Stakeholders in the aviation industry, Thursday, warned that the aviation fuel market in Nigeria risks being monopolised as marketers are reluctant to import aviation fuel, otherwise known as Jet A1.
The experts also expressed dismay over the abandonment of the 98 kilometres pipeline at the Murtala Muhammed Airport in Lagos, saying restoring the facility would reduce traffic congestion by keeping many Jet AI trucks off Lagos roads and reduce costs.
They spoke at the Gateway Colloquium organised by CITA, in partnership with the League of Airports and Aviation Correspondence, LAAC, themed: ‘Aviation Fuel Business: The Scenario and the Metaphor,’ held in Lagos.
Speaking at the event, former Managing Director of the Federal Airports Authority of Nigeria, FAAN, Dr Richard Aisuebeogun, called for strong regulatory oversight to prevent monopolistic practices and ensure fair competition in the industry.
Aisuebeogun said: “At present, many of the marketers you see, and many of them are here with us, are reluctant to import jet fuel due to uncertainty. The unfortunate thing is that if we allow this to continue, there is a risk that a single dominant supplier will emerge. And if that happens, it will potentially lead to price manipulation and market inefficiencies.”
He, however, noted that with the commissioning of new refineries and the rehabilitation of existing ones, there would be a shift for Nigeria.
He said: “Amidst these challenges, new safe harbors are emerging. The commissioning of new refineries and the rehabilitation of existing ones mark a pivotal shift for Nigeria, Domestic refining will reduce import dependence, stabilise local supply, and enhance quality control. This aligns perfectly with our national energy strategy, reinforcing fuel security while positioning Nigeria as a regional aviation hub.”
Also speaking, the Group Managing Director of CITA Energies, Mr Thomas Ogungbangbe, said restoring the 98-kilometre pipeline, which has been non-functional for over three decades, would ease fuel supply to airlines.
Ogungbangbe said: “Having these pipelines will save Nigeria millions of dollars. The responsible agencies should work together to look at the possibilities of restoring the abandoned pipeline. Most of the vessels that carry these products from Nigeria, go to other countries like Togo to do their repairs because we do not have the facilities. We need to secure things like these that will bring opportunities to Nigeria.”
Meanwhile, Managing Director of Ndano Energy, Mr Chris Ndulue, also said: “Having these pipelines installed gives Nigeria a lot of opportunities that save us million of dollars on a monthly basis. The Atlas Cove Jet A1 pipeline had not been working, which I think with inter-governmental or inter-ministerial cooperation they can look at the possibility of restoring it.” (Vanguard)
By Dickson Omobola