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Hope rises as Minister assures release of foreign airlines trapped $464m funds

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There seems to be hope for foreign airlines that their over $464 million stuck funds would be released as the Minister of Information, Alhaji Lai Mohammed said the government was working on resolving the matter.

Speaking at a tour of Lagos airport, the Minister said relevant authorities of the government have escalated action on the issue assuring that very soon the matter will be history

This is heart-warming for the carriers that had mounted pressure on the government to accelerate the release of their funds that have caused them untold hardship.

Some of the affected airlines are considering measures such as suspending flight services to cutting down of frequencies to minimize their losses.

United Arab Emirates carrier- Emirates Airlines issued a notice of flight suspension effective September 1, 2022.

Only last week, the International Air Transport Association (IATA), slammed the Nigerian Government for holding over $464million as proceeds of ticket sales by airlines operating in the country.

Mohammed said, “The Federal Government is aware of the issue and action is being taken. I can assure you that relevant authorities are working on it. Very soon the matter will be resolved.”

The Minister, while describing the new terminal as one of the poster projects of the government in its critical infrastructure drive, said no administration has shown enough commitment to change the narrative about the aviation sector.

He clarified that a $500 million loan secured from the Chinese Import-Export Bank for five airport terminals in Lagos, Enugu, Port Harcourt, Abuja, and Kano would be repaid as programmed.

He lamented the tax- to- gross domestic product is affecting revenue for the government, urging Nigerians to demonstrate patriotism by contributing to the tax net.

Mohammed said the new terminal will not displace the over 40-year terminal but will complement it for passengers transiting.

Besides changing the travel experience of many Nigerians, the new terminal Mohammed said will provide job opportunities directly and indirectly for over 10,000 people.

He said, “This new terminal at the Lagos International Airport is a world-class edifice put together with the collaboration of Nigeria and the People’s Republic of China. With the capacity to process 14 million passengers annually, it is an exciting travel experience with facilities in any airport, anywhere in the world. There is a whole new experience in terms of aesthetics, comfort, and friendly customer service.

“This edifice and the others are testaments to the commitment of the Buhari administration’s unprecedented infrastructure development covering roads, bridges, rail, water dams, and sea ports.

“No administration in the history of Nigeria has done this much, especially at a time of scarce resources.”

He said the Federal Government has concluded plans to relocate five foreign carriers into the new terminal from September 1, 2022.

He said out of the eight carriers that indicated interest, five have been cleared, putting into consideration many parameters.

Meanwhile, the Director General of the Nigerian Civil Aviation Authority (NCAA), Captain Musa Nuhu has clarified that no foreign carrier operating in the country is approved to sell its tickets in United States dollars.

Nuhu said the regulator will not grant such approval because it is against the regulations to buy tickets in the currency of another country.

While dismissing the information making the round, he said the NCAA has not increased operational levies for foreign carriers flying into Nigeria.

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 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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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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