The President of the Aircraft Owners and Pilots Association in Nigeria, Dr. Alex Nwuba, has stated that the country's aviation industry is facing a severe cost crisis driven primarily by global jet fuel price increases, rather than a supply shortage. In an interview on ARISE NEWS, Nwuba explained that despite Nigeria's sufficient jet fuel reserves, estimated at 74 days by the Nigerian Petroleum Regulatory Commission, the main challenge remains the volatility in fuel prices due to international market dynamics and currency fluctuations.
He detailed that the soaring fuel prices have caused airline operational costs to triple, with jet fuel now accounting for about 40 percent of expenses. Unfortunately, airlines are unable to transfer these costs to passengers because of limited capacity in the market, exacerbating financial strain. Nwuba emphasized that safety standards are non-negotiable, and airlines would prefer to reduce capacity or temporarily shut down rather than compromise safety.
Policy Recommendations and Structural Reforms
Nwuba suggested that government intervention could help alleviate some pressure by removing certain taxes and logistics costs and establishing transparent subsidy frameworks, mimicking successful models in countries like India. He noted that Nigeria's sector also requires broader structural reforms, including tax reforms and improved stakeholder consultations, to foster sustainable recovery.
Concluding, Nwuba underscored that solving Nigeria’s aviation crisis necessitates addressing underlying regulatory and fiscal distortions, rather than relying solely on short-term measures. Only through comprehensive action can the industry overcome these persistent challenges and ensure safety and affordability for travelers.
