News
Aviation fuel crisis: Operators fear industry collapse, job losses
As of Friday, reports indicated that Jet A1 fuel had risen from about N300 per litre in February to about N1,000 per litre, causing a significant increase in the cost of tickets.
Aviation Round Table, which is a body of professionals in the sector, said more airlines might be forced to halt operations, in addition to the two domestic airlines not in operation at the moment. Aero Contractors had on July 18 announced the suspension of its operations, citing the impact of the challenging operating environment on its daily operations, while the Nigerian Civil Aviation Authority on July 20 suspended the operations of Dana Air.
In an interview with one of our correspondents, a former Managing Director of the Nigerian Airspace Management Agency and Chief Executive Officer, TopBrass Aviation Company Limited, Capt. Roland Iyayi, said government must work towards reviving the refineries for the local production of JetA1. He added that government should consider supporting airlines in aviation fuel pricing in the short term.
He pointed out that many people were no longer travelling by air due to the hike in the price of tickets. This, he said, posed great danger to the survival of airlines and the aviation industry.
Iyayi added, “The key to the success of any airline is affordability. If fares are unaffordable, what you will end up having will be empty flights. Now, when you have empty flights, it will become a double whammy. At this point, how do you manage the sustainability of the airline?
“So, ultimately what we will have will be more airline failures. And if more airlines fail, it means that capacity will reduce and when this happens you will get very high fares. That is essentially what we are looking at now and it is a very precarious situation for the industry.
“This means there is imminent danger in the entire industry and it is bound to spiral out of control if something is not done urgently. So if the government considers aviation as a critical asset, I would expect it to intervene in JetA1 pricing.”
Also, the Assistant General Secretary of the Aviation Round Table, Mr Olumide Ohunayo, noted that the sector had been severely hit by the fuel crisis due to its dependence on importation and the high foreign exchange rate.
In an interview on Sunday, he added, “The Russia-Ukraine war has increased the average cost of fuel and all forms of gas productions, and this is exacerbated for Nigeria because of the weakening naira to the dollar. That has increased the pain on the airline and even the supplier. What we have is that one airline is grounded voluntarily and the other involuntarily.
“If things do not return to normal, other airlines may also be grounded. That is where we are going. It is funny that the government is telling us now, through the senate committee, that some of the aviation fuel is being exported to neighbouring countries and sold there.
“Though it is deregulated and the government does not subsidise it, why would they not be able to monitor the distribution that they have to move to neighbouring countries? Something is wrong. We need to tighten control on it.”
He urged the government to look at the port charges and taxes on aviation fuel and see if it could be suspended temporarily, pending when the price returns to normalcy. He added that it was risky to continue waiting for Dangote Refinery to start operations, noting that there must be a way to address the problem without delay.”
Ticket hits N150,000
Meanwhile, the cost of an economic ticket for an hour flight on domestic routes has increased by about 400 per cent in less than five months. It rose from about N30,000 in February 2022 to about N150,000 as of Saturday. This has been tied to the high cost of aviation fuel.
Although the latest cost varied among various airlines, findings showed that the few surviving domestic carriers had raised the price of air tickets to match the rise in the cost of aviation fuel.
As of 9am on Saturday, it was observed that the airfare for 12.45pm flight to Lagos from Abuja on Nigeria’s largest commercial airline, Air Peace, was put at N150,000, while that of 5.35pm went for N100,000.
For MaxAir, the 7.20am Sunday flight ticket from Kano to Lagos went for N130,000, while Lagos bound flight tickets from Abuja on Saturday were sold at N90,000.
The rates, however, differed on some other routes, as Ibom Air’s 6pm flight ticket on Saturday from Abuja to Uyo, for instance, went for N86,000.
Airline operators justified the jump in airfares, attributing it to the hike in aviation fuel, which accounted for about 60 per cent of the cost of operations of an aircraft.
This, according to them, had also caused lamentations among air travellers and led to a drop in the passenger volume lately, as they expressed fears of more airlines’ failures and a possible collapse of the industry if nothing was done urgently to salvage the situation.
Iyayi analysed how a commercial aircraft consumes fuel and what operators spend on fueling their airplanes for an hour flight.
He told one of our correspondents that most carriers in Nigeria were currently struggling to survive.
He said, “It is possible for aviation fuel to cause a jump in the cost of air tickets and the reason is very simple. Fuel as a component of operation is about 40 to 60 per cent of the cost of operating an aircraft. So when you take a flight that will last an hour, for instance, a Boeing 737, the fuel it burns is about 2.5 tonnes an hour.
