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2013 is Year of Safer, Cheaper Air Business – Uriesi

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George Uriesi is managing director, Federal Airports Authority of Nigeria (Faan), a service organization statutorily charged to manage all Commercial Airports in Nigeria and provide service to both passenger and airlines
Uriesi is one of Nigeria’s best brains in the aviation sector with a career spanning more than 20 years both at home and abroad.
He spoke to peter ugwu on a wide range of issues

Faan’s Success in 2012 and Projection for 2013
So far, a lot of vision has been put in place. And we are hopeful of bountiful benefits of those efforts in 2013.

Our 2012 remodeling project went into a different gear, especially with the commissioning of the General Aviation Terminal (GAT) in Lagos.

This year we hope that some of the other airports that have been completed will be commissioned. Benin for instance is already been used; Kano is completed and Yola is nearing completion.

 So, quite a number of them have been completed and we shall also step into the second phase which is another eleven airports.

Secondly, this year we are looking at the commencement of construction work of brand new airports in Lagos, Abuja, Port Harcourt and Kano.

This is also to ensure that Nigerians have world class facilities at the airports. The intention is to develop those areas as international hubs.

We are also going to grow the cargo business by developing cargo airports. That is, designating airports-container cargo terminals.

That is to diversify the earnings of revenue, in such that airports that are designated as cargo will develop along that line.

For instance, in Kano, which is one of the designated areas, if there is a strong point in terms of vegetable, there will be refrigeration, markets, etc., that will be built alongside.

Discussions are on-going with the Chambers of Commerce to get market, so that such goods will be transported.

And if you look at oranges and pineapples, ours are of international standards, but right now it is the Philippines that are gaining more from the market internationally.

That is a window open to Nigeria, but yawning for development. But after our modalities processes, we should be able to be airfreight goods directly, whether it is from Aba, Enugu, Owerri, Ibadan or Ilorin.

That alone will generate a lot of activities instead of the present gluts that farms are left with their products harvested; they lose money and get discouraged.

It will not only open up the market, it will make the airports more sustainable, and create a value chain of economic activities, in such that the airport user, the airline will benefit. 

The farmer and the Youths will benefit also, because there will be employment generation.

Strategies in Place to Actualize the Objectives
First is the removal of tariffs in the passenger planes.

This strategy married with the Federal Ministry of Aviation master plan will definitely make it cheaper for domestic airlines to operate.

By implication it will boil down to cheaper ticket. Because there is no reason, whatsoever, with the intervention being put in place that an hour flight should cost N30, 000. It should come down to less than N10, 000, so that the common man can afford to fly.

Invariably, we are looking at what major components constitute high costs for the domestic airlines and those are the areas government is looking at.

And the Federal Airport Authority of Nigeria (Faan) is not leaving any stone unturned in the area of staff re-orientation, which formed part of the Aviation master Plan pursued by Princess Stella Oduah led aviation ministry.

Faan is spearheading a number of the reorientations, in terms of attitude to work, operation. So that with these new facilities there will be a new way of thinking, as regards passenger management, personnel relationship, security, safety, etc.

Those are issues that will be on the front-burner. However, the emphasis shall remain safety, safety, safety.

Developing New Airports Alongside the Remodeling Projects
There was a stipulated template as encapsulated by the Aviation Master Plan (AMP). And the master plan is such that Nigeria should take her place as the leading aviation nation in Africa.

It was also put in view that aviation should be a major economic earner. There are a lot of things that must be in place for us to realize those dreams.

That is why we are striving to ensure the infrastructures that have been going down for the last 30 years are rehabilitated.

For us to be taken serious worldwide, we must have facilities that meet up with international standards. Facilities must be in place for us to become a key player.

For instance, in terms of airplanes, there are certain planes that may not be able to land in our airports, because of their sizes or technologies in them.

That gives rise to the fact that we need to open up our frontiers and re-organise. We believe that with the expansion of some airports from passenger to cargo business there will be so much that the facilities will be optimally used.

Not only that, there is also the Aerotropolis project-developing cities around airports, and that will assist in trade facilitation.

How? Some passengers fly to Lagos for maybe one hour from Abuja and they spend about three hours to get to the Island.

But if there are facilities to do business here, there will be no need to do that. They can actually fly in, do their businesses and fly out; that is the new business model anywhere in the world.

