Moreover, 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.
Jet fuel haulage using BRV is not optimal, the Mosimi pipeline should be refurbished or a new one constructed for facilitating the direct supply of jet fuel from the 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 facility in Nigeria. The approval of the C-check maintenance of Boeing classics by the Nigerian Civil Aviation Authority 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.
Multi-element key performance indicators need to be developed to track and measure the Nigerian airport and aviation fuel sector performance using key industry parameters. Mandatorily all into-plane companies must subscribe to the Aircraft Refuelling Indemnity (Tarbox) Agreements with insurers for managing aircraft refuelling liability risks.
As air transportation is critical to businesses and other economic activities in Nigeria. It is a source of revenue for the country, generating earnings from both passengers and cargo movements. It also creates various related servicing companies and thousands of jobs for the citizenry. Jet fuel unavailability, inadequate supply, and price volatility are significant sources of disruption to flight schedules and steady airline income.
Hence, the government must deploy adequate interventions and policies to arrest the negative trend and create stability in the aviation sector. This will guarantee profitability, motivate private-sector investment, and eliminate the sufferings passengers endure yearly due to flight delays, rescheduling and cancellations induced by the high cost and scarcity of jet fuel.