Travel News

Written by RUTH NWOKWU  

The United Kingdom government has issued 255,000 of all types of UK visas to Nigerians seeking to study and relocate to the country within 12 months from April 2023 to March 2024.

British High Commissioner to Nigeria, Dr. Richard Montgomery, revealed the information during a meeting with the chairman of the Nigerians in Diaspora Commission (NiDCOM), Abike Dabiri-Erewa, in Abuja.

LEADERSHIP recalls that Montgomery had assured the Nigerian Government on Wednesday that adequate security measures were in place for its citizens amid deadly riots in the UK.

The High Commissioner emphasised that the UK remains a haven despite the ongoing unrest, highlighting the country’s diverse population, adding that 60 special courts have been set up to tackle criminal activities related to the unrest.

Montgomery also reported that approximately 400 individuals have been arrested in connection with the violence, with the government actively pursuing justice against those inciting unrest through hatred and disinformation online.

Reacting, NiDCOM chairperson Dabiri-Erewa confirmed that no Nigerian casualty has been reported so far.

According to her, NiDCOM was in touch with the Nigerian High Commission in London and other diaspora groups, none of which have reported any incident involving Nigerian nationals.

Dabiri-Erewa lauded the UK government for its prompt actions, particularly the arrests of perpetrators, and urged Nigerians to stay safe, and vigilant, and follow the travel advisories issued by Nigeria’s Ministry of Foreign Affairs.

By Jimisayo Opanuga

The Nigeria Immigration Service (NIS) has rolled out a new Visa on Arrival Application Process for all business travellers and African Union countries, except ECOWAS member countries.

Nigeria Visa on Arrival is a short visit visa issued at the port of entry.

The VoA facility is available to frequently travelled high-net-worth investors and intending visitors who may not be able to obtain visas at the Nigerian missions or embassies in their countries of residence due to the absence of the Nigerian missions in those countries or exigencies of urgent business travel.

Eligibility Visa on Arrival is available to citizens of all countries except ECOWAS nationals, who do not require a visa to visit Nigeria and other countries in which Nigeria has entered into visa abolition agreements.

Class of Persons Eligible to VoA

• Frequently travelled Business Persons of International Repute
• Executives of Multi-national Companies
• Members of Government Delegations
• Holders of United Nations Laissez-Passer
• Holders of African Union Laissez-Passer,
• Holders of ECOWAS Laissez-Passer,
• Holders of any other Official travel documents of other recognised International organisations who intend to visit Nigeria.

Requirements for Issuance of Visa on Arrival at the Port of Entry

• Visa Approval Letter (Pre-approved visa letter), valid for 14 days from the date of issuance
• Evidence of online payment
• Valid Passport with a minimum of six months’ validity
• Valid return ticket
• Two recent passport-sized photographs

How to Apply for Visa on Arrival

Step 1: Get Visa on Arrival Approval Letter

• Contact your Representative (Business partners, Company representatives, Protocol/Liaison officers, etc) in Nigeria.
• The Representative files a formal request for Visa on Arrival Approval on your behalf, stating the following: Name of visitor Passport number of visitor Nationality Purpose of visit Proposed date of visit Proposed port of entry Proposed airline Flight itinerary Address in Nigeria email address of the visitor Acceptance of Immigration Responsibility
• The representative shall attach the following documents in support of the application Copy of data page of visitor’s passport Copy of valid Return ticket

Timeline:

The request shall be processed and Approval issued within 48 hours (2 working days)

After the Approval Letter is obtained (hard copy) by your representative, an advanced copy will be forwarded to you by email, and copies of the same document will be forwarded to the Airline stated in your application, the immigration officer at the ports of entry

Step 2: Pay for Visa on Arrival

• Fill out the application form with your correct details and make payment online: https://portal.immigration.gov.ng

Note: Successful payment online is NOT AN APPROVAL. DO NOT PROCEED to Nigeria until you have received the “Visa on Arrival Approval Letter” issued by the Nigeria Immigration Service Headquarters, Abuja.

• Online payment may also be made at the point of arrival, subject to the presentation of the Visa on Arrival Approval Letter. Master Card, Visa and American Express cards are acceptable.

Step 3: At the Port of Entry

• Upon arrival at the port of entry, proceed to the marked Visa on the Arrival Desk for the issuance of an entry visa.
• Present your approval letter, passport and evidence of payment for you to be issued with an Entry Visa.

Step 4: Proceed for Immigration Clearance

Petrol prices have skyrocketed, with black market rates reaching N12,000 for 10 litres in Abuja.

The biting scarcity of Premium Motor Spirit (PMS), also known as petrol, which had hit the Federal Capital Territory (FCT) since over one month, became more acute at the weekend and spread nationwide, with fuel queues on a scale not seen in recent times, and the product selling for more than N1,000 per litre in some places.

The scarcity led to disruption of commercial and social activities at the weekend in Abuja and the country’s commercial capital of Lagos, as well as Kaduna, Kano, Port Harcourt, Niger, Nasarawa, and several other states.

Many filling stations shut down their operations due to the severe undersupply of PMS.

Although Nigerian National Petroleum Company Limited (NNPCL) had said the shortages were caused by “distribution” challenges, it did not specify the cause of the current spike, which had lingered in Abuja and environs for over four weeks.

