Airlines Lose 4.3bn

Nigerian Airlines Lose #4.3bn Annually to Restriction of Sunset Flight Operations—Uriesi 

ZAINAB JUNAID

The Chief Operating Officer, COO of Ibom Air, Mr George Uriesi, has said that Nigerian Airlines are currently deprived of a profit worth #4.3bn annually from being restricted to operate sunset flights. 

Mr Uriesi said this while delivering a paper titled “Maximizing Runway Utilization: A Nigerian Airline Perspective at the 26th annual conference of the League of Airport and Aviation Correspondence (LAAC) themed – ‘Sunset Airports: Economic and Safety Implications’ held on Thursday 28, 2022 at Sheraton, Ikeja,  Lagos.

He explained that the airlines were losing an average of N4 million per flight, N12 million in every flight, N360 million in 90 flights and N4.3 billion annually on every flight lost to lack of sunset airport operations in the country. 

This restriction according to him, had led to huge under-utilisation of aircraft fleets by the Nigerian Airlines as against the global industry standards. 

Uriesi said the setback is due partly because of too many impediments in the operating environment that limit airline productivity, which includes limited availability of runways across domestic network, multiple operational infrastructure deficiencies, poor organisation and many others. 

In view of these setbacks, he appealed to the government to prioritise airfield infrastructure and provide the necessary Instrument Landing System (ILS) and accompanying accessories for every airport, while also keeping the aerodromes open to meet the needs of airlines and other users. 

He also advised that government should make approved master plans a regulatory requirement for every airport and make non adherence to the master plans by any organization illegal. 

“There is need to establish a local aircraft lessor /financing vehicle that would allow for the domiciling of aircraft payments in local currency would make a huge difference to the air transport sector in Nigeria,” Uriesi maintained. 

FG Approves three Aircraft for Nigeria Air

 

FG Approves Lease of Three Aircraft to Nigeria Air 

ZAINAB JUNAID 

As part of the vision to ease air traveling in the country, the Federal Executive Council (FEC) has given Nigeria Air approval to lease aircraft to start operations. The three aircraft are made by Airbus and Boeing companies respectively and Nigeria Air will resume operations with domestic routes. 

 

The Minister of Aviation, Senator Hadi Sirika, announced this Wednesday, July 27, while briefing journalists after the FEC meeting presided over by President Muhammadu Buhari in Abuja.

Sirika noted that the flight operations will first begin locally, then progress to regional and international routes going forward.

Despite existing challenges faced by the industry, especially the rising cost of aviation fuel, also known as Jet A1, and foreign exchange rates issue, the Federal Government is not backing off from its plan to take off the airline soonest. 

 

The Nigerian national carrier logo had been launched abroad, few years ago, when stakeholders in the Nigerian aviation sector took to an air fair to explore options available to it for effective execution.

This will be including taxes at a central bank exchange rate of 472 in Euro with the delivery period of 11 months and is awarded to Messers Integrated Contract Services Limited for AIB.

 

Sirika said, "I presented two memoranda on the national carrier to allow Nigeria to lease aircraft to start operations. That has been approved by the council. And the second is the deployment of investigation tools by the Accident Investigation Bureau. That tool, will permit the accident investigation to be able to decode going ons in flights, and God forbid, should there be a need to investigate the accident or incident, the tool will help them to be able to do so. That procurement is in sum of 1,506,285.7 euros which is equivalent to N707,962,864.83.

"On how many aircraft, I have said in our business plan, in the outline business case which is approved which are presented right here in this hall, I said that we are starting with three aircraft, for the first instance, to do the runs and then we progress. As to the make and type, we will be having eventually a mix of the two, the Air Buses and the Boeings.

Because every airline that to grow big is either or, most of them are either Air Bus or they are Boeing, especially for the Intercontinental and international flights. And this will start as a domestic airline. And then it will of course grow to become regional and international also intercontinental. On the timeline, is a process we’re progressing. We will announce the commencement date soon.

 

"On how they’re going to pull this through with the hiccups the aviation is facing, well certainly it is a global phenomenon. If you, of course, I’m very sure you are abreast with the going on around the aviation industry.

