Photo caption : Pix from left Dr Betiku Olasimbo, MD/CEO, Mangrove Hills; Group Captain John Ojikutu (rtd) former Airport Commandant, MMIA, Lagos; Dr Richard Aisuebeogun, former MD/CEO, Federal Airport Authority of Nigeria, FAAN; Dr Thomas Ogungbangbe, CEO, CITA Energies Limited; Mr Chris Ndulue, former MD, Arik Air; Mr Martin Abhulimen, Regional Manager, Lagos &West Africa, Ibom Air; Eng Peter Dia, GM, OPS, Octavus and Eng John Abegunde, MD, COLT Engineering
The Group Managing Director of CITA Energies, Thomas Ogungbangbe,has advocated for the restoration of the 98-kilometer idle pipeline at the Murtala Muhammed Airport (MMA), Lagos as it would help reduce significantly the using of Jet- A1 trucks that are currently causing traffic on Lagos roads
He advocated for the pipeline while speaking at the Gateway Colloquium organised by CITA in conjunction with the League of Airports and Aviation Correspondence (LAAC), with the theme, ‘Aviation Fuel Business: The Scenario and the Metaphor,’ today in Lagos.
The CITA boss pointed out that the pipeline,has not been functional for over three decades, would help to make fuel supply to airlines easier and also eliminate surface transportation of aviation fuel, reducing costs and improving safety.
He also called for the installation of hydrants into some of the airports to avoid the safety issues associated with the pipeline .
According to him, “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.”
On product quality Jet -A1, Ogungbangbe said that inspection should be enhanced and that real-time depot throughput monitoring are also necessary to regulate small facilities operating at high volumes.
In his words, “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.”
Ogungbangb, who also spoke on into-plane fueling rights at the jointly organised gateway forum colloquium, posited that licensing should require minimum storage, technical competence, and a history of reliable supply to ensure operational consistency.
Speaking further,Ogungbangbe said, “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.
“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,” he added.
Ogungbangbe called for a public pricing template detailing cost components such as crude, refining, logistics, forex rate, and margins would build trust between airlines and marketers.
He said that though claims of marketer collusion are anecdotal, oligopolistic behavior exists as a result of high barriers to entry and that expanding refining capacity and encouraging new market entrants can foster competition.
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