The Mohammed Hayatu-deen Campaign Organisation, on Sunday, asked the Federal Government to immediately step in to avert the planned shutdown of operations by Airline operators in the country.
The organisation said as a matter of urgency, the apex government must embark on a two-pronged approach to mitigate the systemic risk the planned shutdown poses to an already fragile economy afflicted by enormous power shortages.
The organisation made the call in a statement signed by its director-general, Senator Isa Galaudu, on Sunday.
Galaudu described the astronomical rise in the price of aviation fuel (jet fuel A1) from N190 to N700 per litre as disturbing and disheartening, saying such portend grave danger to the country’s economy.
“This represents more than a 250% jump in price at a time when NBS is reporting official inflation of 15%. The Hayatu-Deen Presidential Campaign Organization is of the view that this deplorable outcome is another symptom of an economy that is in dire need of rescue from the claws of subsidy agents.
“The economy is fast approaching failure because of neglect and living in denial of policymakers at a time when industry-wide passenger revenue growth is increasing due to the risks and hazards of rail and road travel. As a consequence of this, airlines should be making more money and reinvesting in seat capacity,” the DG was quoted as saying in the statement.
On the two-pronged approach to be taken by government in mitigating the planned shutdown, Galaudu said, “First is the immediate need for a massive increase in supply by an import intervention to push down prices and stabilize the market. The other being a more fundamental and strategic move to address the structural imbalance of the industry. He said this would entail fast-tracking the revamp of the moribund refineries and accelerating the commissioning of the private refining capacity.
“These together with an efficient review of the failed subsidy system will bring down prices whilst simultaneously increasing output of refined products including jet fuel, diesel and PMS thus bringing the industry into full and dynamic equilibrium.”
He added that Nigerians were already feeling the weight of excruciating economic and social problems, and they do not deserve to be placed under additional unbearable stress.
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