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FG to Meet CBN for Forex Allocation to Airline Operators

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forex inflows

By Adedapo Adesanya

The federal government, through the Ministry of Aviation, has assured airline operators that it would liaise with the Central Bank of Nigeria (CBN) for the allocation of foreign exchange (forex) to them at a single-digit interest rate as low as 1.5 per cent.

However, the central government said it would soon begin to compel domestic airlines to compensate passengers for incessant delays and cancellations of flights.

The Minister of Aviation, Mr Festus Keyamo, while speaking on flight disruption challenges during a meeting with the officials of Airline Operators of Nigeria (AON) in Abuja, said efforts would be made to make the sector adhere to global standard practices.

Mr Keyamo said, “The ministry will liaise with the CBN to see how operators can get Fx at a single-digit interest rate of 1.5 to 2 per cent as requested.”

He also said regulators will begin to implement the provision of the Nigeria Civil Aviation Authority (NCAA) Act that mandates airlines to compensate passengers for delays/cancellations of flight schedules caused by the airlines.

“So, you see, after some time, we will start implementing the provisions of the NCAA Act. You know, Nigerians don’t know there is compensation for delay. If it is an act of God, you cannot pay. But if it is human fault, the NCAA Act says you will pay,” the minister said.

Amidst weak regulation, many Nigerians have been victims of flight delays and cancellations across airports in Nigeria.

Mr Keyamo noted that airline operators are expected to pay customers for flight delays and cancellations.

“After some time, I will put my feet on the ground. Pay them when you delay, cancel their flight,” he said.

“I know you (the airline operators) have said all your reasons. You have blamed the government and a few things we do. But I also want to say that it is not all that is the government.

“At times, you say you were waiting for passengers to finish passing through the screening machine. At times, they have finished passing through screening machines. They are waiting in the lounge for five hours and you cancel your flight.”

Mr Keyamo noted that the government will soon begin the implementation of the NCAA act to seek justice for Nigerians.

On the part of AON, its Vice President and Chairman of Air Peace, Mr Allen Onyema, lamented that foreign airlines have been given preferential treatment in terms of intra-city operations which is not in line with international standards.

He said for instance “Air Peace flies to Mumbai in India but up till date they haven’t granted our request to fly to New Delhi because they don’t permit inter-city hoping and this is the practice almost everywhere around the world,” adding that it is shocking that it is only in Nigeria that international airlines are allowed to drop passengers in Port Harcourt then come to Lagos and Abuja.

“It is not practised anywhere and must be stopped,” he said.

At the meeting on Monday, the operators called for interventions into issues bedevilling airline operations in the country, lamenting that forex scarcity has become a major challenge for their operations in the country and called for the intervention of the CBN.

They also urged the federal government to establish and provide a dedicated support line for domestic airline operators to have unfettered access to foreign exchange through the CBN at the official I&E window.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Travel/Tourism

Airlines Face Fresh Turbulence Over Jet Fuel Scarcity

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Jet Fuel Scarcity

By Adedapo Adesanya

The National Association of Aircraft Pilots and Engineers (NAAPE) has revealed that Nigerian airlines are battling a severe jet fuel crisis, triggered by soaring jet fuel prices and supply shortages.

This is the latest blow to the aviation industry, which escaped an industrial action by airline operators over the price of jet fuel.

The latest development is increasing costs, disrupting flights and creating concerns about operational safety and sustainability.

According to Reuters, the persistent scarcity of jet fuel has triggered ⁠widespread operational challenges, including flight delays, route adjustments and extended crew duty periods, as airlines struggle to manage schedules amid rising costs.

According to the President of the association, Captain Bunmi Gindeh, the fuel shortages were pushing crews beyond planned limits, increasing fatigue and potentially eroding safety margins in an industry governed by strict rest regulations.

According to local carrier Rano Air, it revealed that jet fuel prices had more than quadrupled, as well as made some routes commercially unsustainable, forcing operational adjustments.

Other carriers have also begun rescheduling or cancelling flights and cutting unprofitable routes, industry ‌sources ⁠cited by Reuters said.

This comes at a difficult time for Nigeria’s aviation sector, already strained by foreign-exchange volatility, high aircraft maintenance costs, airport infrastructure strains and fuel price swings.

Airlines group, Airline Operators of Nigeria (AON), last month threatened to suspend operations over what they described as crippling and artificially inflated jet fuel prices.

Nigeria’s airline industry carries millions ⁠of passengers annually across an extensive domestic network and plays a critical role in connecting cities where road travel is often slow or insecure, making reliable air services economically and socially important.

