Jet fuel: Shutdown looms as FG, marketers, airlines’ negotiation ends in deadlock

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Photo: AP

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By Nnasom David

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Strong indications emerged on Thursday that airline operators in Nigeria may increase airfares or suspend operations after 48 hours of negotiations with the Federal Government over the aviation fuel crisis ended without resolution.

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The development comes despite a 30 per cent debt discount approved by President Bola Tinubu for airline operators, aimed at easing the financial burden caused by a sharp spike in aviation fuel prices, which have risen by about 300 per cent.

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The waiver covers debts owed to key aviation agencies, including the Nigerian Civil Aviation Authority and the Nigerian Airspace Management Agency, among others. Minister of Aviation and Aerospace Development, Festus Keyamo, described the move as emergency relief rather than a subsidy, noting that it is intended to cushion the impact of rising operational costs.

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However, airline operators say the intervention may not be sufficient to prevent a looming crisis.

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They warned that fare increases may be inevitable as operators struggle to remain afloat.

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Speaking after a four-hour closed-door meeting in Abuja, Keyamo disclosed that stakeholders —including airline operators, oil marketers, regulators, and the aviation ministry — have agreed to establish technical “focal teams” to negotiate a sustainable pricing framework.

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“The focal teams will immediately engage to arrive at fair and reasonable pricing,” Keyamo said.

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He added that the public would be updated within 72 hours.

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He acknowledged that airlines are being pushed to the brink by soaring aviation fuel costs and other operational expenses.

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Also speaking, Vice President of the Airline Operators of Nigeria, Allen Onyema, warned that the situation is critical and could lead to a shutdown within days if urgent action is not taken.

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“No airline can continue under these conditions. The cost of fuel alone is overwhelming operations,” Onyema said.

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He noted that operators have stretched beyond sustainable limits.

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He, however, commended the Federal Government for its engagement but stressed that without further relief within the next seven days, airlines may be forced to halt operations.

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Meanwhile, Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Saidu Aliyu Mohammed, assured that efforts are underway to review pricing templates and ensure a balance between fuel supply and the survival of airline operators.

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Vanguard reports that the outcome of the next round of negotiations is expected to determine whether the sector can avert a shutdown or brace for higher ticket prices.

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