General News
Air Cargo Demand Continues Upward Trajectory in February
The International Air Transport Association (IATA) released demand growth results for global air freight markets for February 2017 showing an 8.4% increase in demand measured in freight tonne kilometers (FTKs) compared to the same period last year.
After adjusting for the impact of the leap year in 2016, demand increased by 12% — almost four times better than the five-year average rate of 3.0%.
Freight capacity, measured in available freight tonne kilometers (AFTKs), shrank by 0.4% in February 2017.
The continued growth of air freight demand in 2017 is consistent with an uptick in world trade which corresponds with new global export orders remaining at elevated levels in March. Of particular note is the expanded volume of semi-conductor materials typically used in high-value consumer electronics.
“February further added to the cautious optimism building in air cargo markets. Demand grew by 12% in February—about four times the five-year average rate. With demand growing faster than capacity, yields got a boost. While there are signs of stronger world trade, concerns over the current protectionist rhetoric are still very real,” said Alexandre de Juniac, IATA’s Director General and CEO.
The rapid growth of niche markets such as cross-border e-commerce and time and temperature sensitive pharmaceutical are showing robust growth as noted at the World Air Cargo Symposium held in Abu Dhabi last month.
“Any optimistic look at the future sees growing demand for specialized value added services. Shippers are telling us that the key to turning the current uptick in the cargo industry’s fortunes into longer-term growth is modernizing our antiquated processes. We must use the current momentum to push ahead with the elements of the e-cargo vision—including the e-air waybill which is nearing 50% market penetration,” said de Juniac.
Regional Performance
All regions, with the exception of Latin America, reported an increase in demand in February 2017.
Asia-Pacific airlines posted the largest year-on-year demand increase among regions in February 2017 with freight volumes growing 11.8% (more than 15% adjusting for the leap year). Capacity increased by 2.0% over the same time.
The increase in demand is captured in the positive outlook from business surveys in the region and is reflected in the increase in trade across Asia-Pacific’s main freight lanes to, from, and within the region, which have strengthened considerably over the past six months.
Seasonally-adjusted volumes dipped slightly in February but remained up considerably since early 2016 and are now back to the levels reached in 2010 during the post-global financial crisis bounce-back.
North American airlines’ freight volumes expanded 5.8% (or more than 9% adjusting for the leap year) in February 2017 compared to the same period a year earlier, and capacity decreased by 3.1%.
This was driven in part by the strength of freight traffic to and from Asia which increased by 5.7% year-on-year in January. The further strengthening of the US dollar continues to boost the inbound freight market but is keeping the export market under pressure.
European airlines posted a 10.5% (or around 14% adjusting for the leap year) increase in freight volumes in February 2017 and a capacity increase of 1.4%. The ongoing weakness of the Euro continues to boost the performance of the European freight market which has benefitted from strong export orders, particularly in Germany, over the last few months.
Middle Eastern carriers’ year-on-year freight volumes increased 3.4% (or approximately 7% adjusting for the leap year) in February 2017 and capacity decreased 1.7%.
Seasonally adjusted freight volumes continue to trend upwards and demand remains strong between the Middle East and Europe.
Despite this, growth has eased from the double-digit rates which were the norm over the past ten years. This corresponds with a slowdown in network expansion by the region’s major carriers.
Latin American airlines experienced a contraction in demand of 4.9% (or around 1% adjusting for the leap year) in February 2017 compared to the same period in 2016 and a decrease in capacity of 7.2%.
Recovery in seasonally-adjusted volumes also stalled with demand 14% lower than at the peak in 2014. And freight volumes have now been in contractionary territory in 25 out of the last 27 months. The region’s carriers have managed to adjust capacity, which has limited the negative impact on the load factor. Latin America continues to be blighted by weak economic and political conditions.
African carriers’ saw freight demand increase by 10.6% (or more than 14% adjusting for the leap year) in February 2017 compared to the same month last year and capacity increase by 1.0%.
Year-to-date demand has increased by 16.2%, helped by very strong growth on the trade lanes to and from Asia.
The increase in demand has helped the region’s seasonally-adjusted load factor rise by 2.8 percentage points so far in 2017.
Dangote Petroleum Refinery is reportedly nearing completion of a $2.5 billion private placement that values the company at about $40 billion ahead of its planned public listing.
Private placement is the direct sale of company shares or bonds to pre-selected investors instead of the general public and it is used to raise money quickly while avoiding strict public reporting rules.
People familiar with the transaction said investors acquired as much as 6 per cent of the refinery, according to a BusinessDay report.
The reported terms would value the business at approximately $40 billion.
Neither Dangote Group nor the refinery has publicly announced the final amount raised, the identities of most subscribers or the precise percentage sold.
The figures should therefore be treated as transaction details supplied by unnamed sources rather than confirmed company disclosures.
The reported $2.5 billion total is nevertheless significant as it indicates strong demand for exposure to a privately controlled refinery that has rapidly become central to Nigeria’s fuel supply and an increasingly important exporter of petroleum products.