 So, if you create the facilities, hotels, banking halls, conference centres, all within the airport environment, definitely, it will make the process more attractive. Those are the considerations we think make it mandatory that we provide more facilities on the ground than we have now.

Purchase 30 New Aircrafts for Operators
Well, it is a worthwhile project been handled by the Ministry of Aviation. Sometimes, I tend to explain to people about the project so they would get the big picture clearer.

However, the Federal Ministry of Aviation has the modalities and can only explain more on that.

At present, the Authority is focused on the reconstruction of 22 airports across the country as initiated by the Minister of Aviation, Princess Stella Oduah.

So, I want to use this medium to dispel the rumour that it is Faan that is in-charge of the purchases. No, it is under the purview of the Ministry.

Committee on Disposal of Abandoned Aircrafts
We need to understand that the cases are actually in three categories. The ones that have cases in courts are been resolved by our legal department.

There are also the second stages where people just abandoned the aircrafts. We have contacted them through the Committee headed by Captain Henry Omeogu, director of Operations, Faan.

We are happy that the Committee has already made efforts towards explaining to some of the owners, who have eventually indicated interests to evacuate them.

The third category comprises of those who are willing to evacuate them but the aircrafts are tied to loans.

So, we are looking at strategies, but definitely as chairman of the Committee said, there will be no stopping us.

We are determined to ensure the abandoned aircrafts are moved out, because they constitute a danger, especially of bird strikes.

They provide shades that birds can hide in. although, we don’t want to create an alarm, but it is a danger.

On the other hand, it does not fit into the new image we want of world class facility. And the committee is ensuring that will be done immediately.

Stopping Airlines from Abandoning Aircrafts
Yes, we are actually looking at the possibilities. Usually, in other countries (like in America) there are airports in the desert that are designated for that.

When an airplane is getting aged or the operator wants to abandon it, you take it there. That is what we are also looking out.

There were actually one or two airports that were earmarked for that, but the rise in activities and awareness, there was a change of plans.

However, there will be designated areas far away from these areas for activities.

Relationship between Faan and Some Airport Concessionaire
Well, there are different relationships, depending on the concessionaires we are handling. There are those who out rightly took advantage of Faan and by implication, the commonwealth of the Nigerian people.

They were using agreements that were deliberately coined against Faan to their benefits. And that is being reviewed to the benefit of Nigerians. And those agenda are been vigorously pursued.

We are also happy that a lot of progress is being made. Nigerians are happy for it as well. There are other concessionaires that are not up and doing.

For instance, the cleaners – toilets are left unattended to. We concession it out, but because of the capacity of the company involved, we are having a backlash; if you go to some of the toilets and they are not well kept, there is a concessioner that ought to do that.

At the same time, to our numerous customers and clients, they would blame it on Faan. So, the managing director has already given them ultimatum to either meet up with the terms of agreement or they will be shown the way out.

There will be no compromise. We don’t believe that the old order (in operation) should be part of the operations in the new facilities.

Nigerian deserve the best, they are paying for it. To other concessioners that are operating along the terms of agreement, we encourage them, because Faan is a service provider and we will not shy away from providing enabling environment for the private sector to flourish, because the dream is let private sector handle most of these activities.

Level of ICT Inclusion In Airport Administration?
Information Communication Technology, ICT is aviation, just as aviation is ICT. There are a lot of efforts to improve on what is on ground, especially this year. We will recall the automation of our resources platform.

Of course, the world is going ICT and if we want to operate world standard airport system, we have no option than to align ourselves in the trend.

Our ICT inclusion is needful in the areas of human capital development, services, training and re-training.

Anybody who wants to be a serious player, not only in aviation, must not take ICT for granted, because every activity is affected. And that is why is on the forefront to ensure our system is ICT compliance.    


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Brands Jostle for CVA 2024 as Consumers Vote

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Ongoing voting for brands on the Consumers Value Awards portals, consumers expressed brand satisfaction with their votes.

Over 40 categories of brands are listed based on consumers’ nominations on the Consumers Value Awards portal for voting as Value-for-Money brands in the 2024 edition of the award.

Consumers cast votes for brands to express satisfaction among various brands.

Presenting the one-month result, Akonte Ekine, CEO of BrandXchange, said the initiative is transparent and objective. It’s the consumer position on brands as nomination and voting drive the platform.

According to him, in the Telecommunications category (MNOs), MTN leads with 51.1% of the votes recorded in the first month, Spectranet has 47.6% of the votes in the Internet Service Provider segment, and MTN has 69.2% votes for ISP under the MNOs.