The publication reported that the Nigerian Midstream ⁠and Downstream Petroleum Regulatory Authority (NMDPRA) has said fuel prices would not be capped, adding that any decisions on deregulated products would be formally communicated.

The crisis is worsening existing problems in Nigeria’s aviation sector, including forex instability, expensive aircraft maintenance and weak infrastructure.

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FG Unveils Leasing Initiative to Cut Airlines’ Fleet Acquisition Costs

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aviation workers

By Adedapo Adesanya

The federal government has approved the establishment of a national aircraft leasing company aimed at easing access to modern fleets for domestic airlines and transforming aviation financing in Nigeria.

The minister of aviation and aerospace development, Mr Festus Keyamo, announced the decision after a meeting of the Federal Executive Council (FEC), describing the move as a significant shift in how Nigerian carriers will acquire and finance aircraft.

Mr Keyamo said the proposed company would operate as a private-sector-driven Special Purpose Vehicle (SPV) with government backing.

“This initiative is a game-changer for our aviation industry. It eliminates the long-standing challenges Nigerian airlines face in accessing aircraft on competitive terms and positions the country as a hub for aviation financing in Africa,” he said.

According to the minister, the new platform will allow airlines to source aircraft through a centralised system, replacing the current model where operators negotiate individually with international lessors, often at higher costs and stricter terms.

Mr Keyamo noted that the government’s role would be largely supportive, providing sovereign guarantees to boost investor confidence, while private sector players drive the project.

“Through the Ministry of Finance Incorporated, the government will hold equity and earn revenue without direct financial investment. Our primary obligation is to provide the confidence investors need, especially in ensuring asset security,” he added.

The initiative, he said, has already begun attracting interest from both local and international investors, signalling early confidence in its viability.

Beyond supporting Nigerian carriers, the leasing company is also expected to extend services across West Africa and the broader continent, positioning Nigeria as a regional hub for aircraft leasing.

Airlines in Nigeria have come into focus in recent weeks due to renewed concerns over the financial sustainability of operators, which almost forced them to suspend operations last month. However, the Bola Tinubu-led government approved a 30 per cent relief on debts owed by local ‌airlines to aviation agencies and ordered talks involving fuel marketers, airlines, and ​regulators to reach a ​fair jet fuel price.

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Passengers to Enjoy Starlink Wi-Fi on Emirates’ Flagship A380

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Emirates A380 Starlink

By Aduragbemi Omiyale

Air travellers flying through Emirates will enjoy Starlink Wi-Fi onboard after the completion of the installation of the internet service on the company’s flagship A380.

The introduction of Starlink on the A380 builds on Emirates’ ongoing investment into redefining the customer journey, including one of the most ambitious retrofit programmes in aviation history.

The airline operator recently test-run this on a flight to Dubai, and it allowed passengers to enjoy seamless broadband while flying at 40,000 feet.

The Emirates A380 was one of the first commercial aircraft in the world to offer internet to its customers, with first-generation systems offering a total aircraft bandwidth of less than 1 Mbps. The installation and certification were accomplished in Newquay, UK.

With more A380s scheduled for accelerated installation throughout 2026, Emirates customers will soon enjoy a transformative leap in onboard connectivity with the ability to stream, game, browse, and work throughout their journey on personal devices.

The service will be complimentary for all customers, across all cabins, with easy sign-up and access. Future enhancements will include Live TV streaming over Starlink, initially on personal devices and later integrated into seatback screens.

So far, more than 650,000 Emirates customers have already flown on Starlink‑equipped flights, experiencing the benefits of next‑generation onboard connectivity firsthand.

As the world’s largest passenger aircraft, the A380 presents unique engineering challenges and opportunities. This industry-first Starlink configuration is designed to meet the demands of the A380’s ‘double-decker’ layout and high passenger capacity and is capable of delivering more than 2 Gbps of total aircraft bandwidth across the cabin.

Compared with the Emirates Boeing 777, the Emirates A380 features additional wireless access points and a third antenna to deliver an enhanced connectivity experience for its higher passenger capacity. Optimised inter‑deck integration supports a seamless Wi‑Fi experience, with customers able to enjoy high speeds depending on usage and device capability.

Starlink installations will soon begin at Emirates Engineering facilities in Dubai to accelerate deployment across the fleet.

Emirates is committed to bringing the best possible connectivity to its entire fleet at the earliest opportunity, with 25 Boeing 777-300ER aircraft already equipped with Starlink and the first A380 now joining service.

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