Nigerian Airlines Struggle to Face Soaring Fuel Prices

TEMPO.CO, Jakarta – Plans of a number of airlines from Nigeria who want to temporarily stop domestic flights as a result of rising fuel prices, have not been carried out. The Nigerian Airline Association on Sunday, May 8, 2022, said the cancellation of the plan was carried out before it took effect.

Aviation operators in Nigeria are currently under pressure from the Nigerian Government, consumer protection agencies and consumers themselves. They asked that the plan to shut down domestic flights be put aside since it was announced on Friday, May 6, 2022.

Airlines in Nigeria have complained about having to pay upfront for fuel for planes at 700 naira (Rp 24,500) per liter. That price, more than doubled this year.

The increase in the price of airplane fuel in Nigeria is the impact of Russia’s invasion of Ukraine. Currently, the operations of airlines in Nigeria are up nearly 95 percent.

The lack of an American dollar in Nigeria and the weakening of the naira have exacerbated the woes in the sector. Domestically, airlines in Nigeria have had to deal with double-digit inflation, slowing economic growth and high unemployment and insecurity.

The Nigerian Ministry of Aviation on Sunday morning, May 8, 2022, explained that a number of local airlines in Nigeria are facing the dynamics of the world oil market which is less favorable for them. However, they are still making some efforts to find long-term solutions to the problems of fuel availability and affordability.

Earlier in 2016, fuel shortages and high debt had caused a number of airlines in Nigeria to temporarily suspend domestic flights indefinitely. The decision was taken despite the Nigerian Government having intervened by providing financial assistance as a form of support in that sector.

Source: Reuters

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