In the ongoing 3rd edition voting, two new categories of sanitary pad and Ice Cream are experiencing consumers’ attention as Always Sanitary Pad leads the segment with 63.6%, Just Delight Ice Cream at 36.2% and Viva Detergent at 41.7%.

Other leaders on the voting platform of Consumers Value Awards based on consumer preferences in the first month under home appliances (Television, Refrigerator, Air conditioner and washing machine) are Samsung 40%, Haiier Termocool 40%, Lontor 40% and Haier Termocool 42.9% respectively.

Trophy leads Alcohol Beverage with 50% of the votes, and Pepsi takes 62.5% of ⁠Carbonated Drinks. It is a tie among consumers on the cooking oil and regular Toot paste as Kings Oil and Power Oil achieved the same vote of 50%, Colgate Toothpaste and Close Up Toothpaste also tied with 26.7% votes each in the categories while Dabur Toothpaste leads in the herbal toothpaste category with 55.6%.

Lafarge Cement leads with 62.5% in the Cement, Dangote Sugar has 55% of the votes in Sugar, Leadway Insurance has 57.1%, Eva leads the Table water category with 38.5%

Other leaders in various segments based on consumer votes on the Consumers Value awards platforms are Maltina 40%, Dettol 37.5%, Peak Milk 80%, Golden Penny Spaghetti 80%, Indomie Noodle 85.7%, Checkers 90%, GTB 66.7%, OPay 62.5%, Morning Fresh 62.5%, and Gala Sausage Roll 94.4%.

Also, knorr Cube 57.1%, Lipton Tea Bag 83.3%, Vaseline 71.4% and Golden Morn lead their sectors, Milo and Bournvita tied with 50% of the vote each as leaders alongside MTN and Cadbury tying with 40% votes under Consumer-Friendly brands.

Vitafoam 44.4%, Guinness Stout 83.3%, Mobil Engine oil 100% (International Engine Oil Brand), Oleum Oil 100% (Made in Nigeria Brand), Hypo and Harpic 50%, Fearless 33.3%, Abidec 80%, Reload Kids 60% Reload Adult 66.6%, and Bet 9ja 50%

The voting will close on 30th June 2024.

 


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Access Bank, Mastercard Join Forces to Expand Opportunities for Cross-Border Payments for African Businesses and Consumers

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Access Bank Group, one of Nigeria’s leading multinational bank has launched an innovative solution in collaboration with Mastercard to expand access to cross-border payments and remittances to and from the continent, bringing Africa closer to the global economy. By leveraging the network and treasury capabilities of Mastercard Move, Access Bank, through its cutting-edge Access Africa platform, shall empower individuals and businesses to enjoy instant, traceable, seamless, and cost-effective international transactions.

L-R: Folasade Femi-Lawal, Country Manager, West Africa, Mastercard; Mr. Roosevelt Ogbonna, Group Managing Director, Access Bank; Mark Elliott, Division President, Africa, Mastercard, and Chizoma Okoli, Deputy Managing Director, Access Bank, at the Mastercard and Access Bank Cross-Border Payments Solution Media Briefing on May 8, 2024, in Lagos, Nigeria.

L-R: Folasade Femi-Lawal, Country Manager, West Africa, Mastercard; Mr. Roosevelt Ogbonna, Group Managing Director, Access Bank; Mark Elliott, Division President, Africa, Mastercard, and Chizoma Okoli, Deputy Managing Director, Access Bank, at the Mastercard and Access Bank Cross-Border Payments Solution Media Briefing on May 8, 2024, in Lagos, Nigeria.

Effective today, the newly launched solution will be operational across Africa, with expansion plans in place for further penetration across the continent. The solution offers a global gateway for businesses and individuals that are leveraging Access Bank Group’s deep understanding of the African markets and forward-looking vision that aims to realise customers aspirations through innovative product sets. Stitching together Mastercard’s multiple complementary network assets and the treasury capabilities of Mastercard Move, this collaboration offers customers more choices with their payment means.

