General News
Sirika Unfolds Vision for Nigerian Aviation
Senator Hadi Sirika, minister of State, Aviation has unfolded the vision and strategies of the President Mohammad Buhari administration for achieving a quantum leap forward for the Nigerian Aviation industry. First, he made it clear that Aviation” is pivotal to the growth of key economic sectors, certainly not limited to travel and tourism. Agriculture production and distribution, rural development, trade and commerce, manufacturing, oil and other non-oil sectors.”
In what could be termed a comprehensive mission, Sirika had quite some surprises and a handful of seemingly simple solutions to longstanding problems and issues. One surprise: Government plans to concession four major airports to the private sector.
The Minister believes that by bringing in the private sector, the country can achieve better infrastructural development and improve the efficiency of service delivery at these airports. The airports in question are the international airports in Lagos, Abuja, Port Harcourt and Kano.
And it’s also the month of May, 2016, which makes it one year since this administration came on board, it was an opportunity for stock taking.
Sirika said that some of the challenges facing the country’s airports were that of obsolete equipment and dilapidated infrastructure; obsolete equipment and inadequate capacity. These challenges, according to him, are expected to be addressed by the newly initiated concession programme, the much awaited completion of five new, world class, ultra-modern airport terminals in Lagos, Abuja, Kano, Enugu and Port Harcourt later this year.
On the focus, the Minister said that “ the present administration is focussing on issues that will rapidly develop the aviation industry within the shortest possible time.” These issues, include aviation safety and security, infrastructural development, the establishment of a national carrier, lack of a world class aircraft maintenance, repair and overhaul,(MRO) facility in the country.
Others are: How to quickly develop our air cargo capacity in order to participate actively in multi-billion dollars global agro-allied export trade.
The restructuring of the country’s aviation agencies and the setting up of an aerospace University in the country.
In his usually forthright manner, Sirika states the administration’s position on all of these tough issues, perhaps, leaving no one in doubt about the policy direction of the Buhari administration as regards the aviation industry.
On safety and security at our airports, the minister was of the view that government’s response should include the development of a new security strategy framework in partnership with international security organisations, the determined implementation of a certification programme for all our airports and a comprehensive security threat and vulnerability assessment of our airports. The Minister of state recently inaugurated a technical committee with the mandate to look into security at the country’s airports.
On the vexed issue of a national carrier, Sirika was emphatic that the administration will establish a national carrier because of the benefits that the country would derive from it, especially from the various Bilateral and Multilateral air services agreements signed by the government with other countries, worldwide.
It would also help stem current capital flight due to foreign airlines exploiting the current absence of a Nigerian national carrier.
He said however, that the carrier will be floated on the stock exchange and listed whereby Nigerians can buy its shares and own it. Furthermore, to realise this laudable goal, he said that government would engage the services of a transaction adviser “to develop an appropriate business model and framework to establish a national carrier using a public/private partnership concept.” When in place, the national carrier would be expected to form alliances and joint ventures with other carriers, in order to increase its reach and routes, Sirika said.
There is also the issue of national prestige and national pride when talking about a national carrier, as some smaller African countries such as Ethiopia proudly fly their countries colours on their national carriers, many of which have become successful ventures, the Minister said.
On the appalling lack of a world class aircraft maintenance, repair and overhaul, (MRO)l facility in West and Central Africa, the Aviation helmsman challenges Nigerian investors to key into the bountiful opportunity.
He said that the current administration was determined to create an enabling environment that would provide an impetus to willing investors.
He hoped that such investors could go beyond only MRO but actually initiate the local manufacturing of light aircraft spare parts in the country, which would help save foreign exchange and create more jobs for Nigerians in-country.
The issue of air cargo facilities ties with the country’s hopes of generating more foreign exchange from agricultural produce and other non-oil exports.
As the Minister noted the country is current losing a lot in potential income from export of perishable agricultural produce including fresh flowers and vegetable as a result of the absence of adequate air cargo facilities.
Apart from generating forex, it has far reaching socio- economic impact as it will improve farmers’ income significantly and help stem rural to urban migration. Government is therefore working hard to meet this challenge, with several of the required facilities under construction in strategic areas round the country, Sirika noted.
The country’s target is to get 40 per cent of the market for agro-allied and perishable agric produce export coming from Africa to global markets, he said.
