As the energy crisis in Africa’s most populous nation, Nigeria persist, Foreign airlines flying into the country have resulted to refueling abroad to avoid scarce and increasingly jet fuel as the oil producer battles a hard currency shortage.
The current foreign currency shortage has resulted in a high increase in aviation fuel making some local airlines to suspend operations.
This is the second blow for airlines operating in Africa’s biggest economy, as the Country’s Central bank had earlier made it almost impossible to repatriate profits from ticket sales while trying to prevent a currency collapse.
The crash in the country’s currency, naira since devaluation in June has led some companies such as Total, Sahara and ConocoPhillips who market jet fuel locally to double their price.
Some marketers complained saying “even at a higher price, lack of dollars has made fuel scarce”.
SIGNAL (@thesignalng) September 13, 2016
The central bank had hoped floating the naira would attract dollar inflows, but the naira sunk by 50 percent, forcing oil firms to charge airlines, stuck with piles of naira, in dollars for jet fuel.
Industry sources say Airlines met with transport ministry officials last week in the capital, Abuja to press for fuel at lower prices.
Nigeria is one of the most profitable markets for foreign airlines and landing planes manufacturers in the world.