But NNPC denied reports that it was indebted to international oil traders to the tune of $6.8 billion and that it had not remitted revenues to the Federation Account since January, among other allegations. 

In several parts of Abuja, a 10-litre container of petrol sold for as high as N12,000 on the black market, while private filling station owners sold for between N700 and N1,050 per litre, depending on location. However, the few NNPC mega stations in Abuja still sold for N617, but with queues stretching several kilometres.

The situation led to the skyrocketing of transport fares, with the doubling of rates in many routes within Abuja.

From the NNPC mega station on the Gwarimpa axis of the Zuba-Kubwa Expressway to Conoil and Total filling stations, directly opposite the headquarters of the national oil company in the Abuja city centre, as well as Salbas filling station at the Dei-Dei end of the Zuba-Kubwa expressway, the story was the same.

In Zone 1, the NNPC mega station on Olusegun Obasanjo Way was open, and the one opposite GSM village also had the product, but with extremely long queues. Other stations around the area, including Total filling station, did not have the product. The NNPC filling station in Mabushi did not open to the public when THISDAY visited.

Speaking on Arise Television at the weekend, the president of Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, blamed the situation on “panic buying”.

Maigandi said, “There was protest for almost seven days and most of the depots were not loading. During the protest, we informed all our marketers to sell their products in 24 hours so that there will be no side effects in terms of the purchase of the petrol.

“Immediately they called off, then we rushed to where we were supposed to load this product and we have started loading. Some of the trucks are already on the way, but we are having some challenges.

“The vessels that are supposed to bring the product to the tank farm were experiencing some delays in movement due to the rain, but that problem has been resolved.”

Separately, Maigandi told THISDAY how his members groaned under the supply shortage. He said petrol was the main product that kept them in business.

In what appeared to be a U-turn, Maigandi said NNPCL had not really told them what the issue was, beyond the logistics claims.

In Lagos, the current petrol scarcity assumed an alarming dimension, with most of the major filling stations shut while a few that opened for business were flooded by long human and vehicular queues that stretched along major roads.

Some marketers, who spoke with THISDAY, blamed the endless scarcity on huge subsidy payments, despite persistent claim by President Bola Tinubu and his team that subsidy had been removed from the petrol marketing equation in Nigeria.

The marketers said they had no option than to shut down their filling stations since the product was not available. They said only Tinubu had the answer to the scarcity, not NNPCL, which had become the sole importer of petrol and the risk bearer for the government.

THISDAY observed that on Awolowo Road in Ikoyi, Lagos, only the two NNPC mega stations were selling the product, but with heavy queues of desperate motorists and jerry-can-bearing buyers that crammed the facilities, causing heavy traffic gridlock on the busy road.

The Total filling station on Mobolaji Bank Anthony Way, Ikeja, was not selling, while the Northwest filling stations at Maryland Bus Stop was open, but with heavy queues that caused traffic congestion on Ikorodu Road towards Palmgroove.

The Conoil filling station in Ikeja, opposite LASUTH, was not open for business.

At the Cele-Okota axis, only Pinnacle filling station was selling as of Sunday, while other nearby stations, such as Conoil, Rainoil, Emadeb, Total, and MRS were shut.

Similarly, at Gbagada, at the foot of the Third Mainland Bridge, only Northwest Petroleum was selling, and still with heavy queues and resultant traffic congestion on the road.

The story was the same in Surulere, where most of the filling stations were either shut or open for skeletal trading with heavy queues.

Amid the scarcity on Sunday, NNPC sold between N650 and N700 per litre at its stations in Lagos. But private marketers that were open sold between N750 and N900. Black marketers, who sell in jerry-cans, sold as high as N1,500 to N2,500 per litre, depending on location and desperation of the buyer.

Expressing their frustration with the situation, some of the marketers, who spoke with THISDAY, anonymously, blamed the persistent fuel supply challenge on subsidy.

One of the marketers, who said he was a member of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), said the problem would not go away any time soon as long as there was still subsidy and the government was not willing to own up and address it once and for all.

He said, “What do you think is the problem? It is subsidy. Subsidy is heavy in the system but government keeps denying that. Have you checked the cost of petrol in other countries? No marketer will be willing to buy and sell below the cost price. So only NNPC can import and sell at below its landing cost because it is government; because only NNPC gets dollars at the official rate. No other marketer has that advantage.

“So, we have said it again and again that subsidy is not sustainable. Because it creates the kind of problem we are seeing. Because it kills competition and investor confidence. It creates corruption and lack of transparency. The moment you genuinely remove subsidy from petrol, you will not see scarcity again. It will now be based on willing buyer, willing seller.

“So, I think people should stop calling out NNPC and blaming them. It is not their own making. They are government and government tells them how they want the system to be run. Government made NNPC the sole importer of petrol and its risk-bearer. No NNPC chief executive can go against the directive of the president.”

A top official at 11Plc, owners of Mobil filling stations, told THISDAY that his company had run out of stock and had been waiting for new supply from NNPC.

In Rivers State, THISDAY investigation across local government areas and communities revealed that a litre of petrol had skyrocketed from N700 to between N880 and N900.

While some of the major marketers, including Oando and Conoil, sold at N900, other independent marketers sold between N870 and N888. NNPC sold at N591 per litre, but with long queues.

Visits to filling stations revealed that Stip International Global Venture, Jiang oil and gas, along NTA Road, Ozuoba, sold at N880 per litre, while Oando in old Port Harcourt Township, Conoil at Education Bus Stop in Diobu axis of Port Harcourt sold at N900.

Chikweri Petroleum and Giccel Limited in Ogbogoro, Obio/Akpor, sold at N880 and N900, respectively. Izumba Filling Station on Rukpokwu by C4i checkpoint and Hydropet along Eliporanwa, Rumuolumeni, sold at N900.

Request Filling station at Igwurita sold the product at N888 per litre, Eterna Filling station at Rumuokwuta sold at N870, while NNPC on Aba Road by Road Safety office, sold at N591 per litre.

In Kaduna State, PMS sold at few filling stations cost between N760 and N950 per litre, depending on where the stations got their supply.

At Omosco filling station, located along Yakowa Way, Kaduna, petrol sold for N950 per litre, while at Rain Oil, located at Refinery junction, Kaduna, and Mobil filling station located along Warf Road, Kaduna, it cost between N880 and N760.

Many of the NNPC mega stations located along Marraban Rido after Indomie factory, Barnawa near Living Faith Church, and Ali Akilu Way, among others, did not have the product.

Transport fares also rose in Kaduna as a result of the hike in petrol prices. Fares from places like Sabon Tasha, Gonin-Gora, Narayi and Kakuri among other areas within the metropolis, which used to be between N250 and N300 to the Central Market, now cost between N400 and N500.

The situation was not different in Kano, with long queues resurfacing, as motorists struggled to buy petrol, which cost over N800 per litre.

Checks revealed that both the independent and major marketers in Kano had earlier closed their outlets throughout last week. Motorists queued in large numbers at Total filling stations along BUK, and Zoo road, with motorists buying for N889 per litre.

There were long queues at Aliko filling stations along Maiduguri road, Zaria road, and BUK road, as motorists waited in line for an extended period to buy the fuel sold at N750 per litre, which was considered the cheapest compared to other filling stations.

NNPC sold the product at N617 per litre, but had extremely long queues.

However, most of the filling stations, particularly those located on the outskirts of Kano, took advantage of the fuel shortage and high demand by charging exorbitant prices, up to N1,000 per litre.

NNPC blamed the current product shortage on evacuation challenges, and promised to resolved it by midweek.

In a terse response to THISDAY’s inquiry, earlier on Sunday, Chief Corporate Communications Officer of NNPC, Mr Femi Soneye, stated, “We are currently experiencing some evacuation challenges in Lagos, but they should be resolved by midweek.”

Similarly, in a short statement issued afterwards, Shoneye said NNPC regretted the shortages in fuel supply, which he said resulted from distribution challenges.

He urged motorists to shun panic buying, as the company was working with relevant stakeholders to resolve the situation.

The statement read, “The NNPC regrets the tightness in fuel supply witnessed in some parts of Lagos and the FCT, which is as a result of distribution challenges. The company further urges motorists to shun panic buying as it is working round the clock with relevant stakeholders to restore normalcy.”

On Sunday, also, NNPC denied reports that the company was indebted to international oil traders to the tune of $6.8 billion and that it had not remitted revenues to the Federation Account since this year. 

Soneye stated, “Consequently, the following clarifications have become necessary: that NNPC Ltd. does not owe the sum of $6.8 billion to any international trader(s). In the oil trading business, transactions are carried out on credit, and so it is normal to owe at one point or the other.

“But NNPC Ltd., through its subsidiary, NNPC Trading, has many open trade credit lines from several traders. The company is paying its obligations of related invoices on a first-in-first-out (FIFO) basis.

“It is not correct to say that NNPC Ltd. has not remitted any money to the Federation Account since January. NNPC and all its subsidiaries remit their taxes to the Federal Inland Revenue Service (FIRS) regularly. This is in addition to payments of Company Income Tax (CIT) to road contractors under the Road Investment Tax Credit Scheme.

“In all, NNPC Ltd. is the largest contributor to the tax revenue shared every month at the Federation Account Allocation Committee (FAAC).”

On the issue of “quality/quantity fiscalisation” of imported petroleum products, NNPC said it had no role whatsoever as it was not a regulator.

Soneye stated, “The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which is the relevant regulatory agency in charge of such issues, is an independent body and does not report to the NNPC. “

He said NNPC was not averse to inquiries by the media into issues on and around its operations before dissemination to the public either through the print or electronic channels of communication as the company would always take the opportunities to state the facts.

He stated, “This is in line with the company’s commitment to the Transparency, Accountability, and Performance Excellence (TAPE) philosophy as emplaced by the Mele Kyari-led management since stepping into the saddle in 2019.”

Emmanuel Addeh, Peter Uzoho, John Shiklam, Ahmed Sorondinki and Blessing Ibunge

By Ogaga Ariemu

The average retail price of Automotive Gas Oil (Diesel) sold in Nigeria decreased by 5.71 percent in July, 2024 compared to June.

This is according to the National Bureau of Statistics latest AGO July’s price report released recently.

The report showed that the price of diesel decreased to N1379.48 per liter in July from N1462.98 in June.

However, on a year-on-year basis, the country’s price of diesel increased by 73.63 percent from N794.48 per liter recorded in the corresponding month of last year.

Looking at the variations in the State prices, the top three states with the highest average price of the product in July 2024 include Taraba State (N1721.79), Borno State (N1694.17), and Bauchi (N1619.54).

Conversely, the top three lowest prices were recorded in the following states: Kogi State (N1186.31), Kano State (N1211.11), and Osun (N1246.82).

By Olasunkanmi Akinlotan

The Federal Airports Authority of Nigeria said plans have been concluded to establish magistrate courts across the airports in the country.

The authority stated that the development was in continuation of the fight against rogues in airports, ensuring that violators of airport rules get an instant judgment.

The Managing Director/Chief Executive of FAAN, Mrs Olubunmi Kuku, disclosed this at a meeting between FAAN management and heads of security agencies at the Nnamdi Azikiwe International Airport, Abuja, on Friday.

According to FAAN, the meeting was organised to inform airport stakeholders of recent happenings at the airport, educate them on the strategic goals of the current management, and discuss ways of enhancing passenger experience and facilitation.

The FAAN boss identified the presence of rogues and loitering by members of the public as a major challenge to making genuine airport users comfortable.

“There are people who have absolutely no business being at the airport, and they continue to create issues for us.

“We have an anti-touting taskforce, and as it is, we are going to start the prosecution onsite of those engaging in these illicit activities or loitering around the airport environment and harassing passengers. This does not happen elsewhere around the world, and the airport should be a safe space,” she explained.

She further said that some car hire operators were violating processes and protocol and warned that such behaviour would no longer be tolerated.

Kuku reiterated the need to reduce manual baggage searches at the international wing of the airport, adding that a process would be put in place where baggage would go through screening machines, and security officials would view the contents in real time and only pull aside luggage that requires secondary screening.

“We have to streamline our efforts. We need to improve processes at the airport. This is the 21st century, and we must keep up with the times,” she noted.

BY  Edwin Okoth

NAIROBI, Aug 19 (Reuters) – In eight years of working as a taxi driver in Kenya’s capital, Judith Chepkwony has never seen business this bad.

A bruising price war between ride-hailing companies Uber Technologies UBER.N, Estonia’s Bolt and local start-ups Little and Faras has driven fares down to a level that many drivers say is unsustainable, forcing them to set their own higher rates.

“Most of us have these cars on loan and the cost of living has risen,” Chepkwony told Reuters. “I try to convince the customers to agree to the higher rates. If they can’t pay, we cancel and let them find another driver.”

About half the passengers who get in touch eventually agree to pay more than the price flashing up on their app generated by the companies’ algorithms, Chepkwony said, keeping her going.

But Uber has said such arrangements break its guidelines and told its drivers to get back into line, setting up a clash between the slick, automated world of the international ride-hailing industry and the messier realities of one of its biggest developing markets.

The East African nation of 50 million people has been rocked by deadly protests against tax hikes which, together with high prices of basic commodities and elevated interest rates, has been blamed for lower disposable incomes.

Kenya, Nigeria and Tanzania – with their growing economies and relatively low car ownership rates – are among the most important markets for Uber in Africa, its executives have said.

But there have been challenges along the way. Drivers have gone on strike in Kenya, twice this year and at least once last year, over low commissions.

Uber Head of East Africa Imran Manji told Reuters it was reviewing reports of customers being overcharged. “We encourage all riders to report such instances.”

Linda Ndung’u, Bolt’s manager for Kenya, said they were discouraging fare-hiking while the industry searches for a solution to balance the needs of drivers and customers.

While everyone waits, the drivers are finding ways to get round the industry’s united front.

Many say they use walkie-talkie app Zello to collectively agree on higher prices, meaning a customer will get the same rate even if they shop around.

Drivers have also produced a fare guide, which they print, laminate and post up inside their cars for customers to see.

One seen by Reuters set the minimum fare at 300 shillings ($2.33), above the 200 shillings set by Uber and Bolt who sometimes offer further discounts.

“We first ask the client where they are going and how much is shown on the app. Then we propose a rate based on our chart which can also be done by quickly multiplying by 1.5,” Nairobi-based driver Erick Nyamweya said.

“If they agree, we take the ride. If not we either negotiate further or decline because the current rates are not sustainable with higher fuel and spare parts prices.”

There has been some movement. Local start-up Faras Cabs raised its fares by up to a fifth this month to accommodate drivers’ demands, Chief Commercial Officer Osman Abdi said.

At the end of the day, it is the customer that pays, in money and time spent haggling.

“The negotiations end up taking so much time that it ends up beating the logic of trying to save time by taking a cab,” said one customer, Lameck Owesi. “It is frustrating.”

($1 = 128.5000 Kenyan shillings)

(Reporting by Edwin Okoth; Editing by Duncan Miriri and Andrew Heavens)

Andrew Mill

DOHA, Aug 20 (Reuters) – Qatar Airways announced on Tuesday it was acquiring a 25% stake in Africa’s Airlink, expanding the state-owned Gulf carrier’s portfolio of minority holdings in other airlines.

The investment would allow Airlink to expand to new markets in Africa, potentially in East and West Africa, the Airlink’s Chief Executive Rodger Foster said at a news conference in Doha.

Airlink is a privately-owned, regional airline operating in southern Africa, according to its website.

Qatar Airways also owns minority stakes in British Airways owner International Airlines Group, Latam Airlines, Hong Kong’s Cathay Pacific Airways, and China Southern Airlines.

(Reporting by Andrew Mills; writing by Alexander Cornwell; editing by Mark Heinrich and Sharon Singleton)

By Ben Elgin

(Bloomberg) -- In the quest to shrink the outsized climate impact of air travel, airlines across the globe have vowed to consume vast quantities of greener jet fuel. But most airlines are lagging far behind their pledges, according to a Bloomberg Green analysis of corporate environmental filings for 2023. 

Although many airlines have promised to get at least 10% of their propellant from cleaner sources by the end of the decade, the use of sustainable aviation fuel, or “SAF,” grew from 0.04% of global aviation fuel in 2021 to 0.17% in 2023, according to estimates from the International Air Transport Association (IATA).

European airlines are trouncing competitors in the US and elsewhere. That’s due, in part, to a government mandate, with the European Union requiring airlines to use 2% SAF starting next year. Other governments are following with mandates of their own, including the UK, Singapore and British Columbia. By contrast, the US has embraced a voluntary approach, with the government offering lucrative incentives for SAF but not requiring airlines to purchase the cleaner fuels, which cost about three-times more than conventional jet fuel.“There’s a real meaningful stick forcing [European airlines] to use it,” says Nik Pavlenko, who leads the fuels team at the International Council on Clean Transportation, a nonprofit think tank. “In the US, there’s still a bit of cognitive dissonance between the 2050 net-zero claims and the excitement about SAF, and what airlines are actually willing to pay for if they don’t have to.”DHL Group leads the world in SAF adoption, getting more than 3% of its aviation fuel from cleaner sources last year. To achieve this, the Bonn, Germany-based cargo carrier purchased more lower-emission jet fuel than all US airlines combined. In stark contrast to its European competitor, Memphis-based FedEx Corp. didn’t purchase any SAF last year, despite a pledge to get 30% of its jet fuel from cleaner sources by 2030.

Air France-KLM, meanwhile, led all passenger airlines last year with 1.1% SAF. That’s more than six-times the percentage of the US leader, United Airlines Holdings Inc., which has heavily advertised its pursuit of cleaner jet fuels. It used 0.17% SAF.“Carrots, on their own—I don’t think they’re that effective,” says Marina Efthymiou, a professor of aviation management at Dublin City University Business School. She encourages governments to use both incentives and mandates to get the SAF market off the ground.

Officials at several US airlines told Bloomberg Green that they’re committed to ramping up their use of cleaner fuels. While the available supply has been limited, things are starting to pick up, say industry officials, who point to US government data showing the amount of SAF produced or imported into the country doubled in the first half of this year compared to all of 2023.

“That’s the kind of exponential growth we’ve been hoping for,” says John Heimlich, chief economist at Airlines for America, an industry trade group.But, because SAF remains significantly more expensive, adds Heimlich, mandates would cause the price of air travel to spike. “It would just make air travel more expensive and less plentiful for all the customers,” he says.United declined to comment on the SAF numbers, while a FedEx spokesperson said in an email that the recent uptick in the production of cleaner fuels is a great sign given the market’s “fits and starts of the past decade.”The task ahead for all airlines remains staggering. Aviation accounts for about 2.5% of humanity’s carbon dioxide emissions. But that number is expected to climb as air travel increases and other large sources of climate pollution, such as power plants and automobiles, move to cleaner alternatives. Battery-powered planes likely won’t have the range to handle long-haul flights, where most emissions occur; while hydrogen-powered planes could be decades from reality. This leaves cleaner fuels—made from lower-emitting sources like used cooking oil, animal tallow and energy crops—as the airline industry’s primary hope for shrinking its climate impact.Dozens of new SAF plants are expected to come online in the next several years. Diamond Green Diesel, a joint venture between Valero Energy Corp. and Darling Ingredients Inc., says that its plant in Texas, capable of producing up to 235 million gallons of SAF per year, will start operating by the end of this year.

But other highly anticipated sources of cleaner fuels have stumbled badly. Fulcrum BioEnergy, which raised over $1 billion to convert municipal waste into liquid fuels, laid off most of its staff and halted operations in May, as first reported by Bloomberg Green. The dire turn of events casts doubts on the future of Fulcrum’s flagship plant, located outside of Reno, Nevada, as well as its future garbage-to-fuels facilities planned for Indiana, Texas and the UK.

The choppy progress for new plants prompted IATA this summer to slash its estimate of future SAF production by almost 20% through the end of the decade. Meanwhile, Air New Zealand Ltd. pulled the plug last month on its 2030 climate target, citing, in part, the scarcity of lower-emission fuels.

The shortage of cleaner fuels makes DHL’s market-leading numbers more remarkable. When the company announced a plan to accelerate its emissions reductions in 2021, it pledged to spend €7 billion over the next decade to make it happen. Last year, this included €113 million to cover the extra cost of SAF versus conventional jet fuel.

“We are serious about what we are doing,” Yin Zou, DHL’s executive vice president of corporate development, told Bloomberg Green in an interview last year. “We scratch every inch of the surface of the earth trying to look for providers” of cleaner jet fuel, he added.

DHL isn’t flush with cash compared to its competitors. It notched profits of about $4 billion last year, on par with those from FedEx. Meanwhile, United Parcel Service Inc., which generated almost $7 billion in profit and has pledged to use 30% SAF by 2035, didn’t disclose its volume of cleaner fuel last year, only describing it as “not material.”

“Supply remains limited and has not reached economies of scale, making it cost prohibitive for wide adoption,” a UPS spokesman said in a written statement.

For Efthymiou, the professor in Dublin, it often comes down to the commitment of the people leading these companies. While several are taking action, she says, “some airlines are more reactive. Until they’re put in the spotlight, they will not do anything.”

In about two years, 42 domestic aircraft have been grounded primarily due to a lack of foreign exchange to keep the airplanes flying or stringent regulatory actions in the country’s aviation sector, The PUNCH reports.

Findings showed that as of 2022, the number of aircraft plying domestic routes in Nigeria was 107. However, the challenges of forex and tough regulatory verdicts reduced this number to about 65, a 39 per cent plunge.

The crash in the number of operational domestic aircraft, among other industry challenges, contributed immensely to the very high airfares on local routes in the country, operators explained.

Checks by our correspondents showed that the average price for a one-way ticket to any destination has surged by approximately 180 per cent to over N150,000 in one year.

The average price of a one-way trip from Lagos to Abuja is now about N143,000, as against less than N51,000 that it was sold early last year, indicating a 180.4 per cent increase in price.

On the Abuja to Port Harcourt route, the average price of a flight ticket is N143,000 jumping from N45,000 in the corresponding period of 2023.

Similarly, a one-way trip ticket from Abuja to Enugu, which used to be N90,000 in 2023, now costs about N152,000 depending on the date chosen and how short the booking notice is.

This came as airline operators told our correspondents that they could not retrieve their planes which had gone on checks at different maintenance organisations outside the country over the non-availability of forex to pay for services and spare parts. Transactions regarding aircraft maintenance are largely done in foreign currencies.

This has caused a shortage of available aircraft amid the increasing number of air travellers in the country. The reduced number of aircraft has prompted a hike in airfares, making passengers lament.

Stakeholders called on the Federal Government to ease foreign exchange scarcity to prevent the further collapse of businesses in the sector.

Findings showed that aside from Rano Air, 12 scheduled airlines are operating across various airports in the country, using different brands of airplanes.

These airplanes include Airbus A320-300, A220-300, ATR, Embraer CRJ, Boeing 737 series, Embraer E2, Embraer ERJ-145, Dash 8, MD 83, and Bombardier CRJ 100/900, among others.

It was gathered that between 2022 and 2024, about 63 aircraft were reduced from the number of airplanes that operated on the domestic routes earlier.

Some affected airlines include Max Air, Overland Airways, United Nigeria, Air Peace, Aero Contractors, Arik Air, Dana Air, Azman Air, Green Africa, Ibom Air, ValueJet, and NG Eagle.

Findings from the sector indicated that Max Air at its peak operated six Boeing 737 aircraft but the fleet has depleted to just two airplanes as of the time of filing this report.

Also, United Nigeria Airlines with six aircraft at its peak; Embraer ERJ 145 (four) and Airbus 320-300 aircraft (two wet-leased aircraft), currently operates two ERJ 145 and two A320 wet-leased aircraft.

Findings showed the firm had expected the delivery of an aircraft in June. But up till the time of this report, the airline has yet to take the delivery.

Further checks showed that Aero Contractors currently operates three aircraft; two B737 (Cally Air operated by Aero), a Dash 8 aircraft, and one rotary wing. The airline had five aircraft in its fleet about two years ago.

Arik Air’s fleet depleted from 10, comprising B737, Bombardier CRJ-900, Fokker 50/60, and Dash 8, to the current four serviceable aircraft in its fleet including a B737.

An official of the airline who pleaded not to be named due to the ownership and debt crisis rocking the airline told the PUNCH that out of the remaining four serviceable aircraft, two were already out of the country for maintenance and would soon be joined by another one leaving the airline with just one surviving airplane.

The Federal Government through the Nigeria Airspace Management Agency grounded the aircraft recently and lifted the ban after a few days.

For Dana Air, before it was grounded in April, the airline operated two aircraft – MD 82 and B737. About two years ago, the airlines had a fleet of six aircraft, consisting of MD and Boeing fleet.

The Nigerian Civil Aviation Authority waded the big stick against the airline following an incident involving one of Dana’s aircraft at the Lagos airport on April 23, 2024, after the aircraft veered off the Lagos airport runway.

The decision to ground the airline was greeted by stiff criticism from aviation stakeholders. But the Minister of Aviation, Festus Keyamo, insisted that the issues with the airline had to do with safety concerns and could not be taken with levity.

Former commandant of the Murtala Mohammed International Airport, Lagos, Group Captain, John Ojikutu, tackled the minister for ordering the grounding of Dana airline, adding that skidding off the runway was not peculiar to the airline.

“What is the big deal in skidding? Is that the first time we would be experiencing such an incident in the aviation industry? What is the matter? And also, the minister has no right to ask the NCAA to ground the airline, not at all,” he stated.

The airline that is most hit by the economic crunch and dollar scarcity is Azman Air. For almost a year now it has not operated.

At its peak, the airline had seven aircraft, including leased airplanes, which were Airbus A320 and A330, while the remaining five were Boeing 737 aircraft, but it suffered gradual depletion till it no longer had an airplane to operate with.

The airline, which commenced scheduled flight services in 2014, had last August, sent its staff on compulsory leave due to its failure to return its aircraft that is on maintenance aboard.

Two out of the four aircraft were taken to Turkey for C-checks in a Maintenance, Repair, and Overhaul facility recognised by NCAA while the other two remained in an MRO facility in Nigeria.

While the leased aircraft had been returned to their original owners, the other aircraft owned by the airline were due for maintenance at different times, but the management could not raise funds to conduct checks on them.

This was largely because of the high dollar-to-naira exchange rate and the shortage of the currency available, sources at the carrier told one of our correspondents.

Also, Green Africa Airways operates a fleet of ATR 72/42 aircraft. At its peak, the airline had three aircraft but currently operates two airplanes as the third has also gone on maintenance checks.

Operators said ValueJet has three operational aircraft including Bombardier, CRJ 100, and CRJ-900LR. The PUNCH gathered that the airline will take delivery of an aircraft soon to swell its number of planes to four.

In the same vein NG Eagle, which commenced operations in December 2023 with three B737, now operates two wet-leased aircraft.

Our correspondent gathered that Overland Airways fleet, consisting of seven aircraft of ATR 42/47 and Embraer E175, had depleted to five aircraft.

A state-owned Ibom Air with about six aircraft of A320 and Bombardier CRJ-900 currently operates four airplanes: A220 and CRJ-900.

It is understood that Valuejet has its three aircraft-CRJ 900-currently flying.

Recent research by nairametrics, an online media outfit, revealed that every year Nigerian airlines and private aircraft owners spend at least $1bn on the maintenance of their aircraft fleets.

But this huge amount is spent outside the country as Nigeria is believed not to have a major aircraft maintenance, repair, or overhaul facility, where comprehensive checks of airplanes can be conducted.

Although there are Aero MRO, 7 Star Global Hanger, and Overland Airways Maintenance Hangar facilities, including the Ibom Air aircraft maintenance facility, which is yet to be completed, Nigerian airlines still take the majority of their fleet overseas because existing hangars in Nigeria do not have capacity and cannot attend to many aircraft at the same time.

Unconfirmed industry sources said Air Peace currently has about nine aircraft undergoing maintenance overseas. Earlier, several months earlier, the carrier had said it had about 15 aircraft undergoing maintenance overseas.

While delivering a paper at the Nigerian Bar Association conference recently, the Chairman/CEO of Air Peace, Allen Onyema, said the airline had about 15 aircraft in maintenance facilities overseas.

He also said the airline had about $14m stranded in the Central Bank Nigeria.

“Do you know the amount this country spends on aircraft maintenance through its airlines? Air Peace alone in 2022, spent N78bn on maintenance and these funds went to foreign countries,” he stated.

Operators, experts react

Industry experts attributed the major challenges confronting the airlines to the forex crisis, the continuous rise in importation levy by the Central Bank of Nigeria, and tough regulations in the aviation business.

A renowned aviation expert, Olumide Ohunayo, asked the Federal Government to be technical in approaching issues concerning the aviation sector.

Ohunayo frowned at giving money to the airline operators to salvage the challenges facing them. He advised that practical solutions such as resolving specific issues rather than giving money to resolve contending issues should be explored.

He also called for the relaxation of hurdles barring interested persons from joining the industry.

He noted, “Firstly, I do not support throwing money at every issue in the aviation sector because the same has been done several times and there haven’t been commensurate achievements to show for it. I won’t support giving any round of money to the airlines. Rather, their issues should be investigated.

“Maybe issues of their partners, special windows even as it concerns forex and so on. Airlines can’t live in isolation of the economy, and we must consider that. When issues of the economy and forex are addressed, we will all smile.

“Also in regulation, people are willing to join the industry, but the hurdle is so high. In America, for instance, there are two categories of scheduled operators – Party 135 and Party 121. Those of 135 have a lower standard for computer aircraft and this can be operating smaller aircraft and by doing that, we are creating more employment. The standard computer aircraft can greatly relieve the other scheduled aircraft. Also, licenses in other climes are done between two to three months.”

Also commenting on the development, the Chief Executive Officer of Aero Contractors, Capt Ado Sanusi, said the industry’s capacity had been on the decline in recent months due to various challenges.

Sanusi observed that some of the aircraft taken out of the country for maintenance checks in the past two to five months had yet to return because of the naira exchange rate to the dollar.

He regretted that the exchange rate had increased probably by 30 per cent in recent months, while the costs of spare parts had also increased by about 20 per cent within the same period.

To address the challenges, Sanusi proposed the domestication of leasing companies and the stability of the naira-to-dollar exchange rate.

He said, “We are facing the greatest economic challenge in my lifetime. The naira is still falling. Inflation is still high, food insecurity is still there, and disposable income is dwindling.

“It is going low. The airlines are looking for business and leisure travel. Companies need to be prosperous to travel for meetings, but that is being reduced because of the economic activities in the country.”

High insurance premium

Airline operators also said the rise in the cost of insurance coupled with the insufficient operational capacity of insurance companies are pushing up airfares and necessitating double insurance for airplanes.

