Aircraft in Nigeria runs on civil grade Aviation Turbine Kerosene (ATK), particularly jet A-1 fuel. Jet fuel is a middle distillate, and it belongs to the kerosene family. The three refineries in Nigeria currently do not produce jet fuel, and as such national jet fuel consumption is sourced via importation from foreign refineries.
The scarcity of fuel in Nigeria negatively impacts sustainable economic development due to its crippling effect on energy-dependent productive activities in the country. Jet fuel scarcity and consequential flight disruptions and cancellations are sometimes a yearly occurrence in Nigeria. These issues are usually due to importation challenges, licensing difficulties, and foreign exchange scarcity.
Adequate fuel supply and availability are vital for economic sustainability. Aviation fuel accounts for more than 30% of an airline’s operating expenditure. Jet fuel price is one of the factors that determine airfare and airlines’ profitability. The aviation sector is plagued with jet fuel scarcity and this result in flight delays, rescheduling, and cancellations. Jet fuel scarcity and the escalating cost are products of multifaceted factors that are related to finance, logistics, management, and policy.
The industry should encourage local production of jet fuel by issuing refinery operating licences to ready investors. Such an operating licence should be condition-based and activation-time bound to prevent the issue of people collecting permits without implementation. The already existing three refineries in the country should undergo capacity upgrade maintenance, and jet fuel should be included in the output product mix to complement importation. The Mosimi pipeline should be refurbished or a new one constructed for facilitating the direct supply of jet fuel from the Intermediate Shore Depots (ISD) to the airport. This will eliminate the Apapa traffic, ensure fast delivery of jet fuel and reduce transportation costs. Rail tankers can be considered as an alternative.
Also, the high cost of aircraft maintenance abroad can be avoided by setting up a Maintenance, Repair and Overhaul (MRO) facility in Nigeria. The approval of the C-check maintenance of Boeing classics by the Nigerian Civil Aviation Authority (NCAA) is a welcome development. Jet fuel price volatility can be managed by airlines through jet fuel hedging to limit their exposure to rising jet fuel prices in the future.
Source: thenationonlineng.net