Less than two months after Nigerian airline operators suspended their plan to shut down operation due to the high cost of aviation fuel, following intervention by players in the oil industry, the operators have once again announced their plan to halt airline activities for the same reason.

Aviation fuel known as Jet A1 now costs N700 per liter. The airline operators under their umbrella body, Airline Operators of Nigeria (AON), said the cost is no longer sustainable as they have been subsidizing their services since the last four months, increasing their operating cost.

The airlines in question; Air Peace, Dana Air, United Nigeria Airline, Arik Air, Azman, Overland Airways and Aero Contractors said while aviation fuel cost about 40 percent of an airline’s operating cost globally, the present hike has shot up Nigeria’s operating cost to about 95 per cent.

The body said in a statement that the cost of aviation fuel has rocketed from N190 per liter to the current N700, making it impossible for them to continue operation as it would mean charging as much N120,000 per a seat. A price they said Nigerians, under the current economic situation, cannot afford.

The statement reads: “It is with a great sense of responsibility and patriotism that the Airline Operators of Nigeria (AON) have carried on deploying and subsidising their services to our highly esteemed Nigerian flying public in the last four months despite the steady and astronomical hike in the price of Jet A1 and other operating costs.

“Overtime, aviation fuel price (JetA1) has risen from N190 per litre to N700 currently. No airline in the world can absorb this kind of sudden shock from such an astronomical rise over a short period. While aviation fuel worldwide is said to cost about 40% of an airline’s operating cost globally, the present hike has shut up Nigeria’s operating cost to about 95%.

“In the face of this, airlines have engaged the Federal Government, the National Assembly, NNPC and Oil Marketers with the view to bringing the cost of JetA1 down which has currently made the unit cost per seat for a one hour flight in Nigeria today to an average of N120,000. The latter cannot be fully passed to passengers who are already experiencing a lot of difficulties.

“While AON appreciates the efforts of the current government under the leadership of President Muhammadu Buhari to ensure air transport in Nigeria grows, unfortunately, the cost of aviation fuel has continued to rise unabated thereby creating huge pressure on the sustainability of operations and financial viability of the airlines. This is unsustainable and the airlines can no longer absorb the pressure.

“To this end, therefore, the Airline Operators of Nigeria (AON) hereby wishes to regrettably inform the general public that member airlines will discontinue operations nationwide with effect from Monday May 9, 2022 until further notice.

“AON uses this medium to humbly state that we regret any inconveniences this very difficult decision might cause and appeal to travelers to kindly reconsider their travel itinerary and make alternative arrangements.”

The aviation industry is not the only sector in Nigeria being affected by the rising oil prices. Earlier this week, telecom operators wrote a letter to the Nigerian Communication Commission, seeking approval to increase the cost of network services by 40 percent. The telcos citing the high cost of diesel, said they’re running on loss.The banking industry and manufacturers are not spared either. Both are lamenting as the cost of diesel, which powers their operation, has equally soared above N700.

The unaffordable cost of these needed petroleum products is attributed to lack of functioning refineries that would have minimized the costs as oil prices, spurred by Russia-Ukraine conflict, rise globally.

Nigeria is the ninth largest oil exporter in the world in terms of value, but has struggled over the years to refine its own products. This means, the African largest economy can only import refined products. The brute consequence of this predicament is now going beyond fuel subsidy, which is gulping over N7.5 trillion of Nigeria’s budget.

To curtail the deteriorating impact of non-functioning refineries, the Nigerian government is counting on Dangote Refinery, which is expected to start operation in July. But until then, many more industries will likely shut down.

Have you called your agent? People, camels are going to be the means of transportation as airline operators in Nigeria shut down due to aviation fuel: “The Airline operators in Nigeria have disclosed to the general public that they would shut down operations across the country on Monday, May 9, 2022 due to high cost of aviation fuel and other operational costs.”

“While aviation fuel worldwide is said to constitute about 40 per cent of an airline’s operating cost globally, the present hike has shot up Nigeria’s operating cost to about 95 per cent.

“In the face of this, airlines have engaged the Federal Government, the National Assembly, NNPC and Oil Marketers with the view to bringing the cost of JetA1 down, to no success.” he said.

