No immediate solutions to the crisis in the aeronautical industry – Sirika
Nigeria's Minister of Aviation, Hadi Sirika, has said there are no immediate solutions to the continuing crises plaguing the country's aviation sector.
The Minister revealed this during an emergency meeting with the Air Operators Association of Nigeria (AON) in Abuja on Tuesday.
He said the variables impacting crises in the aviation sector are beyond the industry's control.
"There is no immediate solution," Sirika said.
Over the past few months, domestic airlines have lamented the sudden surge in aviation fuel, threatening to halt operations.
BackgroundAirlines had earlier raised the base fare of their flight to N50,000+ since February, with many Nigerians criticizing the move.
However, the continued shortage of aviation fuel and foreign currency has forced some airlines to cease operations.
Mr. Sirika said on Tuesday that there was no short-term solution due to the challenges, adding that what is plaguing the industry is a global problem.
“The energy crisis is real and global. Today, there are aviation fuel problems all over the world. From America to New Zealand. It is aggravating in Nigeria because we we are not producing the product,” the minister said.
He also explained that the situation was further aggravated by the continued scarcity of currencies, as the source of income from forex had diminished.
He reiterated that the Nigerian government had in the past provided 10,000 metric tons of aviation fuel for airlines and that the government was ready to do more.
"As we speak, the government is finding a permanent solution to this problem," he said.
According to the Minister, some of the solutions being considered include "importing the product at an appropriate price, accelerating the renovation of our refineries and also waiting for the commissioning of the Dangote refinery to stimulate the 'supply of the product'.
"But it won't be soon," he added.
"So when you ask how soon, I wouldn't know when Dangote will come on stream, I wouldn't know when the refineries will be full. I wouldn't know when the imports will become sufficient. But the government is working so that all of this to happen,” he said.
Mr. Sirika said he will meet with relevant stakeholders including the Central Bank of Nigeria to see how airlines can access dollars at the official market rate rather than the black market rate.
Stakeholder involvementIn his address, AON Chairman Abdulmunaf Sarina said that the aviation fuel crisis started from 180 Naira per liter and now it is fixed at 1000 Naira per litre.< /p>
He said the forex crisis is also a huge burden on the industry.
“The rate at which the dollar is currently climbing is very alarming. Every day a difference between 10 and 15 naira is added in the parallel market. Last Monday it was N610 but today it is N670 for a dollar,” he said.
He urged the minister to intervene.
Similarly, Allen Oyeama, vice president of AON, said airline operators are happy with the government's response so far.
“We, the airline operators, are happy with the approach the government is proposing. Another 000 have arrived. We are about to start accessing it. We are happy with the long-term approach,” he said.
"It's not easy to give a timeline to issues like this because the challenge is global. Even US airlines are also at risk. It's not just Nigeria. That's why we eat the government. But we are satisfied so far."
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Nigeria's Minister of Aviation, Hadi Sirika, has said there are no immediate solutions to the continuing crises plaguing the country's aviation sector.
The Minister revealed this during an emergency meeting with the Air Operators Association of Nigeria (AON) in Abuja on Tuesday.
He said the variables impacting crises in the aviation sector are beyond the industry's control.
"There is no immediate solution," Sirika said.
Over the past few months, domestic airlines have lamented the sudden surge in aviation fuel, threatening to halt operations.
BackgroundAirlines had earlier raised the base fare of their flight to N50,000+ since February, with many Nigerians criticizing the move.
However, the continued shortage of aviation fuel and foreign currency has forced some airlines to cease operations.
Mr. Sirika said on Tuesday that there was no short-term solution due to the challenges, adding that what is plaguing the industry is a global problem.
“The energy crisis is real and global. Today, there are aviation fuel problems all over the world. From America to New Zealand. It is aggravating in Nigeria because we we are not producing the product,” the minister said.
He also explained that the situation was further aggravated by the continued scarcity of currencies, as the source of income from forex had diminished.
He reiterated that the Nigerian government had in the past provided 10,000 metric tons of aviation fuel for airlines and that the government was ready to do more.
"As we speak, the government is finding a permanent solution to this problem," he said.
According to the Minister, some of the solutions being considered include "importing the product at an appropriate price, accelerating the renovation of our refineries and also waiting for the commissioning of the Dangote refinery to stimulate the 'supply of the product'.
"But it won't be soon," he added.
"So when you ask how soon, I wouldn't know when Dangote will come on stream, I wouldn't know when the refineries will be full. I wouldn't know when the imports will become sufficient. But the government is working so that all of this to happen,” he said.
Mr. Sirika said he will meet with relevant stakeholders including the Central Bank of Nigeria to see how airlines can access dollars at the official market rate rather than the black market rate.
Stakeholder involvementIn his address, AON Chairman Abdulmunaf Sarina said that the aviation fuel crisis started from 180 Naira per liter and now it is fixed at 1000 Naira per litre.< /p>
He said the forex crisis is also a huge burden on the industry.
“The rate at which the dollar is currently climbing is very alarming. Every day a difference between 10 and 15 naira is added in the parallel market. Last Monday it was N610 but today it is N670 for a dollar,” he said.
He urged the minister to intervene.
Similarly, Allen Oyeama, vice president of AON, said airline operators are happy with the government's response so far.
“We, the airline operators, are happy with the approach the government is proposing. Another 000 have arrived. We are about to start accessing it. We are happy with the long-term approach,” he said.
"It's not easy to give a timeline to issues like this because the challenge is global. Even US airlines are also at risk. It's not just Nigeria. That's why we eat the government. But we are satisfied so far."
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