“If you translate that into litres, you’re talking of 104,000 litres. At the current rate of fuel being N1,000/litre, what that essentially means is that an airline must sell tickets to cover the cost of fuel, which will be approximately N4.5m for that particular flight.
“So at N4.5m, if you are selling at N100,000 you will need to sell 45 seats to even cover that cost alone. That is not talking about the maintenance reserves, crew cost, insurance and all other factors that you need to consider for your cost of operations to be covered. Therefore, if you look at it from the perspective of just fuel, what you have are airlines struggling to even cover their cost. There is no margin left.”
He said if the charges to be paid to the various agencies and regulators were added, the fate of the airlines could best be imagined.
He added, “You need to also know that five per cent of whatever revenue they make goes to the NCAA. Essentially, we are saying that even before an airline starts operations, it is already struggling. Hence, airlines cannot continue to sustain losses for all the other agencies and service providers to thrive in the industry. This has been the situation in the last decades.
“The truth is that airlines are operating in the most difficult and hostile environment in the Nigerian landscape.”
OSOGBO — The All Progressives Congress (APC) has rejected the outcome of the August 15, 2026, Osun State governorship election as declared by the Independent National Electoral Commission (INEC), insisting that it is not convinced that Governor Ademola Adeleke secured the highest number of valid votes.
INEC on Sunday declared Adeleke the winner after the Returning Officer, Prof. Joshua Olalekan Ogunwale, announced the final results at the commission’s headquarters in Osogbo.
Adeleke, who contested on the platform of the Accord Party, polled 511,067 votes to defeat the APC candidate, Asiwaju Bola Oyebamiji, who scored 444,815 votes. The African Democratic Congress (ADC) candidate, Dr Najeem Salaam, came third with 17,180 votes.
However, the APC said it would not accept the declaration without conducting a comprehensive review of the electoral process.
Speaking on Arise TV’s Prime Time programme on Monday, the Director-General of the APC campaign for the Osun governorship election, Hon. Oluwole Oke, said the party had commenced an audit of the results and electoral materials from the poll.
Oke said the party had directed its agents across the state to submit relevant result sheets for scrutiny as it investigates alleged infractions.
“We need to do the needful which is to evaluate the process, review the process and then form an opinion. We’ve embarked on an audit process; we’ve asked all our party agents to submit copies of Form EC8A, B, C to our secretariat for review. We need to inspect all the materials because we do not agree with the declaration of INEC, and that’s our position for now,” he said.
The APC campaign chief also dismissed suggestions that the party was under pressure to immediately accept the outcome following President Bola Ahmed Tinubu’s congratulatory message to Adeleke.
Tinubu had congratulated Adeleke after the declaration, describing the outcome as a reflection of the will of the people.
Reacting to the President’s position, Oke said Tinubu spoke in his capacity as President and a democrat following INEC’s declaration.
“Mr. President spoke as the Father of the nation and a democrat following the declaration by INEC,” he said.
Oke, however, maintained that the APC would rely on its own assessment of the election after completing its review.
“We’re on ground and politics is local and, like I’ve told you, what we’re doing is to conduct a thorough review of the entire process and form an opinion,” he said.
He added that the party would not be rushed into congratulating Adeleke, insisting that its preliminary position was that the governor did not secure the highest number of valid votes.
“We won’t be under any subtle pressure to easily reach out to congratulate Senator Ademola Adeleke because we believe he didn’t score the highest valid votes,” Oke said.
The APC is expected to determine its next course of action after completing its audit and reviewing the electoral materials and results submitted by its agents.
ABAKALIKI — The 2027 governorship race in Ebonyi State is gathering momentum, with the Peoples Democratic Party (PDP) candidate, Chief Ifeanyi Odii, unveiling a package of reforms aimed at improving the welfare of workers, teachers and retirees.
Odii made the commitments during a meeting with representatives of Ebonyi civil servants and members of the Nigeria Union of Teachers (NUT) at his Lagos residence, where he outlined his plans for a comprehensive reform of the state’s public service.
A major component of his agenda is a workers’ housing scheme designed to provide 1,000 housing units within his first year in office and up to 5,000 units over four years if elected governor.
Odii said the housing programme would be structured to minimise dependence on direct government funding, with workers’ contributions and existing pension assets forming part of the financing framework.
He said the initiative would address the housing difficulties faced by workers and retirees, particularly retirees who often struggle to sustain rented accommodation after leaving government service.
