LEGIT NG
Airline operators in Nigeria have indicated that they may be forced to adjust their fares upwards as the cost of aviation fuel surges above N1,300 per litre.
Obiora Okonkwo, the spokesman for local airlines, disclosed this recently and called for immediate government intervention to prevent the collapse of the aviation sector in Nigeria.
Forex problems and aviation fuel prices affecting operations
The airlines said that foreign exchange volatility and the surging price of aviation fuel, currently selling at N1,300 per litre, had disrupted the operational planning and stability of the sector.
The move follows the unification of the different segments of the forex markets, causing the naira to fall sharply in the official and parallel markets.
The naira depreciated to over N1,500 per dollar in the black market and N1,474 in the official market recently.
Nigeria has struggled with prolonged dollar scarcity due to reduced oil production, which earns the country over 90% in foreign exchange.
The development has made it challenging for local airlines to raise enough Forex to run checks and maintain their fleets overseas.
The airline spokesman, Okonkwo, explained that the unforeseen rise in aviation fuel prices from N700 per litre and the rise in FX rates to N1,400 per dollar resulted in significant losses for local carriers.
