News
Aviation Crisis: Industry Indicts Banks
Either by mistake or in the hope that it will not be noticed, Nigerian banks gave airlines in the country less change than is right, leaving them to bleed profusely with debts running into billions, a Nigerian CommunicationsWeek investigations have shown.
Consequently, short-term loans which orchestrated buoyancies and explosive growths in the Nigerian aviation industry are leaving scares on the flesh of the airlines as businesses fall to less than expected.
Even the N300 billion intervention funds released by the Central Bank of Nigeria (CBN) for the sector have failed to impact as charges and counter claims rent the industry.
Industry sources accuse the Bank of Industry (BOI), where the intervention funds are domiciled of conniving with commercial banks to inflict deep cuts on the airlines’ finances.
The CBN had while injecting the fund to the sector said that “airlines can now partake from the funds and those that are indebted to banks can refinance their loans and amortize them over a period of ten to 15 years. This we believe will help put off a feared financial crisis in the aviation industry”.
Nigeria CommunicationsWeek however gathered that airlines business in the country have witnessed some erratic growth in recent years, with older domestic names such as Chanchangi, Aero Contractors and IRS are slugging it out with new entrants like Arik, Dana and the Virgin Nigeria now called Air Nigeria.
All of them are however in form of trouble or the other but mostly financial and may never get out of their present dilemma unless there is a far-reaching intervention.
At last count, the sixteen domestic airlines, both operational and dormant, are trapped in the debris of over N 325 billion debt owed various aviation agencies, banks and government agencies.
Apart from the huge debt overhang, the airlines are faced with the problems of high fuel costs, ageing aircrafts and high operating costs.
Nigeria CommunicationsWeek recalled that only recently, three airlines locked horns with their financiers.
One of them, a long time player in the industry was nearly grounded on account of its indebtedness to then Oceanic Bank.
Benjamin Okewu, president of Air Transport Senior Staff Association of Nigeria (ATSSAN) said that industry needs long-term planning for survival.
“The truth is that when the intervention money was released neither the Ministry of Aviation nor the airlines were directly involved in the sense that the commercial banks in conjunction with the Bank of Industry (BOI) were the managers of the fund. And the commercial banks saw it as an ample opportunity to get hold of the funds they have already released to the airlines. So the airlines are barley surviving. It has gotten to the extent that they can’t pay their service agents and staff. The workers are becoming the scapegoats.
Nodding in agreement, Captain Dele Ore, president of Aviation Round Table (ART) called for swift action by the government by injecting more funds into the system, while the regulatory agency steps up its functions to ensure in the industry.
He said: “NCAA should have carried out financial audit of the airlines before now. The present situation paints a gloomy picture for the industry because nobody knows if the airlines are stable to carry on. On the part of the government, it needs to add some more grants with human face. That is the interest rates should be reduced to single digit interest rate and not the interest rate that we have now. And when the Minister alleged that the fund was misappropriated, she didn’t tell us how and when things started going wrong”
On the alleged diversion of N300 billion government grants by the airlines to personal uses by the chief executives of some of the airlines, Ore said, “And anybody indicted for diverting the money obtained in the name of a particular airline must be prosecuted to serve as deterrent to others. The problem is that a situation where everybody wants to be an MD or CEO of an airline, because they think is a money spinning sector, even without commensurate responsibility, must end. If that should continue, it means we are not ready to develop”.
The World Bank Group has announced the 31-month debarments of United Aviation Services Limited (UNASEL), a transportation services company based in Nigeria, and Air Vice Marshal Alkali Mamu, its owner and president, “in connection with fraudulent practices under the Enhancing Niger Northeastern Connectivity Project,” according to a press release issued by the multilateral development bank.
The statement said that the project aims to enhance connectivity and road safety along the Zinder-Agadez Road section and improve access to basic socioeconomic infrastructure for selected communities in that road section.
However, according to the statement: “UNASEL and Mr. Mamu presented false experience documents in a prequalification application to qualify for a contract under the project. This was a fraudulent practice under the World Bank’s sanctions framework.”
“The debarments make UNASEL and Mr. Mamu ineligible to participate in projects and operations financed by Bank Group institutions. The debarments are part of two settlement agreements under which UNASEL and Mr. Mamu admit culpability for the underlying sanctionable practices,” it added.
The statement further said: “Per the Bank Group Sanctioning Guidelines, the settlement agreements provide for a reduced period of debarment in light of UNASEL and Mr. Mamu’s cooperation.
As a condition for release from sanction under the terms of the settlement agreements, UNASEL and Mr. Mamu commit to developing and implementing integrity compliance measures that reflect the relevant principles set out in the Bank Group Integrity Compliance Guidelines, and Mr. Mamu further agrees to complete corporate ethics training.
UNASEL and Mr. Mamu also commit to continue to fully cooperate with the Bank Group’s Integrity Vice Presidency.
“The debarments of UNA SEL and Mr. Mamu qualify for cross-debarment by other multilateral development banks under the Agreement for Mutual Enforcement of Debarment Decisions that was signed on April 9, 2010.”
