Airlines demand 5% fuel surcharge be eliminated immediately.

Ibekimi Oriamaja Reports.

The Airline Operators of Nigeria, AON, has demanded that the 5 percent fuel surcharge levied by the Nigerian Civil Aviation Authority, NCAA, be removed immediately in order to avoid a backlash and the total shutdown of airline operations in the country.

The airlines’ trade association lamented that the increase in aviation fuel, also known as Jet A1, has increased their operational costs by more than 130 percent, adding that the need to eliminate the fuel surcharge cannot be overstated.

However, in a swift response, NCAA spokesperson Mr Sam Adurogboye stated that there was a misunderstanding about the fuel surcharge, stating that it was remitted to the Federal Government’s coffers rather than the regulatory agency.

However, in a letter addressed to NCAA Director-General Capt. Musa Nuhu and signed by AON President Abdulmunaf Yunusa, “AON wishes to seek your kind approval of fuel surcharge as a mitigating measure to cushion the effect of the continuous increase in the exorbitant price of Jet-Al on airline operations in the country.”

“In addition to the crippling effect of intermittent Jet A-1 shortages, the price has risen from N200 per litre in February 2022 to more than N780 today.” Airlines’ operational costs have increased by more than 130 percent as a result, but they are unable to raise fares and are also hampered by a lack of foreign exchange to conduct their operations.

“To avoid a backlash and a total system shutdown, airlines are hoping to implement a fuel surcharge of between 25% and 40% of NUC to offset the additional burden caused by increased fuel costs, bearing in mind that jet fuel accounts for approximately 40% of total operational expenses.”

“The Federal Government asked us to collect the money on their behalf, and we remitted it to them,” NCAA spokesman Sam Adurogboye said in response to the news. Passengers, not airlines, contribute to the NCAA’s 5 percent TSC and Cargo Sales Charge, or CSC.

“We take 5% off whatever their airfare is.” We used to collect this surcharge directly from passengers, but the airlines asked us to help them collect it in order to avoid airport delays.

“In order to raise funds to combat insecurity, the federal government imposed a 5% fuel surcharge.” So, if the letter is addressed to the NCAA, we will forward it to the Federal Government.”