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Delayed payment to foreign airlines contravenes BASA provisions — Stakeholders

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For the first time in the Nigerian aviation industry’s history, some foreign airlines had to shut down operations in the country while others were warming up to do the same before the Central Bank of Nigeria (CBN) intervened, releasing about $265 million.

If the apex bank had not intervened, the industry would not have been saved from the national embarrassment and several Nigerians, especially students would have spent fortunes on flight tickets.

Despite the CBN’s intervention, several aviation stakeholders and experts have said they expect more from President Muhammadu Buhari. The experts, who spoke in separate interviews, expect the government to adopt better communication strategies in dealing with both foreign and local airlines, make forex available to domestic airlines and win back its credibility as a credit-worthy nation.

International airlines have as much as $464 million trapped in Nigeria. The International Air Transportation Association (IATA) had revealed that the revenue belonging to foreign airlines in Nigeria that is being withheld from repatriation as of July 2022 is the sum of $464 million.

This development caused Emirates Airlines to announce the suspension of flights to Nigeria from September 1, with several others including British Airways reported to be warming up for the same action.

The CBN had released the sum of $265 million with a portion of it going to settle trapped funds belonging to foreign airlines.

Out of the fund, $230 million of the intervention fund, according to reports, was to tackle FX intervention while another sum of $35 million was released through the Retail SMIS auction to clear outstanding ticket sales.

The CBN Governor, Godwin Emefiele and his team are said to be concerned about the trapped funds and the implications for the industry and the economy at large.

Meanwhile the managing partner, TSD Travels, Mr Akin Esho speaking with journalists, described the situation as a national embarrassment, which is capable of tarnishing the image of the industry and the nation as a whole.

According to him, the government needs to re-strategise the approaches to take in dealing with foreign airlines if it is ready to do business. Without mincing words, he argued that the government was negligent in performing its responsibilities, especially in the area of providing adequate information to foreign airlines on what it is doing to release the said ‘trapped funds.’

He said, “The federal government should have opened a discussion earlier with the airlines to give them assurances on the payment. If the government had interfaced with the airlines, they would not have reduced their flights to Nigeria or sold their tickets at exorbitant rates to Nigerian travellers.

“What CBN has done is a welcome development because in everything we look at things from the positive development. But they should have saved the country the embarrassment and high cost of flight tickets levelled on Nigerians, especially those students who were travelling back to school overseas. I hope we have learnt our lessons from the unfortunate incidents.”

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Aviation

Association urges FG to settle defunct Nigeria Airways pilots

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The Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) has re-echoed the call on the federal government to settle the outstanding severance benefits of erstwhile workers of the defunct Nigeria Airways.

The First Vice President of the association, Mr Emmanuel Jaja, said this in commemoration of the 2024 International Workers’ Day on Wednesday in Lagos.

He said that the workers put in the greater part of their life in the service of the airline, which was liquidated during the regime of former president OlusegunObasanjo.

Jaja regretted that over 100 former workers of the former national carrier had died since the last verification and part payment exercise carried out in 2019.

“Again, we wish to lament the death of five former Staff of the Nigerian Airways Staff who lost their lives in the last one week, including the pilot whose plane was hijacked in 1993, Captain MakpoOmodiagbe, without them receiving their full benefits from the federal government after the liquidation of the airline.

“The government must endeavour to pay the remaining living staff so that they can enjoy the labour of their lives before they are called home by their creator,” he said.

Jaja also decried the recent increase in electricity tariff in the country amidst the epileptic power supply, calling for a return to the status quo.

The ATSSSAN leader lamented the hardship in the country following the fuel supply challenges, stating that the labour body was studying the situation.

He also spoke on the issue of companies in the aviation industry that had refused to allow their staff to join trade unions.

Jaja said labour would soon make the industry uncomfortable for such companies and airlines.

“Government must also urgently address the issue of minimum wage for workers in order not to incur the wrath of the Nigerian workers,” he said.

Jaja said that ATSSSAN, in collaboration with the National Union of Air Transport Employees and other unions, would henceforth, not tolerate airlines and companies refusing to allow their workforce to be unionised.

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Aviation

Aviation sector to benefit from RIDF

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Aviation is set to be part of key economic drivers that will benefit from President Bola Tinubu’s proposed Renewed Hope Infrastructure Development Fund (RIDF).

In a statement by Ajuri Ngelale, the fund targets strategic sectors like agriculture, transportation, ports,  energy, healthcare, and education along with aviation.

The initiative plans to inject funds into vital national projects to foster growth, bolster local value addition, generate jobs, and spur innovation.

Efficient use of low-interest loans and financing options will secure advantageous arrangements for project financing and operation.

The focus on aviation enhancement involves modernising major airports nationwide with targeted investments and infrastructure upgrades.

The statement reads, “On aviation enhancement, the focus is on the revitalization and modernization of major airports nationwide. Through targeted investments and infrastructure upgrades, major airports will undergo comprehensive refurbishment, including improvement in terminal facilities, runway expansions, and the implementation of cutting-edge technologies to enhance safety and operational efficiency.”

For agricultural infrastructure, the focus includes developing robust networks like storage facilities and irrigation systems.

In port revitalisation, the goal is to modernise facilities and attract investments to enhance Nigeria’s regional trade hub status.

“By modernizing port facilities and implementing advanced monitoring systems, the goal is to optimize efficiency, attract investments, and bolster Nigeria’s position as a regional trade hub,” the statement read.

Key road projects like Lagos-Calabar Coastal Road aim to enhance connectivity and stimulate economic growth.

Rail projects like Lagos-Kano and Eastern lines will modernise transportation networks for speed and reliability.

President Tinubu’s approval of the RHIDF absorbs the PIDF, expediting project delivery for Nigerians’ benefit.

Projects funded under the RHIDF will have a national spread, reflecting the commitment to equitable development.

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Aviation

ICAO Aviation security audit team debriefs Nigeria, indicates strong outing

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The Team Lead of ICAO Security Audit Programme, Callum Vine, announced Nigeria’s strong performance during a debrief after its Audit.

Nigeria recently concluded the International Civil Aviation Organization (ICAO) Security Audit Programme the continuous Monitoring Approach (USAP-CMA) according to a statement emanating from Director, Public Affairs and Consumer Protection, FAAN, Obiageli Orah.

The USAP-CMA aims to improve aviation security compliance by analysing Member States’ performance and implementation of security standards. It focuses on Annex 17: Security Standards and Annex 9: facilitation compliance, along with associated procedures and security practices.

The event held at NCAA Headquarters saw Vine praise Nigeria’s robust policies and agencies, acknowledging their speed in addressing identified deficiencies without complaints.

He mentioned that the full audit report would be available within 60 days, followed by a 30-day period for comments.

FAAN’s Managing Director, Mrs. Olubunmi Kuku, affirmed using the audit results as a roadmap for continuous improvement.

She urged stakeholders to collaborate closely, share best practices, and uphold the highest security standards in the industry.

The debrief was attended by Dr. Emmanuel Meribole, representing the Minister, and Captain Chris Najomo, Acting Director General of NCAA.

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