was (and still is) an acute scarcity of aviation fuel (Jet A1), which has caused intermittent flight delays and cancellations.

“Some airlines have been forced to shut down operations due to the harsh operating environment. With the rising insecurity that has bedevilled our road transport system, a safer option is air transportation. This portends challenges around the movement of goods and business conduct across locations. The Government cannot afford to allow this sector to suffer from these crises.”

Operators in the industry are faced with a double whammy issue of foreign exchange scarcity and the high cost of aviation fuel, Jet-A1, which is a significant cost component in airline operations.

“We have noted that from the beginning of the year, aviation fuel scarcity has remained a persistent and unresolved problem that has impacted the cost-of-service delivery, as reflected in the rising cost of flights. Aviation fuel prices have risen from an average of N400/litre as of February to about N800/litre in recent times. With the business community not sure of any intervention to provide respite, the woes of the airline operators.”

The organised private sector urges the Government to take immediate steps toward resolving the crises in the aviation sector. Air transportation is considered one of the safest channels considering the despicable level of insecurity in the country. Hence, resolving the continued fuel crisis facing the safest transport channel is critical for the business community.

While the Government tackles terrorists, bandits, and kidnappers who have taken over major highways in the country, the Government must immediately consider involving the CBN and the NNPC in making FOREX available for aviation fuel imports.

However, the more sustainable solution would be refining Jet-A1 fuel for our local consumption. While we acknowledge that the current energy crisis is real and global, it is aggravating in Nigeria because we do not produce the oil.

The aviation sector qualifies for targeted financing to facilitate economic activities in the country, boost economic growth and avert an imminent recession.