In a setback for Nigeria’s aviation sector, a dysfunctional pipeline meant to supply aviation fuel to Lagos’ local airport has remained unrepaired for 32 years, despite expectations that Dangote Petroleum Refinery’s operations would significantly reduce fuel prices. BusinessDay’s investigation sheds light on the longstanding challenge, highlighting its impact on airline operations and passenger fares.
The pipeline’s continued dysfunctionality poses a significant obstacle to fuel supply, escalating costs for airlines and contributing to fare increases for passengers. John Ojikutu, CEO of Centurion Aviation Security and Safety Consult, lamented the neglect of repair efforts since 1992, underscoring missed opportunities to address the issue despite long-standing recommendations.
BusinessDay’s inquiries reveal the financial strain on airlines due to exorbitant fuel transportation costs and demurrage charges. With aviation fuel expenses comprising approximately 45% of operating costs, airlines face mounting financial pressures, affecting competitiveness and consumer affordability.
The surge in fuel prices, which have risen steadily in recent months, has translated into substantial fare hikes for passengers traveling across the country. As a result, the industry grapples with the challenge of maintaining competitiveness while meeting consumer demand.
Despite previous discussions with the Federal Airports Authority of Nigeria (FAAN) to address the pipeline issue, no concrete solutions have emerged. Olumide Ohunayo, industry analyst and Director of Research at Zenith Travels, advocates for diversifying fuel supply sources, emphasizing the need to support modular refineries as a viable alternative.
While stakeholders await FAAN’s response to inquiries regarding the pipeline’s status, the aviation industry continues to confront the enduring challenges posed by fuel supply constraints. As efforts persist to find sustainable solutions, the imperative remains to enhance operational efficiency and alleviate cost burdens for airlines and passengers alike.
