Home » Headline » Nigeria loses N110billion to Ghana, Benin on Aviation Fuel
Nigeria loses N110billion to Ghana, Benin on Aviation Fuel

Nigeria loses N110billion to Ghana, Benin on Aviation Fuel

An Aviation industry player and expert, Mr. Betiku Olasimbo has revealed that Nigeria is losing a whopping N110billion to neighbouring Ghana and Benin over the scarcity of Aviation fuel known as Jet A1.

Mr Olasimbo, who is the General Manager/ COO of CITA Group stated that except fuel marketers improve on their aviation fuel supply chain, the aviation industry would continue to fail to meet up with over one billion litres of Jet A1 needed for the sector annually. At N220 per litre cost, 500 million litres demand could not be met last year.

The remaining 500 million litres are sourced by airlines in the neighbouring countries annually occasioned by scarcity and high cost of the commodity in Nigeria. Aside that, the International Civil Aviation Organisation (ICAO), the global aviation regulatory body, has also projected that Nigeria will need two billion litres of jet A1 annually by 2030, occasioned by rise in travelling public.

Mr. Betiku Olasimbo, made the disclosure during the launch of CITA/PUMA partnership. The partnership would see CITA expand its operations and services in the whole of Africa and to bridge the gap in supply chain.

Olasimbo said: “By 2017, we were just able to lift 50 per cent of the one billion litre-capacity. Most airlines tank up in Lome, Accra, and yet, Lagos is second largest airport in Africa which is supposed to present itself as a very strong hub both for passenger traffic and also for cargo.

Most of the big players in cargo are coming to Lagos, but after they discharge their cargoes, they move to Ghana to tank their fuel.” Meanwhile, there are indications that aviation fuel could rise by between 10 and 20 per cent in the country because of the rise in price of crude oil.

A managing director of one of the domestic airlines, who spoke to New Telegraph on condition of anonymity, said presently, Jet A1 cost between N207 and N220 in Lagos, depending on the marketer.The airline chief further disclosed that the price might be up to an alltime high of between N250 and N270 per litre.

Aviation fuel costs more in Nigeria and other oil producing countries than their counterparts that do not produce oil. Ghana used to have the highest aviation fuel in Africa until the government cut the cost by 20 per cent two years ago. For instance, in Nigeria, despite the stability in the lifting of aviation fuel across the country and the deregulation of the commodity, JET A1 has hit an all-time high of N220 per litre. The skyrocketing price of JET A1 in Nigeria has added more to the pains of airlines, which use 30 per cent of their revenues for fuelling aircraft.

Leave a Reply

Your email address will not be published.

%d bloggers like this: