DistantNews
🇳🇬 Nigeria /Economy & Trade

Reps Urge FG to Address Rising Aviation Fuel Costs Amid Airline Struggles

From The Punch · (6m ago) English Critical tone

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • Nigerian lawmakers urged the Federal Government to intervene in the escalating cost of aviation fuel, citing severe financial pressure on domestic airlines.
  • The House of Representatives highlighted that jet fuel constitutes 40-60% of operating expenses, leading airlines to reduce flights or ground aircraft.
  • Lawmakers called for price stabilization, FX allocation for airlines, and investigations into persistent price increases, warning of economic consequences if major carriers collapse.

The Nigerian House of Representatives has sounded the alarm over the crippling cost of aviation fuel, a critical issue threatening the survival of domestic airlines. Lawmakers pointed out that jet fuel alone accounts for a significant portion of operational expenses, forcing carriers to scale back services and potentially face collapse.

airline operators are struggling for survival while also offering quality services together with the Nigeria Civil Aviation Authority to Nigerians amidst the spiralling costs.

— Paschal AgbodikeDuring a plenary session, Paschal Agbodike, who represents Ihiala Federal Constituency of Anambra State, highlighted the financial strain on airlines.

This situation, exacerbated by foreign exchange liquidity challenges impacting aircraft parts procurement, has placed immense pressure on Nigerian airlines. The potential collapse of these carriers could have dire consequences for the national economy, employment, and regional integration, underscoring the urgency of government intervention.

The House has called for immediate action, including a price-stabilization arrangement for jet fuel and prioritizing foreign exchange allocation for airlines. Committees have been mandated to investigate the persistent price hikes, while the Minister of Aviation is tasked with presenting an emergency roadmap to reduce costs. The Central Bank of Nigeria is also expected to facilitate FX allocation for airline operations and maintenance.

The House is concerned that many domestic airlines have been forced to reduce their flight frequencies or ground aircraft entirely, leading to reduced capacity.

— House of RepresentativesThe lawmakers expressed concern over the impact of rising costs on airline operations.

Industry operators report that aviation fuel prices have sometimes exceeded ₦1,200 per liter, compelling airlines to raise fares, cut routes, and suspend operations. The rising costs are attributed to global crude oil volatility, limited local refining capacity, deregulation, and persistent foreign exchange shortages.

We are concerned that the continued instability in jet fuel pricing, if not urgently addressed, could lead to the collapse of major domestic airlines, a scenario that would have devastating consequences for the national economy, employment, and regional integration.

— House of RepresentativesThe resolution warned of the severe economic repercussions if the issue of jet fuel pricing is not urgently addressed.
DistantNews Editorial

Originally published by The Punch in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog