The previous managing director of the Federal Airports Authority of Nigeria (FAAN), Dr Richard Aisuebeogun, has warned that the aviation gasoline market in Nigeria dangers being monopolised as entrepreneurs proceed to indicate reluctance to import aviation gasoline, also called Jet A1.
Talking throughout the Gateway Colloquium organized by CITA in partnership with the League of Airports and Aviation Correspondents (LAAC) themed ‘Aviation Gas Enterprise: The Situation and the Metaphor,’ Aisuebeogun mentioned, the present development may result in a state of affairs the place a single dominant provider controls the market.
Dr Aisuebeogun, who can also be the Co-founder of Geometric Aviation Synergy Companies Ltd, cautioned that such a state of affairs may lead to worth manipulation and inefficiencies within the sector.
“At current, most of the entrepreneurs you see, and plenty of of them are right here with us, are reluctant to import jet gasoline because of uncertainty. The unlucky factor is that if we permit this to proceed, there’s a danger {that a} single dominant provider will emerge. And if that occurs, it should doubtlessly result in worth manipulation and market inefficiencies,” he mentioned.
He additional pressured the necessity for robust regulatory oversight to forestall monopolistic practices and guarantee honest competitors within the business.
“We should combat towards that. It’s like working away from one drawback and working into one other, and that’s not what we would like. Value management will not be possible when that occurs. Our regulatory oversight in stopping monopolistic practices and inspiring honest competitors stays the important thing driver for market stability and client safety,” he added.
Although, Dr Aisuebeogun mentioned home refining, if carried out adequately, will cut back import dependency, he argued that new refinery and rehabilitation of current ones is pivotal to profitable availability of jet gasoline.
“The inauguration of a brand new refinery and the rehabilitation of current ones clearly is pivotal within the shift to profitable manufacturing of Jet gasoline. Since we’re targeted on jet gasoline and, in fact, different petroleum merchandise, however basically jet gasoline on this case now. Now, the fascinating factor is that home refining, if carried out adequately, will cut back import dependency.
“It is going to stabilise provide, and it’ll improve high quality management and naturally, all of those are midwived by companies chargeable for regulation,” he acknowledged.
Talking earlier, the group managing director of CITA Energies, Thomas Ogungbangbe, pressured that restoring the 98-kilometer idle pipeline on the Lagos airport would considerably cut back site visitors congestion by protecting over 100 JET A1 vehicles off Lagos roads every day.
He mentioned the pipeline, which had been non-functional for over three many years , wouldn’t solely ease gasoline provide to airways but additionally remove floor transportation of aviation gasoline, decreasing prices and bettering security.”
Ogungbangbe mentioned there was a have to have hydrants constructed into among the airports in order that the protection points that include the pipeline may be eradicated.
“Having these pipelines will save Nigeria thousands and thousands of {dollars}. The accountable companies ought to work collectively to have a look at the probabilities of restoring the deserted pipeline. A lot of the vessels that carry these merchandise from Nigeria, go to different international locations like Togo to do their repairs as a result of we would not have the services. We have to safe issues like these that may convey alternatives to Nigeria,” he defined.
Talking on the product high quality, he mentioned, enhanced inspection and real-time depot throughput monitoring are needed to manage small services working at excessive volumes.
“The Nigeria Civil Aviation Authority (NCAA) mandates a minimal 7-day storage buffer; main entrepreneurs comply, however many smaller depots function under the really helpful 300,000L capability, jeopardizing provide and security
“Many airport depots lack a great street community for bowsers. Public-private partnerships (PPP) may drive infrastructure upgrades at key airports together with Lagos, Abuja, and Port Harcourt,” Ogungbangbe mentioned.