In an interview with one of our correspondents, the Chief Operating Officer of United Nigeria Airlines, Osita Okonkwo, elaborated on the challenges faced by airlines due to these insurance limitations.

“It is about the capacity of the insurance companies because aircraft prices are big, and most of the insurance companies require $350m to $600m on Combined Single Liability.

“So they want you to carry that kind of insurance, and by their judgment, they feel that there is no insurance company that has the capacity to do it locally,” Okonkwo explained.

He further noted that lessors often demand that risks be internationalised, requiring airlines to seek insurance coverage from markets in places like Dubai and New York.

“There is a regulation here by the National Insurance Commission that says insurance must be placed locally, but there’s no capacity,” he added.

“When you now go as a Nigerian operator, they increase the premium, and you are forced to take two insurance schemes, one local and one international if you must lease or buy a new aircraft,” he noted.

The Chief Executive Officer of Centurion Security Limited, John Ojikutu, highlighted the limitations of Nigerian insurance companies in covering airline risks.

“The air insurance in Nigeria is high. How many insurance companies in Nigeria have the capacity to insure airlines? This is because they can’t carry the burden,” he remarked.

Ojikutu also pointed to unresolved issues from past airline crashes, questioning, “Some of the people who died in the 2005, 2007 crash in domestic airlines, how many of them have gotten their compensation?

“We have to start from there. I do not know if they have finished paying the victims of the crash and even Dana Airline.”

Aviation expert, Ayo Obilana, echoed these concerns, attributing the surge in air ticket prices to the high insurance costs.

“I think the (aviation) minister is right to say that high insurance costs are responsible for the surge in air ticket prices. The underlying reasons stem from the fact that the insurance deals are in foreign currency,” Obilana stated.

Recall that Keyamo told journalists while attending a summit in Lagos that if an airline purchased an aircraft, it was an international requirement that the plane had to be insured, but no insurance company could do that in Nigeria.

He added that many lessors were not operating in Nigeria because of insurance, a situation he said was killing the business.

Keyamo said, “But then, I apologise to say that most of them don’t have the capacity. So when you give them, they go and reassure again and that is a double amount for them too. That is why you are seeing a rise in the cost of tickets. The cost is too much. That is what translated to these high fares, and ticket prices we are seeing.

“So, we apologise to Nigerians, but then, we have a lot to do so that prices can come down,” he noted.

Addressing the claims that insurance costs were driving up airfares, Ohunayo, who is a member of the Aviation Round Table, an aviation think tank, told our correspondent that the challenges were beyond just insurance.

“If countries in the continent are having their airlines and are making these mandatory requirements, how can Nigeria be different?” he asked.

Reflecting on past practices, he noted, “Before poor forex, Nigerian airlines were leasing aircraft. Dry lease, wet lease, buying new aircraft—our problem was the ability to manage it. But they were leasing aircraft to Nigerians, both public and private, and every aircraft you see must be insured by law.”

Ohunayo argued that the real issue lies in the economic environment, particularly the scarcity of foreign exchange, rather than the capacity of local insurance companies.

“If this was happening before the advent of the skyrocketing dollar to naira, then it shows that it is not about insurance companies, but there are other economic policies that are making it difficult for people to procure those dollars to pay for the insurance,” he explained.

“The problem is not about insuring those aircraft, but about having enough dollars to pay for maintenance, for purchase, lease, and also insurance.”

He further clarified the distinction between leased and purchased aircraft in terms of insurance responsibilities.

“For leased aircraft, it comes with insurance. The owner of the aircraft will not ask you to go and pay the insurance. The insurance is part of the leasing agreement. It is when you buy your own aircraft that you make your own arrangements,” Ohunayo said.

He highlighted the imbalance between supply and demand, which is also contributing to rising airfares. “Today, we have more passengers chasing the few seats available, and that’s why the fares are up,” he stated, urging a focus on addressing liquidity issues.

While acknowledging the limitations of Nigerian insurance companies, Ohunayo cautioned against undermining their role in the industry.

“Yes, our insurers are not strong enough for one of them to take it alone, but Nigerian insurance companies have been partaking in insuring Nigerian airlines in the past and are still doing so. They partner with some foreign organisations, but they still take the lead,” he said.

By Princess Etuk

Aviation workers have decided to cancel their planned protest concerning the Federal Government’s demand for 50 per cent revenue collection from the agencies.

The scheduled strike was meant to be held today (Wednesday).

The Secretary of the Joint Aviation Trade Unions Forum, Nnadi Hector, said the protest was halted following a directive from the government aimed at resolving tensions within the aviation sector.

Hector clarified the nature of recent protests held by aviation unions, emphasizing their peaceful intent to highlight the challenges faced by industry agencies.

“Aviation all over the world is a service industry; magnanimously, the President intervened, though we have not seen a letter,” Hector stated, referring to the presidential directive.

“He directed, while he was not in the country, that it (revenue deduction) has been cut to 20 per cent. So it is a good step in the right direction.”

Recall that a week ago, aviation workers across Nigeria decided to embark on a nationwide protest starting on August 21, 2024, in response to the Federal Government’s continued deduction of 50 per cent from the internally generated revenue of key aviation agencies.

The unions had made this announcement in a letter dated August 14, 2024, titled, “Save Aviation From Collapse”.