• Thursday, July 18, 2024
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Stable forex seen as boon for Nigerian aviation fuel costs

Stable forex seen as boon for Nigerian aviation fuel costs

Stability in Nigeria’s foreign exchange market could significantly benefit the aviation industry by reducing jet fuel costs, according to Asharami Synergy Limited, a Sahara Group downstream company.

Foluso Sobanjo, head of downstream africa for Sahara Group, spoke at the recent International Air Transport Association’s Aviation Energy Forum in Vienna, Austria. He highlighted forex stability as a key factor for growth in the Nigerian aviation fuel sector.

Sobanjo while speaking on the growth factors for the Nigerian market, said the aviation fuel sector would benefit from adequate refining capacity, forex stability, cheaper sources of funds and infrastructure development.

Read also: Naira remains weak in official foreign exchange market despite increased dollar supply

He noted, “Achieving stability in the FX market would impact the Jet fuel market positively by reducing product cost, solving the liquidity issues facing the airlines and help with the repatriation of the investment made by foreign airlines which would spur further investments.”

According to him, suppliers need to be able to access credit at the right price as this would help to facilitate investments in essential infrastructure like tank farms, bowsers, and trucks.

“This would enhance operational capabilities and logistical efficiency, thereby supporting long-term growth and healthy competitiveness in the sector,” he stated.

Sobanjo also called for investment in infrastructure through sundry Public-Private Partnerships and collaboration among all stakeholders, including IATA, airlines, the Federal Airport Authority of Nigeria, and petroleum marketers to drive sustainable regulation, growth, and development of the sector.

While attributing the sterling performance in the aviation fuel market to the Asharami’s commitment to safety, technology-driven solutions and environmental sustainability, Sobanjo maintained that the firm had a pedigree of exceptional performance in the market that spans two decades in Nigeria.

“Asharami Synergy is the leading aviation fuel supplier in Nigeria with over 20 per cent of the market share. We have several certifications from the International Organisation for Standardisation in recognition of our commitment to excellence, quality, and safety. With current storage capacity of about 31 million litres owned and operated by Asharami across the nation, a fleet of 20 bowsers, and ongoing plans for capacity expansion, we keep innovating to deliver outstanding Jet A1 solutions,” he disclosed.

Sobanjo added that Asharami Synergy offers solutions that resonate with the operations of local and international airlines in Nigeria.

“Our distinctive mark of excellence and safety make Asharami the responsible provider of choice for aviation fuel in the Nigerian market,” he said.

Read also: Despite drop in foreign exchange rate, prices remain unchanged Nigerian Traders

Also speaking in Vienna, Nomnso Dike, the Chief Executive Officer, Asharami Synergy said the company had been a strategic partner with IATA since 2009, adding that its diversified product supply chain facilitates availability and competitive pricing in the market.

“We are constantly investing in technology to drive efficiency in our business hence the adoption of the solution that increases efficiency through digitalised tracking of our into-plane fueling operations, whilst also helping to reduce CO2 emissions.

“In addition, our dashboard tracks and analyses our customers’ consumption patterns, thereby enabling us to forecast demand accurately and ensure consistent product availability to meet all our supply obligations. This ensures our customers can rely on Asharami for responsible and seamless supply,” he stated.