Business
Stakeholders Explain Why Nigerian Airlines May Not Cut Ticket Fares
Published
4 years agoon
By
Editor
Stakeholders in the aviation industry have said the charges paid by airlines in Nigeria and the cost of operation make it difficult for them to reduce their ticket fares.
A member of Aviation Round Table, Olumide Ohunayo, in an interview with our correspondent, said the cost of tickets was still rising due to the naira-dollar exchange rate.
He said, “Most of the expenses of the airline are denominated in dollars; they have to buy spares, train their crew and spend money on certification. When you put all these together, it is a big cost to them.
“Also, the aviation fuel price keeps getting worse. We do not refine, we transport. As you leave Lagos, the cost of the aviation fuel keeps rising.”
READ ALSO: Naira Recovery Against Dollar To Begin February 2021 – CBN
He added that the insecurity in the country had prevented airlines from expanding, as they had to spend so much providing security for some of their personnel, including expatriates, and other important guests.
Ohunayo said, “Almost all charges and payments to agencies have increased by ratio. All of these would return to the passengers. The tax collected by the Federal Airports Authority of Nigeria has also doubled.”
The Managing Partner, Aglow Aviation Support Services Limited, Tayo Ojuri, said, “At the moment, we might not anticipate low ticket fare because airlines have to put some factors into consideration such as the crew, maintenance insurance, as well as the cost of operations, including the aviation fuel.
“Airlines put these into considerations before determining their ticket fare. The lease is major; your lease is dollarised. Whatever money you make on your lease, you have to convert it to dollars. However, dollar does not exist at a preferential rate at the moment.
“Also the crew, operational staff down to the pilot, inflight crew have to go for their training every six months which is also dollarised.
“We do not have simulators for ATRs yet in Nigeria; maintenance also has to be put into consideration, likewise the insurance cost.”
According to him, other charges include landing and parking charges.
An aviation security expert, Group Capt. John Ojikutu (retd.), said airlines must carefully examine the cost of operation, and set reasonable fares for their tickets in order to make profits.
“You cannot fly to Abuja now that you are importing fuel, buying aircraft from foreign countries, importing spare parts in dollars, yet sell tickets cheap and expect to make profit.”
READ ALSO: Naira Slumps Further, Exchanges For 504/$ At Parallel Market
The Chief Operating Officer, Ibom Airlines, George Uriesi, said the price of aviation fuel have a major impact on ticket fares.
He said, “We have to fly, so we have as much as possible tried to take as much fuel as we can out of Lagos which is the cheapest fuel. But you still have to refuel everywhere you go. Every two or three days, they announce a new price to us and on the average, we are paying double.
“When you are paying twice the amount of what you were paying before for fuel, then you have to try to be efficient in all your other expenses. You have to look for a way to add a little to the ticket price.”
(PUNCH)
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Business
NNPCL Reduces Fuel Price After Dangote Refinery’s Adjustment
Published
2 weeks agoon
August 14, 2025By
Editor
The Nigerian National Petroleum Company Limited has reduced its premium motor spirit pump price on Thursday, according to DAILY POST.
It was confirmed that NNPCL retail outlets in the Federal Capital Territory, Abuja, have reduced their pump price to N890 per litre from N945.
This new fuel price has been reflected in NNPCL retail outlets such as mega station Danziyal Plaza, Central Area, Wuse Zone 4, Wuse Zone 6, and other of its filling stations in the nation’s capital.
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The latest downward review of fuel price in NNPCL outlets represents an N55 reduction in fuel pump price.
“It was reduced to N890 per litre this afternoon, down from N945,” an NNPCL fuel attendant told DAILY POST anonymously on Thursday.
This comes a Nigerian filling station, MRS Empire Energy, on Thursday adjusted their fuel pump price to N885 and N946 per litre, down from N910 and N955 per litre.
The latest fuel price reduction trend is unconnected to Dangote Refinery’s ex-depot petrol price adjustment by N30 to N820 per litre from N850 and the price of crude oil in the international market.

Dangote Petroleum Refinery has announced a reduction in the ex-depot (gantry) price of Premium Motor Spirit, PMS, commonly known as petrol, by N30, from N850 to N820 per litre, effective from August 12, 2025.
This was disclosed in a statement by the company’s spokesman, Anthony Chijiena, on Tuesday.
The 650,000-barrel-per-day plant said the move is part of its unwavering commitment to national development, assuring the public of a consistent and uninterrupted supply of petroleum products.
READ ALSO:Dangote Refinery Gets New CEO
“In line with our dedication to operational excellence and sustainable energy solutions, Dangote Petroleum Refinery will commence the phased deployment of 4,000 CNG-powered trucks for fuel distribution across Nigeria, effective August 15, 2025,” said Chijiena.
The announcement comes as the refinery prepares to commence direct fuel distribution nationwide. The development is expected to lead petroleum product marketers to reduce their pump prices in the coming days.
In Abuja, the retail fuel price stood between N885 and N970 per litre as of Tuesday evening.
Business
Indian Refiners Abandon Russia For Nigerian Crude, As Dangote Refinery Relies On US
Published
3 weeks agoon
August 11, 2025By
Editor
India Refineries have abandoned Russian crude for Nigerian crude, while domestic refiner Dangote Refinery relies heavily on West Texas Intermediate crude from the United States of America.
This followed a recent sanction threat by US president Donald Trump on India over continued patronage of Russian crude.
According to Reuters, industry sources said that Indian Oil Corporation recently bought one million barrels of Nigeria’s Agbami crude for September 2025 delivery in a tender awarded to global trader Trafigura.
Also included are one million barrels of Angola Girassol, one million barrels of US Mars, three million barrels of Abu Dhabi Murban, and two million barrels of Nigerian oil, according to Reuters.
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The report noted that the purchase is part of a broader sourcing spree that has seen Indian refiners secure millions of barrels from non-Russian sources post July 2025.
Meanwhile, Indian refiners secured purchases of Nigerian crude grades; the $20bn Dangote Petroleum Refinery in Ibeju-Lekki, Lagos, is relying on around 60 percent on US and other imoorts to feed its processing units.
Data showed that the refinery imported an average of 10 million barrels in July 2025, saying it was increasingly relying on the US for its feedstock despite the naira-for-crude deal with the Federal Government, which kicked off in October last year.
According to Reuters, the Indian Oil Corp and Bharat Petroleum have bought a million barrels of non-Russian crude billed for delivery in September and October after the US pressured India to halt purchases from Russia.
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Indian state refiners had been largely absent from the Nigerian crude market spotlight since 2022; they have in the past concentrated on Russian crude amid the Russian-Ukrainian war. However, the Indian refiners paused Russian purchases in late July 2025 after pressure from US President Donald Trump.
On the part of Dangote Refinery, data from commodities analytics firm Kpler showed that in July, US barrels accounted for about 60 percent of Dangote’s 590,000 barrels per day of crude intake, with Nigerian grades making up the remaining 40 percent.
In July, the Dangote refinery’s crude imports surged to a record 590 kbd—driven largely by US barrels overtaking Nigerian supply for the first time—amid ongoing domestic sourcing challenges, Kpler reports.
“While WTI has held a significant share in Dangote’s import slate since March, this is the first time US crude has overtaken Nigerian supply—a shift driven by several factors,” Kpler stated.
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