TheCable

Nigeria is facing its worst recession in 29 years, and in dire need of foreign investors yet the country seems not to have airlines to fly them in.

The country is currently facing a myriad of challenges in its airline operators, making it increasingly difficult for investors to come in.

According to a report in Reuters, foreign airlines flying to Nigeria have started to refuel abroad to beat expensive prices in Nigeria.

The crash in the naira since an effective devaluation in June has led firms who market jet fuel locally, such as Total, Sahara and ConocoPhillips, to double the price to N220 per litre in August, and to as much as N400 in August.

To make matters worse for the airlines, the oil traders are requesting that payment for jet fuel be made in dollars, which is hard to get, rather than in the local currency.

John Ashbourne, an economist with Capital Economics, said: “The economy is crying out for investment, and now it is going to be even harder for anyone to visit.

“Who is going to want to park a billion dollars in a country that you can’t even easily fly to? It sends the worst possible signal.”

An airline executive, who spoke to Reuters, said “it’s an impossible situation”.

“The oil marketers don’t want to sign long-term agreements anymore so we have to accept whatever prices they demand. We sell tickets in naira and now they want us to come with dollars,” he added.

Iberia and United Airlines have cancelled their services in Nigeria, while Aero Contractors and FirstNation have suspended services.

Emirates has started a detour to Accra, Ghana, to refuel its daily Abuja-bound flight, and has already cut its twice-daily flights to Lagos and Abuja to just one.

Arumemi Ikhide, Arik Air CEO, had said earlier that airlines currently operating in Nigeria are only doing national service.