"But suddenly it’s not here forever. Aviation is a very resilient activity. From time before, it always takes a dip and then comes back up. We saw it in 9/11, we saw it in the south, we saw it in the global meltdown. We saw it in Pearl Harbor, and so on and so forth. So aviation is very resilient. And I think we’ll get out of the problems we are facing. Of particular reference, yesterday all of you were present when we discussed with The Airline Operators of Nigeria (AON) the challenges we’re facing in terms of Jet A1 availability and of course pricing, which is 40% of the operations of the airline.

 

"We’re finding solutions to those problems and the cost of funds also is being attended to and so on and so forth. So yes, we will get there. And it’s doable and by God’s grace"

MAJAN President Salutes NAGAFF ACADEMY MGT

 MAJAN President Salutes NAGAFF Academy on 3rd matriculation ceremony

ZAINAB JUNAID 

The President of the Maritime Journalists Association of Nigeria (MAJAN), Comrade Ray Ugochukwu, has saluted NAGAFF Academy for its forth coming 3rd Matriculation ceremony slated for Friday, July 29, 2022.

Comrade Ugochukwu, made this commendation in a statement made available to MAJAN members on Wednesday. 

While appraising the Founder, National Association of Government Approved Freight Forwarders (NAGAFF), Dr Boniface Aniebonam and entire management of NAGAFF Academy for their hard work and resilience in moving Nigerian Maritime industry to greater heights, Comrade Ugochukwu, a seasoned Journalist, described Dr Aniebonam as an epitome of greatness and a rare gem to the maritime industry and Nigeria as a nation.

He also applauded the Registrar of NAGAFF Academy, Dr. Francis Idowu Omotosho for his intelligence and ingenuity in running the Academy efficiently, describing him as a world class scholar, whose academic prowess has attracted recognition within and outside the shores of Nigeria.

The Matriculation lecture scheduled for 12noon at NAGAFF headquarters, Apapa, Lagos, will have in attendance the Chief Executive Officer of  Nigerian Shippers' Council, Mr Emmanuel Jimefnis as Guest  Speaker and Dr Aniebonam, as Chief Host.

The theme of the lecture is; 'Freight Forwarding as a career - benefits to the nation’.

FG Closes FGC Abuja

 FG Orders Closure of FGC Kwali, Beef-Up Security In Unity Colleges

The Federal Ministry of Education has ordered the immediate closure of one of its colleges, the Federal Government College Kwali, located in Kwali Area Council of the Federal Capital Territory, Abuja.

Education Minister, Adamu Adamu who gave the directive in the early hours of this morning said the closure became necessary following security breach on Sheda and Lambata Villages, suburbs of Kwali Area Council which also threatened FGC Kwali.

According to the Minister, the timely intervention of security Agencies saved the situation.

Adamu Adamu also directed that arrangements should be made for final year students to conclude their NECO examinations.

The Minister has also directed Principals of Unity Colleges across the country to liaise with security Agencies within their jurisdictions in order to forestall any security breach in our schools. 

Gunmen Release three Hostages

Breaking: Gunmen Release three Abuja - Kaduna Train Hostages 

ZAINAB JUNAID 

Terrorists have released another three victims of the hostages held captive from the attacked Abuja-Kaduna train on March 28. 

The victims, who are two males and a female, got their freedom around 11 am on Monday, and this makes the total victims released so far add up to 22 from the 62 earlier captured, while the number still in their captivity remains at 40. 

This development followed a protest held on Monday morning by family members of the remaining kidnapped passengers at the headquarters of the Federal Ministry of Transportation, Abuja, calling on the government to help rescue their loved ones, who have spent 117 days in captivity. 

However, the terrorists over the weekend were seen in a viral video on social media, ill treating the hostages by flogging them with sticks and threatening to abduct President Muhammad Buhari as well as Kaduna State Governor, Malam Nasir El- Rufai. 

In the eleven-minute video released, the victims were seen appealing to the international community such as the United Nations, African Union and Saudi Arabia to come to their aid since according to them, the Nigerian government has failed to rescue them from the hands of the terrorists.

Meanwhile, the presidency had on Sunday reacted to their video threat hours after, challenging the insurgents of using propaganda to compel the government to yield to their demands.

In a statement, the Senior Special Assistant on Media and Publicity to President Muhammad Buhari Garba Shehu, said security forces are not helpless in controlling the high rate of insecurity confronting the country.

