Stakeholders seek local refining of fuel, funding window

Players in the aviation industry have called on the Federal Government to prioritise the refining of Jet A1, also known as aviation fuel, to stem the rise of the price of the product.

The government was also asked to provide special funding to the aviation industry in order to address the issues of foreign exchange and other challenges facing organisations in the sector

Speaking yesterday at the opening of the 51st Annual General Meeting (AGM) and Conference organised by the Nigerian Air Traffic Controllers’ Association (NATCA) organised with the theme: ‘Energy Crisis and The Aviation Industry: A Quest for Sustainable Growth’ in Ibadan, the Oyo State capital, the Chairman of the occasion, Prof. Anthony Kila, lamented that the failure of the government to refine the Jet A1 product was affecting the economy.

Kila insisted that the industry should be seen as an essential infrastructure by the government, adding that aviation should not be treated as elitist.

He explained that apart from telecoms industry, aviation is the next to connect humans and cargo, maintaining that the government should not allow the energy crisis to stunt growth in the sector.

Kila said the more passengers patronise the sector, the more revenue for the players in the industry and the country.

He added: “We should create an aviation sector that is able to create movement for commerce. The issue of energy crisis should not be allowed in the industry. If we want to make aviation industry to be viable, we should look at commerce.

"The government can look at establishing a bank of aviation, which will attract other players into the sector, especially investors. Aviation leaders should come together and ensure aviation fuel is refined in the country.”

Kila also craved more recognition for ATCs, saying they play critical roles in ensuring safety on the ground and in the air.

Also, the immediate past Managing Director, Nigerian Airspace Management Agency (NAMA), Capt. Fola Akinkuotu, said inasmuch as aviation fuel is continued to be imported, its price and airfares would continue to skyrocket.

Akinkuotu lamented that barely three months ago, one-way ticket in the business class to Abuja from Lagos was N50, 000, but that the airfare had risen to N150,000.

Akinkuotu challenged airline operators to acquire modern equipment to address the challenge of ageing aircraft, hoping that the planned aircraft leasing company by the government would help to resolve the challenge.

He, however, said the adoption of modern technologies by government and other organisations in the world help to address some of the challenges bedeviling growth in the sector.

"There should be appropriate financial institution where the airlines can lend money at single digit interest rates to acquire modern aircraft.

"Also, we will continue to pay more for flights. Three months ago, a business class ticket Lagos-Abuja was just N50,000 and it rose to N75,000, but today, it is N150,000 for the same ticket. The government should address the challenges to save the sector.”

Earlier, Mr. Abayomi Agoro, the President of NATCA, regretted that energy crisis in Nigeria had got worse in recent months.

He explained that with the challenge of insecurity and bad roads, aviation industry needed effective and efficient handling by all.

Agoro further called for the confirmation of Mr. Matthew Pwajok, the Acting Managing Director, NAMA.