Governor Peter Mbah of Enugu State, has approved the allocation of a parcel of land in Enugu, the state capital, for the establishment of a state-of-the-art Digital Fabrication Centre by the Industrial Training Fund.
Mbah announced this while receiving a delegation from the Industrial Training Fund on a courtesy visit to the Government House, Enugu.
The ITF disclosed this on Friday in a statement signed by its Director of Press and Public Relations, Thomas Ngor.
According to the statement, Mbah described the proposed project as timely and aligned with his administration’s vision of transforming Enugu into a leading destination for investment, innovation and technology-driven industrial development.
He noted that the future of economic prosperity lies in deliberate investments in human capital and emerging technologies, adding that the state has continued to create an enabling environment for innovation, enterprise and sustainable growth.
The governor explained that his administration has made technical education compulsory in the state’s basic education system, with emphasis on digital literacy, robotics and mechatronics to prepare learners for the future of work.
According to him, many traditional trades are now driven by digital technologies, making it imperative to equip young people with relevant technical competencies that will enable them to compete globally and contribute meaningfully to economic development.
Governor Mbah further disclosed that his administration has built smart schools across the state, equipped with robotics centres, mechatronics laboratories and other modern learning facilities, to prepare youths for the evolving global economy.
He noted that artificial intelligence is expected to contribute about $20tn to the global economy in the coming years.
He therefore stressed that the state must be intentional about upskilling its citizens, adding that the establishment of the ITF Digital Fabrication Centre will significantly strengthen the state’s drive to build a knowledge-based economy, foster innovation, promote local manufacturing and create employment opportunities for its growing youthful population.
Earlier, Afiz Ogun, the Director-General of the ITF, who led the delegation, said that upon his appointment by President Bola Tinubu, he was mandated to upskill Nigerian artisans to international standards.
He explained that the Fund subsequently repositioned its technical and vocational skills development efforts through strategic initiatives, including the Skill-Up Artisans Programme, which is designed to train, certify and license Nigerian artisans to international standards.
Ogun disclosed that the Fund had already established a Digital Fabrication Centre in Ikeja, Lagos, with the capacity to produce more than 400 different products. He therefore requested the allocation of land in Enugu State to establish a similar centre with the same production capacity.
According to him, the initiative is aimed at promoting industrialisation, reducing dependence on imports and preparing Nigerians for opportunities in the Fourth Industrial Revolution.
He also reaffirmed the Fund’s readiness to enter into public-private partnerships that will transform Nigeria’s artisanal ecosystem.
Ogun further noted that digital technologies, including artificial intelligence, robotics and computer-aided manufacturing, are rapidly transforming the global economy, making it imperative for Nigeria to deliberately invest in upskilling its workforce to remain globally competitive.
The ITF delegation was later conducted on a guided tour of facilities at one of the smart schools established by the Enugu State Government.
Glovo, a multi-category tech company, has announced its integration into the generative AI ecosystem with the launch of its “Shopping Assistant” for ChatGPT and Claude. Users can now discover retail products, compare prices, and seamlessly order any item using natural conversational language with the AI systems.
The Glovo experience inside such platforms introduces a conversational commerce model that shifts from a search-based web to an intent-based web. Rather than navigating traditional app menus and filters, users can express needs, such as asking for a “last-minute gift for a coffee lover under ₦50,000”, and the assistant handles semantic search, location validation, and product curation.
A Seamless, Concierge-Like Experience
Once both platforms have been connected through either ChatGPT or Claude apps, the user will be able to have a multi-turn dialogue where the assistant remembers context and constraints, such as budget caps. Users receive a visual carousel of up to five highly customised product options available at local stores. Each product displays its image, name, store details and ratings, and price. While the search and discovery experience takes place directly on the Generative AI platforms, selecting a product via the “view on Glovo” button takes the user to the Glovo mobile or web app, where the payment and final purchase are exclusively completed.
Strategic Focus on Retail and Growth
Glovo is prioritising the retail and grocery sectors for this initial launch, capturing the established habit of using AI for product research. Generative AI has driven a significant jump in retail traffic globally, so this first-mover advantage aims to meet customers where they are meeting Gen AI daily, and ensure it captures high-intent organic traffic as search behaviours evolve.
“We’re always looking for ways to meet our customers where they already are. Being available on Claude and ChatGPT means people can discover what Glovo has to offer as part of a natural conversation, with no friction. Glovo has always been about being the everyday app that provides choice and convenience, and this is another step in that direction”, said Shiro Theuri, Chief Technology Officer at Glovo.
How to look for products in the Glovo app through ChatGPT or Claude
- The user must sync ChatGPT or Claude with the Glovo app with the plug-in.
- Once synced, the user must type in @glovo followed by their request.
- The AI platform displays a carousel with 5 available options for the user.
- If the user wants to purchase any of the products or continue searching within the Glovo app, they must click “View on Glovo”, which will redirect the user to the Glovo app or website.
- After the order is confirmed, the store will prepare the item(s) and the courier will head up to the pick-up location. The user will receive the order in minutes.
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