As Commander-in-Chief of the Armed Forces, Garba Shehu said President Muhammadu Buhari has been supporting security agencies by boosting their morale and providing the needed equipment.

He said, “The Presidency, in the meantime wishes to reassure the public that the President has done all, and even more than what is expected of him as Commander-in-Chief by way of morale, material and equipment support to the military and expects nothing short of good results in the immediate.”

Toll gate on Lagos Ibadan Road

 FG will return Toll Gates to Lagos-Ibadan Express way- Fashola

ZAINAB JUNAID

The Minister of Works and Housing, Babatunde Fashola, has said the Federal Government will return toll gates to the Lagos-Ibadan Expressway after the highway is rehabilitated.

 

Fashola disclosed this on Sunday saying three toll gates should be expected on the highway after all works on the expressway have been completed by December 2022.

Fashola said a toll gate is expected in the Lagos, Ogun (Ogere) and Ibadan axis of the expressway when completed.

 

The minister further revealed that government planned to finish the Second Niger Bridge project in the South-Eastern part of the country before Christmas.

 

According to him, Amidst various challenges facing the Second Niger project, the current administration plans to open the bridge before Christmas. We are working towards this period because there is always mass movement of people. 

“Hopefully, by Christmas, it will be opened. That was the last meeting I had with the contractor about three weeks ago.”

NSC Remains Port Regulator

Nigerian Shippers' Council Remains Port Economic Regulator - Transport Minister

ZAINAB JUNAID

The Minister of Transportation, Alhaji Mu’azu Jaji Sambo has said that the Nigerian Shippers’ Council (NSC) remain the economic regulator of the Nigerian port industry.

Alhaji Sambo who was represented by the Permanent Secretary of the Federal Ministry of Transportation, Mrs Magdalene Ajayi, said this at a sensitization forum jointly organized recently by the Ministry and Nigerian Shippers Council. The theme of the event was "Promoting Competitiveness in the Maritime Industry: The Mandate of Nigerian Shippers Council." 

He reiterated that the position of the Federal Government remains that the NSC should be the economic regulator of the port industry and thus enjoined industry stakeholders to cooperate with the council and get acquainted to their supervisory role. 

Recalling how the council was appointed interim port economic regulator in February 14, 2014, with the appointment made substantial in 2015 to effectively regulate tariffs, rates, and other related services as well as monitor all matters relating to the cost, standard and quality of services rendered by the regulated service providers, and also to bring sanity to the port, the Minister maintained that Nigerian Shippers Council remains the economic regulator while the Nigerian Ports Authority (NPA) is the technical and supervisory regulator.

The minister declared that the two agencies are working within the Nigerian port system for the betterment of the industry and advised those in court to embrace the regulatory roles of the two government agencies. 

"This position should be retained pending the time the National Transport Commission would come into being to regulate the transport industry," he said. 

Meanwhile in his analysis, Prof. Bongo Adi, a Professor of Development Economics and Data Analytics, Lagos Business School, who was the guest speaker at the event, opines that though NSC was appointed the port economic regulator in 2014 to promote competitiveness and compliance in the maritime sector, the port industry has remained naturally monopolistic as it was since entrance to the industry is not open. The council needs to enhance competitiveness that will buoy the nation’s export taking cognisance of the fact that the Nigeria's monetary policy has become sterile. 

His words, "The Council was appointed the regulator almost a decade after ports were concessioned. This was a challenge as it became a regulator that took no part in the concession exercise. NSC’s late appointment make them an agency leading from behind to enforce competitiveness. We know the port industry is naturally monopolistic because entrance into the industry is not open, the fact that the most important sector of the economy is the foreign sector where the country interacts with the rest of the world through imports and export, should prompt NSC to focus more on promoting competitiveness that will buoy the nation’s export, knowing fully that Nigeria’s monetary policy has become sterile."

Bongo declared that the only thing that can save Nigeria is export which must come in form of diversification, but warned against relying on agricultural produce which he labeled as inferior goods.

"Agriculture should not be the priority except for the purpose of export." 

However, in his welcome address, the Executive Secretary of the Shippers Council, Rt. Hon. Emmanuel Jime buttress the fact that the ports need to be made competitive to guard against monopoly, in which the council was appointed port regulator for. 

He thus expressed appreciation to the Federal Ministry of Transportation and other industry agencies for their support in  the successful discharge of the council duties as economic regulator.