The good news is that someone can go to court and get a court injunction to compel them to remain in operation without changing prices.Go ahead and save Nigeria via the court system.

But note this:  I have some agents in Sokoto who can supply you if you need help. From the main gate of Usman Danfodio University to the campus, you will see many camels; ask them and you will be lucky. If not, na trekking ohh because the airlines are joining university lecturers on that tradition: “special industrial action”!

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Comment 1: Hope the soon to be ready Dangote Refinery has provision for aviation fuel? It does feel like Nigeria’s survival is now hanging on one man’s shoulder, I hope the weight of the expectations won’t break him, because we need him more than he needs us.

Obviously we have been extremely irresponsible as a people, for long time anyway. Any price increase internationally hits Nigeria immediately, because we want to be the first people ever to build a nation via consume-as-you-earn model, we never had significant strategic reserves on anything, so it’s always a case of running around whenever there’s small perturbation anywhere. We are that unfortunate.

Part of our Excess Crude Account funds would have been used to purchase these items on reserve, whenever the price is cheaper. We are a subsidy country but when price of crude was selling below $50, we never had money to purchase tons of refined petrol and others and store them in our strategic reserves, to be released prudently in situations like this. We have never had great planners, just bunch of people who easily crack under intense pressure, you need to be tougher than your detractors, if you want to save a generation.

No need to blame anyone, we can start the heavy lifting now.

Comment 2: It’s a big problem because the aviation fuel, kerosine and diesel government have fully deregulated these products. Same government out of greediness license few of their greedy fellows to import same product.

Right thinking government would license who ever want to go into the business and that would have given the aviation industry access to source for fuel any where even importing by themselves.

Will Dangote refinery be able to certify the whole country energy needs? Even if it can, it would be on a long run when the refinery becomes stable not even in the next few years. This government derive joy in making life miserable for the citizens just to achieve it’s selfish aim.

On Plan To Shut Down Airline Operations In Nigeria Over Fuel Price Hike

The Airline operators in Nigeria have disclosed to the general public that they would shut down operations across the country on Monday, May 9, 2022 due to high cost of aviation fuel and other operational costs.

The information was conveyed in a letter addressed to the Minister of Aviation, Sadi Sirika, and the Nigerian Civil Aviation Authority (NCAA), on Friday, May 6, 2022 in Lagos.

The letter, which was duly signed by the President of the Nigeria’s Airline Operators Association, Serina Abdulmunaf, noted that overtime, price of aviation fuel – known as JetA1 – had risen from N190 per litre to N700 currently, and described the rise as ‘astronomical’.

“While aviation fuel worldwide is said to constitute about 40 per cent of an airline’s operating cost globally, the present hike has shot up Nigeria’s operating cost to about 95 per cent.

“In the face of this, airlines have engaged the Federal Government, the National Assembly, NNPC and Oil Marketers with the view to bringing the cost of JetA1 down, to no success.” he said.

The president of the Association went further to disclose that the situation had made the unit cost per seat for a one-hour flight in Nigeria to an average of N120,000.

Mr Abdulmunaf regretted that the cost of aviation fuel had continued to rise unabated, thereby creating huge pressure on the sustainability of operations and financial viability of the airlines.

Speaking further in the letter, he observed, “This situation is unsustainable and the airlines can no longer absorb the pressure.”

The president, however, appealed to travellers to kindly reconsider their travel itinerary and make alternative arrangements.

While expressing that the members appreciate the efforts of the current government to boost the growth of air transport in the country, but regretted the inconveniences the very difficult decision may cause their teeming customers.

The current situation, as mentioned above, has presently made air flight seem not unlike a means of transportation meant only for those in the highest class in Nigeria, which is highly regrettable and unacceptable.

The government, without equivocations, shouldn’t wait for such a pronouncement to emanate from the Airline operators before taking a drastic measure towards ending the uncalled hike of the price of JetA1 apparently occasioned by its scarcity across the country.

It’s really saddening to realize that the various levels of government in Nigeria invariably wait for workers to pronounce plan for strike, or worse still embark on it, before taking the required actions. This is currently witnessed in the education industry in the country. It is indeed condemnable.

The concerned authorities know exactly the needed approach to end the ongoing ugly experience in the Aviation industry, hence ought not to hesitate to do the needful.