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Nigeria: ‘No fuel, no flight’ as airline operators threaten strike from Monday

Published

3 years ago

May 6, 2022

Following the continued increase in price and availability of aviation fuel in Nigeria, major Airline operators have once again threatened to shut down operations from Monday, 9 May 2022.

The Airlines, which include Air Peace, Ibom Air, Max Air, Arik Air, United Nigeria Airlines Aero Contractors, Azman Air, Overland Airways, and Dana Air are embarking on an indefinite strike from next week.

The effect of recent fuel scarcity in Nigeria hit harder on citizens of the West African country. Recall that airline operators at some point in February warned that they had just three more days to fly due to the high cost of aviation fuel.

The strike announcement was made in a statement by the Airline Operators of Nigeria (AON) via a statement issued on Friday which was signed by the President of AON, Abdulmunaf Yunusa.

According to the statement, airline operators claimed to have been running a subsidized system which is not favourable for business.

“It is with a great sense of responsibility and patriotism that the Airline Operators of Nigeria (AON) have carried on deploying and subsidising their services to our highly esteemed Nigerian flying public in the last four months despite the astronomical hike in the price of JetA1 and other operating costs.

“Overtime, aviation fuel price (JetA1) has risen from N190 per litre to N700 currently. In the face of this, airlines have engaged the Federal Government, the National Assembly, NNPC and oil marketers with the view to bringing the cost of JetA1 down which has currently made the unit cost per seat for a one hour flight in Nigeria today to an average of N120,000. The latter cannot be fully passed to passengers who are already experiencing a lot of difficulties.

“To this end therefore, the AON wishes to regrettably inform the general public that member airlines will discontinue operations nationwide with effect from Monday May 9, 2022 until further notice. The statement concludes.

Although Nigeria is one of the largest oil producers in the world, it does not refine its crude locally. Thus, the ongoing war between Russia and Ukraine has affected the availability of refined crude for oil demand in the country. In the last two months, there has been scarcity and a hike in the price of other crude products like diesel, and petrol in Nigeria.

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Moroccan annual inflation rises to 0.8% in November

Published

5 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

6 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”