A thoroughbred and experienced air pilot himself, the minister noted, howbeit sadly, that many well trained professional aviators, especially pilots are unemployed. Whereas, on the other hand, their foreign counterparts are having a field day in the country working for foreign airlines operating in the country.
Not mincing words, the minister said that government would henceforth vigorously enforce expatriate quotas for staffing of foreign airlines operating in the country, so that foreigners do not continue to take jobs meant for Nigerians. And review the policy on validation of foreign licenses (no aviator left behind policy.)
The Minister said that it is a policy of the All Progressives Congress, APC administration to set up an Aviation Development Bank, which he said, will offer Nigerian aviation entrepreneurs long term, low interest loans in single digits to help finance their airline businesses. This, accordingly, will boost the growth of the industry and help create stability.
Other salient industry issues which the Minister addressed are that of the supply and pricing of Aviation Jet A-one fuel, sourcing of foreign exchange by airlines for their operations and aircraft leasing. On Jet A-1, Sirika said government has made arrangements to start local production of the fuel which is currently 100 per cent imported.
Discussions are also in top gear with the Central Bank of Nigeria, CBN to ease forex supply shortfall to airlines, especially foreign airlines because they operate and pay for several services in foreign exchange whereas, tickets are sold in naira locally, putting airlines at a disadvantage.
Sirika said that the administration will continue with the current policy of granting duty waivers on imported aircraft and spare parts, so as to support the industry. Further, government is well aware of financing difficulties faced by Nigerian airlines in the leasing of aircraft. They have limited access to capital even then at high interest rates of about 27 per cent currently. They are also faced with inadequate numbers of aircraft, while they have high debt profiles. The Minister said that the government intends to set up an aircraft leasing company to assist these Nigerian airlines, to have better access to leased aircraft for their operations.
Then, it was time to highlight some achievements of the Ministry of Transportation in the area of aviation, since last May(2015).
The Minister noted with pride that Nigeria passed the recent ICAO security audit of the country’s airports with flying colours at a score of 96 per cent.
The aviation industry similarly passed the ICAO Universal Safety Oversight Audit of the country, reflecting the enormous hardwork and expertise of Nigerian aviation authorities.
The Buhari administration has been able to provide bomb containment vessels at the Malam Aminu Kano International Airport Kano and at the Port Harcourt International Airport. The administration has also installed solar-powered field lighting systems at 10 airports round the country including Port Harcourt , Sokoto, Akure and Enugu. In addition, Air traffic control tower operations at the Malam Aminu Kano Airport have been automated, allowing for more efficient services.
The Minister of State rounded off by promising that the Nigerian aviation industry would soon have a master plan in place, which he said will be integrated into the National Integrated Infrastructure Masterplan, NIIMP. He said that the development of Nigerian aviation is “a joint responsibility of the public and private sectors.”
Above all, Sirika is confident that the Nigerian aviation industry” can become profitable, self-sustaining and beneficial to all stakeholders,” with our concerted efforts and cooperation.
• Yakubu Dati, spokesman of the Federal Airports Authority of Nigeria, wrote from Lagos
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International Trade Union Confederation, (ITUC-Africa), representing trade unions from countries in Africa, has called on Nigeria and other African governments to ensure that industrialisation translates into improved living standards for workers and ordinary citizens.
According to ITUC-Africa, economic growth must lift Nigerians and other Africans out of poverty rather than deepen inequality, frowning at Nigeria’s government plans to remove subsidy on electricity.
Delivering his opening remarks at the New Energy for Africa 11 Convening: African Workers’ Contributions to Energy Sovereignty, Green Industrialization, and a Common African for COP31, Akhator Joel Odigie, general secretary of ITUC-Africa, said, industrialisation remains central to Nigeria and Africa’s liberation and development agenda but warned that it would be meaningless if it failed to improve the welfare of the continent’s people.
He faulted the plans by the Nigerian government to remove so-called subsidy on electricity in 2027, arguing that it is aimed at satisfying the Bretton Woods institutions such as the International Monetary Fund, IMF, and the World Bank.
According to him, such removal would worsen the poverty rate in Nigeria and regress any marginal progress towards industrialisation. Subsidy removal will make electricity inaccessible to workers and the majority of the citizens.
He said, “As we speak now, Nigeria is talking of subsidy removal on electricity. The plan is not to satisfy or help Nigerians, but IMF, World Bank and other donor countries. The talk that subsidy is bad economics is a lie. All developed economies depended on public sector-driven electricity and not private sector.
