Nigeria becomes the first country to cancel a large part of its flights due to rising fuel prices: “it is unaffordable”

Nigeria has an area of almost 924,000 square kilometers —80% more than Spain— and there are approximately 840 kilometers between Lagos and Kano, two of its most important cities. Despite these dimensions and its dense population, in a matter of hours the country will see drastically reduced its flight schedule and the possibilities of moving around the country. It will do so indefinitely, until further notice. The reason: rising fuel prices.

The effect of the Ukraine warthe cost of Russian raw materials, the cut in the Chinese export quota and even the legacy of the pandemic have formed a “perfect storm” that has skyrocketed the cost of fuel used by aircraft, which under normal conditions supposed a major load in airline finance.

The data is eloquent and draws a delirious escalation. As detailed The vanguardIn 2021, each liter of Jet A-1 type turbine fuel cost €0.43 in Nigeria. At the beginning of the year the price had already doubled to 0.82 and in April, with Russian troops advancing through Ukraine, the price exceeded 1.6 euros. The escalation has been so pronounced that the airlines themselves have concluded that it often doesn’t pay them to get their planes out of hangars.

When it’s not worth taking off

After several months “subsidizing” operations and bearing the effect of rising costs, the association representing Nigerian companies sent this week a letter to the government in which they inform him that continuing to operate internal flights is totally unfeasible for them. “The situation is unacceptable,” he stresses. Abdulmunaf Yunusapresident of the association and owner of Azman Airwho emphasizes that the sector “has been enduring as much as possible without practically raising prices.”

The measure will go into effect tomorrow and will make Nigeria a the first country in the world who is forced to partially cancel their flights due to the escalation of fuels. The decision will focus on “operations at the national level”, keeping aside, at least for now, international routes; but it will probably affect the country both economically and socially. With road routes marked out by armed groups, many Nigerians choose to take planes to move from one point to another in their sprawling nation, the most populous in Africa.

On average, Nigerian airlines fly around 1,600 flights a week, the vast majority, 95%, of a national character. Nor is it easy to specify how long the restriction will last or what will be the solution that will allow it to be reversed. In March the corporation Nigerian National Petroleum agreed license companies of the sector to import fuel, a maneuver that sought to cut costs but has not prevented weeks later from opting for suspension.

“While aviation fuel is said to make up about 40% of an airline’s operating cost globally, the current increase has skyrocketed it in Nigeria about 95%”, emphasizes Abudulmunaf. From the sector, in fact, the message is stressed that most companies are already operating at a loss and a sustained increase in rates would seriously jeopardize their future: “any additional rise in prices is going to kill their business.”

The decision of the sector does not stop hiding certain ironies. The main one: that the restriction be applied precisely in a country in which oil represents 40% of GDP. Two other relevant data is that the measure will coincide —and in all probability will overshadow— a personnel strike to demand salary updating; also that companies pay for their fuel in dollars and charge Nigerian passengers in the national currency, devalued in recent months.

Although Nigeria is the first to take such a drastic step, is not the only country that has had to make a move due to the rise in fuel prices. In it Blaise Diagne International Airportin Senegal, have already warned that they cannot guarantee fuel for planes from other countries , which has already led European operators to carry out technical stopovers in the Canary Islands or Morocco.

Images | Ikarasawa (Flickr) Y Sm105 (Wikipedia)