The PDP candidate also proposed a paperless digital loan platform that would allow workers to access loans against their contributory pension savings without the bureaucratic delays associated with the existing system.
On retirement benefits, Odii pledged that workers would have access to their entitlements immediately upon retirement, arguing that retirees should not endure prolonged delays in receiving benefits accrued during their years of service.
He further promised to reform the promotion process through computer-based promotion examinations capable of producing results instantly.
According to him, the digital system would reduce delays, curb opportunities for manipulation and promote greater transparency and fairness in the career progression of civil servants.
Odii said the proposed reforms were aimed at creating a public service where workers would have improved access to housing, credit facilities and timely retirement benefits, while ensuring a more transparent promotion system.
He presented the proposals as part of his broader agenda to improve workers’ welfare and reposition the Ebonyi State civil service for greater efficiency if elected governor in 2027.
The MainPower Electricity Distribution Limited (MEDL) has confirmed the death of one of its operations staff in an electrical accident.
The Head of Communications, MEDL, Mr Emeka Ezeh, who confirmed the incident in Enugu on Monday, said that the incident occured on Aug. 13 at Eke in Udi Local Government Area of Enugu State.
Ezeh said that the incident, which occurred at about 1p.m., involved Mr. Samson Okechi, the Team Lead, Abor, attached to the company’s 9th Mile District.
He said, “Okechi was carrying out maintenance work on a 50kVA/11kV pole-mounted distribution substation at Eke when he sustained an electric shock.
“Okechi was immediately evacuated to Our Saviour Hospital, Ngwo, for medical attention but was pronounced dead by the doctor on duty. His remains were subsequently deposited at a mortuary.”
He said that the incident was formally reported at the Ngwo Police Station for documentation and other necessary statutory actions.
Ezeh also debunked claims circulating on some social media platforms that Okechi was murdered or that the incident was the result of sabotage.
“I wonder why some people take pleasure in conjuring unfounded narratives and circulating them, thereby creating unnecessary tension and bad blood. This is so unfair,” he said.
He urged members of the public to disregard the claims, describing them as baseless.
According to him, Okechi had requested a Station Guarantee (SG) for the Okwe 11kV Feeder, which was granted at about 11:06 a.m. at the 9th Mile Injection Substation. The feeder was subsequently opened and tagged.
“This is a very unfortunate development and a big shock to all of us, his colleagues. Our hearts go out to his immediate family as they grieve,” Ezeh said.
The MEDL spokesman disclosed that MainPower management had commenced a comprehensive investigation to establish the immediate, underlying and root causes of the accident.
He said, “We are committed to ensuring that the investigation is thorough and evidence-based.
“The findings will be used to identify any gaps, determine appropriate corrective measures, and strengthen safety procedures and operational controls where necessary.”
Ezeh MEDL assured its customers and stakeholders that safety remained a paramount priority in its operations, adding that appropriate measures would be taken based on the outcome of the investigation.
Idiaye, a third-term lawmaker, takes over from Blessing Agbebaku, who resigned as Speaker on Monday amid moves by lawmakers to impeach him.
The emergence of Idiaye was said to have been influenced by the gentleman’s zoning arrangement in the Assembly, which provides that when the governor is from the Edo Central Senatorial District, the Speaker should come from Edo North.
Idiaye, being the oldest member from the Edo North Senatorial District, was subsequently elected Speaker.
Without the zoning arrangement, the Deputy Speaker would have automatically succeeded Agbebaku, according to the new Speaker.
Members of the Assembly were at the Government House to inform Governor Monday Okpebholo of the change in leadership.
Agbebaku was said to have resigned early on Monday following alleged moves by lawmakers to impeach him.
Reports gathered that 17 of the 24 lawmakers had signed a notice of impeachment on Sunday night, a development that may have prompted his resignation.
Agbebaku’s resignation was confirmed by Ebojele, who said details of the development would be made public later.
She said, “I can confirm the Speaker’s resignation but details will be made public later.”
The Speaker of the Edo State House of Assembly, Blessing Agbebaku, has resigned from his position.
Agbebaku stepped down on Monday amid moves by some lawmakers to impeach him.
His resignation was confirmed on Facebook by his media aide, Ivy Adodo-Ebojele, who said further details on the circumstances surrounding his exit would be made public later.
“EDO ASSEMBLY SPEAKER RT HON CHIEF BLESSING AGBEBAKU RESIGNS,” she wrote.
The development has thrown the Edo State House of Assembly into a fresh leadership crisis, with lawmakers expected to determine a new Speaker.
Details shortly…
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