“For us as Africans, industrialisation is central to our liberation and development. It is part of our aspiration to define our own identity and achieve shared prosperity through an industrialised Africa. Unfortunately, that vision has yet to be realised.
“We have also come to understand that lamenting our circumstances is not enough. Identifying the barriers to Africa’s development or pointing fingers at those who may be responsible does not move us forward. The more important question is: What next? What solutions can we pursue together?
“It is from that perspective that we confront the reality that more than 600 million Africans still lack access to electricity, while privatisation continues to deny many people affordable access to energy. This compels us to ask: What can we do differently?”
According to him, organised labour believes industrialisation can be achieved without worsening the climate crisis if governments, workers and development partners commit to energy justice.
Odigie noted that “When we speak about sustainable industrialisation, we are asking how Africa can industrialise without increasing environmental degradation or worsening the climate challenges our people already experience every day.
“We know this is possible. But it will require negotiation, compromise and genuine partnerships. It demands serious discussions on technology transfer, skills development and financing.”
He stressed that developing technical skills and mobilising investment for energy infrastructure are essential if Africa is to industrialise sustainably, saying “These are not impossible skills to acquire. With the right investment and commitment, Africa can build them. Equally important is access to finance and the resources needed to develop the infrastructure that will support sustainable industrialisation.
“An industrialised Africa has little meaning if it does not improve the lives of our people. Our vision is an Africa where prosperity is shared.
“We must reverse the growing phenomenon of the working poor. We must end the situation where women, children and older persons bear the greatest burden whenever governments attempt to balance national budgets.
“What does prosperity mean if ordinary people cannot enjoy a decent quality of life? A worker who returns home after a long day’s work should be able to switch on a fan during hot weather, watch television, listen to the news and spend meaningful time with family because electricity is available, reliable and affordable.
“If our people cannot enjoy these basic necessities, then what kind of prosperity are we really talking about?
“Energy justice means energy that is accessible, affordable and capable of improving people’s lives.”
Odigie also renewed ITUC-Africa’s campaign for stronger public participation in Africa’s energy sector, citing Finland as an example of how governments can ensure affordable electricity while working with private investors.
“Recently, we visited Finland, where we observed a successful model that combines public and private participation, with strong public leadership. Energy there is affordable. In fact, electricity costs less in Finland than it does here in Nairobi.
“Our hosts explained that this is possible because the state retains an important role in the energy sector, including the ability to influence pricing to ensure affordability for everyone.”
Ahead of the COP31 climate negotiations, he called for closer collaboration between organised labour and the African Group of Negotiators (AGN), saying trade unions are partners in governance rather than adversaries.
“Trade unions are not antagonistic to governments, even though we are sometimes misunderstood.
“Our responsibility is to strengthen accountability and help governments perform better because, from time to time, leaders can become too comfortable.”
Using a metaphor that drew applause from participants, Odigie likened the role of trade unions to keeping leaders “close to the fire.”
“Our responsibility is to keep the feet of our leaders close to the fire so that their heads do not become too cold. We want them to continue thinking clearly, making sound decisions and remaining connected to the realities faced by ordinary people.
“That is why we are not in opposition. We are not enemies.”
He said organised labour’s partnership with the AGN is intended to ensure African governments enter international climate negotiations with the full backing of workers across the continent.
Speaking, Dr Nana Amoah, chair of the African Group of Negotiators, AGN, said Africa’s energy transition presents both an urgent challenge and a historic opportunity, lamenting that “More than 600 million Africans still lack access to electricity, even though our continent possesses exceptional solar, wind, hydro and geothermal resources. Yet Africa continues to receive only a very small share of global clean-energy investment.”
Represented by Dr George Manful, AGN Senior Advisor, Amoah, said: “This imbalance must be corrected if the transition is to support Africa’s development rather than reproduce existing patterns of dependence, extraction and inequality.
“For the African Group of Negotiators, a just transition cannot be measured solely by installed megawatts, emissions reductions or new electricity connections. It must also be measured by the quality of jobs created, affordability of energy, protection of workers, participation of women and young people, development of local industries, and the capacity of African countries to retain value from their natural resources.
“Initiatives such as Mission 300 must therefore go beyond expanding access. They must strengthen public institutions, mobilise affordable and debt-sensitive finance, support local manufacturing and skills development, and guarantee that no worker, community or vulnerable group is left behind.
