Thomas Ogungbangbe, Group Managing Director of CITA Energies, has stressed that restoring the 98-kilometer idle pipeline at the Lagos airport would significantly reduce traffic congestion by keeping over 100 JET AI trucks off Lagos roads daily.
He said the pipeline, which has been non-functional for over three decades , would not only ease fuel supply to airlines but also eliminate surface transportation of aviation fuel, reducing costs and improving safety.â€
Speaking during the Gateway Colloquium organized by CITA in partnership with the League of Airports and Aviation Correspondence (LAAC) themed ‘Aviation Fuel Business: The Scenario and the Metaphor,’ Ogungbangbe said there is a need to have hydrants built into some of the airports so that the safety issues that comes with the pipeline issue can be taken out.
“Having these pipelines will save Nigeria millions of dollars. The responsible agencies should work together to look at the possibilities of restoring the abandoned pipeline. Most of the vessels that carry these products from Nigeria, go to other countries like Togo to do their repairs because we do not have the facilities. We need to secure things like these that will bring opportunities to Nigeria,†he explained.
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Speaking on the product quality, he said, enhanced inspection and real-time depot throughput monitoring are necessary to regulate small facilities operating at high volumes.
“The Nigeria Civil Aviation Authority (NCAA) mandates a minimum 7-day storage buffer; major marketers comply, but many smaller depots operate below the recommended 300,000L capacity, jeopardizing supply and safety
“Many airport depots lack a good road network for bowsers. Public-private partnerships (PPP) could drive infrastructure upgrades at key airports including Lagos, Abuja, and Port Harcourt,†Ogungbangbe said.
On into-plane fueling rights, he said licensing should require minimum storage, technical competence, and a history of reliable supply to ensure operational consistency.
He stressed that pipeline rehabilitation, storage expansion, and digital automation financed via PPPs can cut logistics costs and improve fuel availability.
“Jet A1 pricing in Nigeria reflects global and local factors, including refinery economics, logistics, and foreign exchange. Nigeria offers some of the lowest Jet A1 prices in West Africa, influenced largely by Dangote Refinery impact and local supply efficiencies rather than competitive market forces alone.
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Differences between international Platts prices and local costs arise from forex fluctuations, logistics, and levies. Creating a harmonized pricing index that factors in local production would improve transparency,†the CITA said.
He stated that a public pricing template detailing cost components such as crude, refining, logistics, forex rate, and margins would build trust between airlines and marketers.
He noted that although claims of marketer collusion are anecdotal, oligopolistic behavior exists due to high barriers to entry, adding that expanding refining capacity and encouraging new market entrants can foster competition.
He said an ideal approach balances liberalization to encourage competitiveness, with soft regulatory oversight (e.g., benchmark margin limits) to prevent exploitation during supply disruptions.
He said a public pricing template detailing cost components such as crude, refining, logistics, forex rate, and margins would build trust between airlines and marketers.