The placement was said to have attracted more demand than the available shares, allowing the company to secure substantially more than the amount initially associated with the fundraising exercise.
Femi Otedola, chairman, First HoldCo, is the only major participant publicly identified in the report.
He reportedly committed $100 million to the transaction and sold his investment in Geregu Power Plc to finance the acquisition.
Nigeria’s pension industry was also reportedly cleared to participate.
Access to more than $17 billion in retirement assets would broaden the refinery’s potential investor base beyond wealthy individuals and conventional institutional buyers.
Participation by Pension Fund Administrators would, however, require careful attention to valuation, liquidity and portfolio-concentration limits.
Retirement funds must balance the attraction of a large Nigerian industrial asset against their responsibility to protect contributors’ savings.
The implied $40 billion valuation represents investor expectations about the refinery’s future earnings rather than only the physical cost of constructing the facility.
Its ability to process 650,000 barrels of crude daily gives it a central role in supplying Nigeria and other markets, but its commercial performance remains connected to crude availability, product prices, exchange rates and regulation.
The refinery has struggled to obtain all the Nigerian crude it requires under the government’s naira-for-crude arrangement.
It has consequently purchased some feedstock internationally and recently moved local petroleum-product pricing into dollars to align sales revenue more closely with its foreign-currency expenses.
Those constraints will be important during any public offering.
Prospective shareholders will want greater clarity on crude-supply contracts, debt, operating margins, export revenue and the company’s relationship with Nigerian regulators.
It is also unclear whether the private placement involved newly issued shares, a sale by existing owners or a combination of both.
That distinction determines whether the reported $2.5 billion becomes fresh capital for the refinery or proceeds received by selling shareholders.
The transaction could provide a useful price reference for the planned initial public offering.
Federal government will next month launch Nigeria’s first national organized crime strategy to strengthen the country’s response to terrorism, cybercrime, human and drug trafficking, kidnapping, illicit financial flows, and other forms of organized crime.
Major General Adamu Laka, national coordinator of the National Counter Terrorism Centre under the Office of the National Security Adviser, disclosed this in Abuja during the validation of the strategy document.
He said the strategy provides a coordinated national framework for tackling organized crime through improved intelligence sharing, stronger collaboration among security agencies, and closer cooperation with the criminal justice system, civil society organizations, and international partners.
Major General Laka explained that the document was developed through a partnership involving the Federal Government, the United Nations Office on Drugs and Crime (UNODC), the United States Government, and other stakeholders.
Speaking at the event, Cheikh Toure, UNODC representative, said the strategy would strengthen Nigeria’s capacity to combat transnational crimes, including drug trafficking, cybercrime, human trafficking, kidnapping, and illicit financial flows.
Also speaking, Douglas Grane, acting director of the United States Department of State’s Bureau of International Narcotics and Law Enforcement Affairs, reaffirmed the U.S. government’s support for Nigeria’s efforts to tackle organized crime through stronger inter-agency and international cooperation.
Representatives of the National Institute for Strategic Studies, the Nigeria Financial Intelligence Unit, and the National Cyber Security Centre also endorsed the initiative, describing it as a major step towards improving Nigeria’s fight against organized crime.
FATE Foundation, with funding from the Citi Foundation, has launched the Youth Entrepreneurship Incubation Programme to equip young people in Nigeria with financial literacy and entrepreneurship skills.
Delivered through free, safe, and accessible platforms, the programme supports the incubation and scaling of youth-led enterprises, enabling income generation and job creation.
In October 2025, FATE Foundation was selected as a recipient of Citi Foundation’s 2025 Global Innovation Challenge to Accelerate Youth Employability. Joining the cohort of 50 organisations globally, the Foundation will receive $500,000 over two years to advance its youth employability initiative.
“We are excited to be selected for Citi Foundation’s 2025 Global Innovation Challenge,” said Ayomide Akindolie-Igwe, Executive Director of FATE Foundation.
“This support enables us to equip young entrepreneurs in Nigeria with the financial literacy and skills needed to build and scale sustainable businesses.”
The programme addresses youth employability by tackling Africa’s growing jobs crisis. By 2030, the African continent will be home to 40% of the world’s youth, and with one in three under 35 already unemployed, this initiative will support Nigerian youth with a two-phase approach. It begins with financial literacy training before progressing to entrepreneurship development, incubation support, and access to tools needed to build viable, job-creating businesses.
“Through this innovative initiative, FATE Foundation is supporting low-income Nigerian youth to develop essential financial and entrepreneurial skills using accessible platforms.
“This support is not just helping individuals to succeed; it is building a solid foundation for sustainable enterprises that will drive job creation and contribute significantly to our nation’s economic vitality. This initiative is empowering and investing in the future of Nigeria, one youth at a time,” said Nneka Enwereji, MD/CEO Citibank Nigeria Limited.
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