“Africa’s critical minerals must similarly become a foundation for green industrialisation—not another chapter of raw-material extraction. Our policies must promote local processing, technology transfer, decent work, environmental integrity and equitable participation in global value chains.”
Allen Onyema, vice chairman, Airline Operators of Nigeria (AON) and chairman, Air Peace, has warned that several domestic airlines could cease operations within the next 30 days unless the federal government urgently intervenes in the challenges confronting the aviation industry.
Allen Onyema
Onyema, gave the warning on Wednesday at the launch of the book, Pathways, Pilgrimage & Destiny: The Biography of Alhaji Muneer Bankole, held in Lagos.
He described the aviation industry as capital-intensive but less rewarding, warning that airlines are facing serious threats to their survival.
“Going into aviation is not a piece of cake. It is an industry that is not very rewarding. It is capital-intensive, yet less rewarding. Today, we are facing a phase that has existential threats. Except something drastic is done very quickly within the next 30 days, a lot of airlines might go extinct,” Onyema said.
The Air Peace chairman also cautioned aviation unions against their planned picketing of airlines over the non-remittance of the five per cent Ticket Sales Charge.
He warned that if any airline is picketed, other domestic carriers would suspend operations in solidarity.
“If they picket any airline, others will go because there’s no need for that. There is nowhere in the world that government agencies use unions to talk about issues of debt,” he said.
Onyema lamented the harsh operating environment for Nigerian airlines, noting that more than 50 airlines have shut down over the years.
“Everybody pities Nigerian airlines, yet nobody wants to do anything about their situation. Over 50 airlines have come and gone. The owners of these airlines succeeded in other businesses, yet they failed in airline business,” he said.
He stressed that airlines were not opposed to helping the government generate revenue but called for a more sustainable approach.
“The airlines are not against helping government generate revenue. But no airline in the world is taxed directly for revenue. The airlines indirectly provide revenue for government,” Onyema added.
General News
QNET Denies Links to Ignite, Backs Nigeria Immigration Service Crackdown on Alleged Fraud Syndicate
QNET has denied any association with Ignite following the arrest of 12 individuals by the Nigeria Immigration Service (NIS) over alleged fraudulent recruitment, irregular migration and other unlawful activities.
QNET
In a statement issued on Tuesday, the direct-selling company described reports referring to the suspects as belonging to a “QNET/IGNITE network” as inaccurate, stressing that Ignite is an entirely separate entity with no relationship to QNET.
The company stated that Ignite is neither part of QNET nor authorised to conduct any business or activities on its behalf.
QNET urged media organisations, commentators and members of the public to avoid linking the two organisations, warning that such reports could mislead the public and unfairly associate the company with alleged criminal activities beyond its control.
According to the company, it has fully cooperated with the Nigeria Immigration Service and will continue to provide any relevant information required as investigations progress.
It reaffirmed its commitment to supporting law enforcement agencies in identifying and prosecuting individuals who misuse the QNET name to facilitate fraudulent recruitment, human trafficking, irregular migration or other criminal acts.
The company also clarified the use of the term “Model Q,” explaining that law enforcement agencies increasingly use it to describe criminal schemes in which fraudsters exploit the names of legitimate direct-selling companies and established brands to lure victims with false promises of employment, overseas travel, migration opportunities or guaranteed income.
It stressed that “Model Q” does not refer to QNET’s legitimate business operations but rather to criminal activities carried out through the unauthorised use of recognised brand names.
QNET maintained that it does not offer employment opportunities, visas, overseas travel or guaranteed financial returns through its independent distributors.
It explained that its business model is based solely on the direct sale of wellness and lifestyle products.
The company warned that anyone soliciting money for jobs, migration, travel or guaranteed investment returns in QNET’s name is acting without its authorisation.
According to the statement, criminal groups have repeatedly impersonated the company’s brand to deceive unsuspecting members of the public.
QNET said it considers itself a victim of such brand impersonation and has been working with law enforcement agencies in Nigeria and other countries to share intelligence, support investigations and protect potential victims.
The company commended the Nigeria Immigration Service for what it described as an intelligence-led operation that resulted in the rescue of victims and efforts to dismantle transnational criminal networks.
It reaffirmed its readiness to continue collaborating with the Service and other relevant authorities to ensure that those exploiting its name for criminal purposes are brought to justice.
QNET also advised members of the public to verify any claims involving the company through its official communication channels and to report suspicious offers relating to employment, travel, migration or investment made in its name.
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