Cross-border remittances continue to play an important role in Africa’s economy, with flows to Sub-Saharan Africa increasing by approximately 1.9% in 2023 to $54 billion as a result of strong remittance growth in Mozambique, Rwanda and Ethiopia, with Nigeria accounting for 38% of the remittance flows. In 2024, remittance flows to the region are projected to increase by 2.5%. B2B Cross Border payments serve as a lifeline to a large section of businesses who are reliant on regional and international trade to fuel the growth of the African economies.
“We are thrilled to collaborate with Mastercard to advance financial inclusion in Africa through the Access Africa initiative,” said Robert Giles, Senior Advisory, Retail Banking, Access Bank. “By combining our strengths, we can unlock new opportunities, bridge the financial divide, and create a more inclusive and prosperous future for all Africans.”

Customers in Access Bank’s operating countries in Africa, are now enabled to send and receive cross-border payments globally through to and from various channels including bank accounts, mobile wallets, cards, and cash.

“Empowering Access Bank customers with innovative solutions that prioritize choice, security, and flexibility is an achievement that fills us with great pride. This collaboration signifies our commitment to transforming payment experiences as it not only brings cutting-edge payment solutions to the bank’s diverse clientele, but also extends the reach of Mastercard’s financial and digital ecosystem, ensuring millions from underserved communities can actively participate in the evolving financial and digital economy,” adds Mark Elliott, Division President for Africa at Mastercard.

Fable Fintech, an Express Partner of the Mastercard Move Partner Program, was the technical implementation partner of the solution, effectively collaborating with both Access Africa and Mastercard Move experts. Naushad Contractor, Co-Founder and CEO of Fable Fintech added: “We were fortunate to be the fulcrum of the seamless multi-country integration of one of the largest banks in Africa using the network and resilience of Mastercard’s cross-border assets. We look forward to working on more innovative solutions that will empower the lives of African customers and businesses.”

This groundbreaking collaboration represents a significant step towards creating a more inclusive financial ecosystem in Africa, with both parties determined to continue actively leveraging their collective strengths, resources, and expertise to drive meaningful change and financial inclusion for millions across the continent.


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Imposition Of 0.5 % Cybersecuruty Levy Is Anti people, Says CNF

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The Cloud Network Foundation ( CNF) has called on the federal government to immediately rescind the decision on the implementation of the 0.5 per cent tax on cybersecurity.

In statement released today by the Non-governmental Foundation and signed by its chairman, Mr Abimbola Tooki, the foundation said the tax will further make life more unbearable for Nigerians.

CNF is a technology focused Foundation that ensures the well being of the technology ecosystem and Netizens.

The FG announced recently that the Central Bank of Nigeria will begin the implementation of an amended 2015 Cybersecurity Act that will levy a 0.5% fee on all electronic transactions on May 20.

It will be noted that the levy is an increase of 900% from an earlier levy of 0.005%.

CNF is also worried that the cybersecurity levy would be charged in addition to existing fees like stamp duty, a ₦50 charge on electronic receipt or transfer of money in any deposit money bank or financial institution on the sums of ₦10,000 or more.

The new levy if implemented, will constitute a burden on Nigerians, especially low-income earners who rely on electronic transactions for daily activities.

At a time the President Bola Tinubu government should be easing the burden on Nigeria as a result of the already high cost of living occasioned by high prices of goods and services the government chose to inflict more pain on people by introducing more taxation on the people.

The statement further said it considers the new cybersecurity levy like a reenacting of the days of Israel under king Rehoboam when the people thought the new king would ease their burden which his father Solomon put on them, he turns out he was set to increase it to an unbearable proportion through imposition of much taxes.

CNF said it considers the latest tax extortionary more so as the new levy will be imposed on all bank transactions.

The Cybersecurity Act was first passed in 2015 and introduced a 0.005% levy on electronic transfers.

A June 2018 CBN memo directed banks to collect the levy on “electronic transactions occurring in a bank or on a mobile money scheme or any other payment platform that have an accompanying service charge.”

In 2024, the Act was amended and the levy was increased by 900% to 0.05% and it also extended the levy to cover fintechs, payment service providers, and other financial institutions.

On May 3, the National Security Adviser, Nuhu Ribadu called for an implementation of the amended act, highlighting the increased influence of the NSA. The cybersecurity levy will be remitted monthly to the National Cybersecurity Fund

The Central Bank of Nigeria on Monday, issued a circular to all commercial, merchant, non-interest, and payment service banks, among others; noting that the implementation of the levy would start two weeks from Monday, May 6, 2024.

The circular stated partly, “The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution. The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy.”

Thereafter, the levy will be deducted by financial institutions and then remitted to the National Cybersecurity Fund administered by the Office of the National Security Adviser.


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