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Nigeria’s Airports Record 2.3% Increase in Domestic Passengers in 2yrs – NBS

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  • Nigeria’s Airports Record 2.3% Increase in Domestic Passengers in 2yrs 

The National Bureau of Statistics (NBS) has disclosed that Nigeria’s airports recorded an increase of 2.3 per cent in domestic passengers in 2015 and 2016.

The NBS made this figure known in its Fourth Quarter 2016 and Full Year 2016 Air Transportation Data released in Abuja.

The report, however, stated that the first and second halves of the year differed substantially.

It stated that it differed substantially whereas year-on-year growth in domestic passenger, numbers of 9.7 per cent and 10.3 per cent were recorded in the first two quarters respectively.

“Declines of 1.3 per cent and 8.2 per cent were recorded in the third and fourth quarters respectively.

“The declines were due to their size, most of this decline was accounted for by Abuja, Lagos and Port Harcourt, and in both quarters, Abuja accounted for the largest fall.

“Murtala Muhammed Airport (MMA) in Lagos remained the busiest domestic airport in the third and final quarters of 2016.

“This airport accounted for 891,770 passengers in the third quarter and 909,851 passengers in the final quarter, which represented 33.3 per cent and 34.5 per cent respectively.’’

According to the report, the share of domestic passengers accounted for by MMA remained broadly stable throughout 2016.

“It remained stable in the year with the highest share recorded in the first quarter of 34.6 per cent, and the lowest recorded in the third quarter.

“As with the overall number of domestic passengers, the number to travel though MMA declined relative to the corresponding values in 2015.

“In the third quarter, MMA airport recorded a year-on-year decline of 7.3 per cent, compared to an overall decline in domestic passenger numbers of 1.3 per cent (when comparing same set of airports.

“In the fourth, this fell slightly to a decline of 7.5 per cent, although this was a smaller contraction than in the overall fall of 8.2per cent.’’

Similarly, it stated that the share of passengers accounted for by Abuja Airport, the second busiest airport in 2016, remained between 30 per cent and 31 per cent in each quarter of 2016.

According to the report, the third and fourth quarters, there were 822,702 and 810,410 domestic passengers to travel through Abuja respectively.

“In each quarter this was equivalent to 30.7 per cent of the total number, which is higher than the shares in the first and second quarter of 30.4 per cent and 30.2 per cent.

“Abuja was the airport to record the largest year on year reduction in domestic passengers in absolute terms in each of the third and fourth quarters.’’

In the third quarter of 2016, the report stated noted that there were 81,270 less domestic passengers to travel through than in the same quarter of 2015, a reduction of 9.0 per cent.

It stated that in the fourth quarter, the year on year drop fell to 110,005, equivalent to a 12.0 per cent fall.

“The third busiest domestic airport in 2016 was Port Harcourt, although the number of passengers fell throughout the year.

Meanwhile, under the domestic aircraft movement, the report stated the shares of domestic flights accounted for by each airport were similar to the shares of passengers accounted for by each airport, as would be expected.

However, it stated that aircraft departing from and flying to larger airports carried more people. Therefore, the share of aircraft accounted for airports such as Lagos and Abuja was smaller than their share of passengers.

“During 2016, Lagos airport accounted for 34.2 per cent of domestic passengers, but only 27.5 per cent of domestic aircraft.

“This is due to the average number of passengers on aircraft to and from Lagos being 61.1 per cent, more than 10 passengers higher than average.

“Similarly, Abuja accounted for 30.5 per cent of passengers, accounting for 24.4 per cent of aircraft.’’

In the third quarter of 2016, the report stated that Lagos recorded a fall in the number of aircraft.

“It recorded a fall in aircraft relative to the second quarter, of 13.8 per cent, to reach 14,097, before rebounding in the final quarter, growing by 9.9 per cent to reach 15,491.

Consequently, the report stated that its share fell to 26.5 per cent in the third quarter from 27.8 per cent in the second, before rebounding to 28.4 per cent in the final quarter.

“Abuja also recorded a decline in domestic aircraft movement in the third quarter; 12,593 aircraft moved through Abuja’s domestic airport compared to 13,682 in the second quarter, a drop of 9.2 per cent.

“However, growth in the amount of domestic aircraft movement in the final quarter was smaller than for Lagos, at 1.4 per cent, resulting in 12,764 domestic aircraft to leave and arrive in Abuja in the final quarter,’’ the report stated.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

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Oil Dips Below $62 in New York Though Banks Say Rally Can Extend

Oil retreated from an earlier rally with investment banks and traders predicting the market can go significantly higher in the months to come.

