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Soaring forex frustrating aviation fuel imports — Stakeholders

Key stakeholders in the nation’s aviation sector have continued to decry the skyrocketing differences between dollar and naira, saying the development is derailing their efforts to stabilize the supply of the product.

According to the Executive Secretary of Major Oil Marketers Association of Nigeria (MOMAN), Mr. Obafemi Olawore, scarcity of forex to importers of aviation fuel is not abating even though the Central Bank of Nigeria (CBN) recently gave out forex to some dealers in the intervention window.

Explaining that the government cannot bridge the supply gap for aviation or Jet A1 as done for petrol because of the shortage of forex, Olawale made it clear that “Government doesn’t have enough. If they give forex to petrol and to aviation fuel, it will affect other sectors. Now, it is even affecting the aviation sector. So, we are saying the government should try and manage it well so that we will have some forex to bring in aviation fuel.”

He further clarified that the existing deal between the federal government and international oil companies for the provision of forex was just for the importation of petrol, aviation fuel was not included.

He disclosed further that this December, he CBN has asked banks to submit bids for a “special currency auction,” targeting fuel importers to meet demand for matured letters of credit.