Why There Is A Hike In Nigeria’s Aviation Industry


Source: ISO

The unpleasant Fuel scarcity situation across Nigeria is a major concern, Irrespective of the assurances from the government to sort out this crisis as soon as possible.

Diesel prices are surging which affects Vehicles and Aircraft that run on diesel. The fuel is also used across industries especially those into manufacturing. There has been a persistent and a seeming unending queues at the fuel station in major cities such as Abuja, Lagos and several other cities as people struggle to get petrol for their vehicles and their electricity generators.

This has lingered for several months, even though the federal government keeps saying it has sufficient stock of petroleum products for distribution across the country. However, it did not only affect motorists but Airlines.

Source: Premium Times Nigeria

Nigerians are laying complaints on the harshness of this state of affair and deprivation of their right. The inflation in price is a contributing factor to wavering prices and poor deficient operating system of the aviation industry.

Following the trend, a short strike occurred which some of Nigeria’s carriers refused to participate, but has ended today, 9 May, 2022. Admittedly, The impact of the hike in fuel price is affecting the economy as it plays a vital role to its growth.

Source: The Guardian Nigeria

The cost of transportation increases at the inflating cost of petrol which in turn affects everything else. Research shows that there is a connection between fuel usage and the growth of the economy.

The statistics office revealed the prices of goods and services, measured by the Consumer Price Index, fell 1.63 per cent points lower than the rate recorded in February 2021 (17.33 per cent)

Insufficient reserve, Diversion of products and Rate of clearance speed at petrol ports are some of the reasons for fuel scarcity.

Source: Travel off path

However, the suspension of this strike is a way to look at the positive turn at the current state of affair in the aviation industry, as all Airlines are allowed to function and a high expectations of balanced fuel rate.

The price of fuel has a record of fluctuations but can be a good time for investment. It is said that better  investments are made during strained times. As the Economy keeps fluctuating for different reasons, one is guided to make the most of these opportunities. The current state of increasing fuel prices may be the best time to invest in some assets.


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