Futures in New York pared much of an earlier increase to $63 a barrel as the dollar climbed and equities slipped. Bank of America said prices could reach $70 at some point this year, while Socar Trading SA sees global benchmark Brent hitting $80 a barrel before the end of the year as the glut of inventories built up during the Covid-19 pandemic is drained by the summer.

The loss of oil output after the big freeze in the U.S. should help the market firm as much of the world emerges from lockdowns, according to Trafigura Group. Inventory data due later Tuesday from the American Petroleum Institute and more from the Energy Department on Wednesday will shed more light on how the Texas freeze disrupted U.S. oil supply last week.

Oil has surged this year after Saudi Arabia pledged to unilaterally cut 1 million barrels a day in February and March, with Goldman Sachs Group Inc. predicting the rally will accelerate as demand outpaces global supply. Russia and Riyadh, however, will next week once again head into an OPEC+ meeting with differing opinions about adding more crude to the market.

“The freeze in the U.S. has proved supportive as production was cut,” said Hans van Cleef, senior energy economist at ABN Amro. “We still expect that Russia will push for a significant rise in production,” which could soon weigh on prices, he said.

PRICES

  • West Texas Intermediate for April fell 27 cents to $61.43 a barrel at 9:20 a.m. New York time
  • Brent for April settlement fell 8 cents to $65.16

Brent’s prompt timespread firmed in a bullish backwardation structure to the widest in more than a year. The gap rose above $1 a barrel on Tuesday before easing to 87 cents. That compares with 25 cents at the start of the month.

JPMorgan Chase & Co. and oil trader Vitol Group shot down talk of a new oil supercycle, though they said a lack of supply response will keep prices for crude prices firm in the short term.

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Crude Oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

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Crude oil

Oil Prices Rise With Storm-hit U.S. Output Set for Slow Return

Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions served as a reminder of the tight supply situation, just as demand recovers from the depths of the COVID-19 pandemic.

Brent crude was up $1.38, or 2.2%, at $64.29 per barrel. West Texas Intermediate gained $1.38, or 2.33%, to trade at $60.62 per barrel.

Abnormally cold weather in Texas and the Plains states forced the shutdown of up to 4 million barrels per day (bpd) of crude production along with 21 billion cubic feet of natural gas output, analysts estimated.

Shale oil producers in the region could take at least two weeks to restart the more than 2 million barrels per day (bpd) of crude output affected, sources said, as frozen pipes and power supply interruptions slow their recovery.

“With three-quarters of fracking crews standing down, the likelihood of a fast resumption is low,” ANZ Research said in a note.

For the first time since November, U.S. drilling companies cut the number of oil rigs operating due to the cold and snow enveloping Texas, New Mexico and other energy-producing centres.

OPEC+ oil producers are set to meet on March 4, with sources saying the group is likely to ease curbs on supply after April given a recovery in prices, although any increase in output will likely be modest given lingering uncertainty over the pandemic.

“Saudi Arabia is eager to pursue yet higher prices in order to cover its social break-even expenses at around $80 a barrel while Russia is strongly focused on unwinding current cuts and getting back to normal production,” said SEB chief commodity analyst Bjarne Schieldrop.

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Crude Oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

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oil

Crude Oil Rose Above $65 Per Barrel as US Production Drop Due to Texas Weather

Oil prices rose to $65.47 per barrel on Thursday as crude oil production dropped in the US due to frigid Texas weather.

The unusual weather has left millions in the dark and forced oil producers to shut down production. According to reports, at least the winter blast has claimed 24 lives.

Brent crude oil gained $2 to $65.47 on Thursday morning before pulling back to $64.62 per barrel around 11:00 am Nigerian time.

U.S. West Texas Intermediate (WTI) crude rose 2.3 percent to settle at $61.74 per barrel.

“This has just sent us to the next level,” said Bob Yawger, director of energy futures at Mizuho in New York. “Crude oil WTI will probably max out somewhere pretty close to $65.65, refinery utilization rate will probably slide to somewhere around 76%,” Yawger said.

However, the report that Saudi Arabia plans to increase production in the coming months weighed on crude oil as it can be seen in the chart below.

Prince Abdulaziz bin Salman, Saudi Arabian Energy Minister, warned that it was too early to declare victory against the COVID-19 virus and that oil producers must remain “extremely cautious”.

“We are in a much better place than we were a year ago, but I must warn, once again, against complacency. The uncertainty is very high, and we have to be extremely cautious,” he told an energy industry event.

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