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Reputation Driving Domestic Airfares In Nigeria

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Chido Nwakanma
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Check out the scene. It is the 01 floor of the Transcorp Hilton, Abuja. Airlines have their ticketing stands and offices herein. Office or stand may be an index of how prosperous the airline is.

Abuja-Lagos for that evening is almost fully booked on this Thursday. Getting out of Abuja on Fridays is a stretch but this has now extended to Thursdays.

The story of airfares on the domestic routes gets more interesting on such days. Arik Air has a slot for a princely N44, 000.

What about the next morning? It is N36, 000 economy on Arik Air. However, comparatively, it is N19 000 by Medview Airline and N18 000 by Dana Air.

Welcome to the new price regime in domestic airfares driven by reputation. It bears out the thesis that reputation creates wealth, first put in quantifiable terms in the work by Dr. Charles Fombrun hitherto of Harvard Business School, Reputation: Realising Value from the Corporate Image.

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Price equivalence was the norm for many years on the domestic air routes. Then smart corporate executives at cash-stressed Aero Contractors cooked up the idea of lower upfront fares to lock in income.

Passengers booked two weeks ahead or more. The closer to proposed departure date the more expensive the fare.

Aero could thus turnaround the income from pre-booking several times before the passenger actually flies.

It generated cash flow for the airline, made air travel affordable to many –thus expanding the market- while temporarily positioning the airline as friendly.

It also kicked in the era of market driven prices that often seem capricious. You could be on the queue and pay N5000 more than one or two persons right ahead of you as the airlines switch prices at will.

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Their counter staff are almost always incapable of providing lucid rationale for the changes, which are seemingly driven by competition, supply and demand and the operational exigencies of the business.

The variable pricing regime in domestic airfares is significant in marketing and reputation management.

Marketing experts understand that price is the most significant of the Ps in the marketing relationship.

Price signifies value, and all business is about the exchange of value. Price is at the intersection between the Ps of the seller and of the buyer.

Price represents income to the seller and expense to the buyer all of which speak of value.

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Marketing traditionally speaks of the 4Ps to mean product, place, price and promotion.

However, for the consumer, the 4Ps represent purpose, performance, price and presentation. Price is common and constant in both the Ps of the marketer and of the consumer.

Purpose and performance of that purpose determines the price a consumer is willing to pay while all of the foregoing is enhanced by its presentation. Welcome to the reputation economy.

Reputation is clearly the driver of the variable pricing regime in domestic air fares with Arik Air commanding premium pricing.

Arik’s dominance is a function primarily of perception, a key component of reputation. Since the incidents of air crashes and the link to aged aircraft, airlines with newer planes on their fleet are perceived as safer. Aero has assiduously presented the fact of its younger fleet.

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The point will bear emphasis that the dominance of a particular airline on the domestic routes – resulting in commanding premium fares- owes to perception more than any other factor. Yes, it has more planes. It covers more routes.

But its service delivery is not better than that of those with only two aircraft.

In the reputation economy, perception matters.

Reputation is a driver of business value. Sixty percent of respondents to a survey by The Reputation Institute believe that reputation has a high financial impact on their companies.

According to the 2013 RepTrack 100 Report, respondents also acknowledge that reputation helps

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•         Increase customer retention

•         Increase in sales/revenue

•         Increase in market share

•         Reduce cost of hiring/retention

•         Increase in share price

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•         Increase in profitability

•         Lower cost of doing business.

The reputation economy, the Reputation Institute states, “is a new market place reality in which people buy products, take jobs, and make investments based primarily on their trust, admiration and appreciation for the companies and institutions that stand behind them.”

As with airfares, companies in all sectors of the economy would hereafter extract value based on their reputations and consumer perception of the value they offer.

At the macro level, the Nigerian aviation sector needs a lot of work to burnish its reputation against the backdrop of statistics that cast doubts about the sector’s viability such as this: 139 private jets, 7 Airlines, 57 planes, 33 failed airlines in Nigeria.

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Chido Nwakanma is a communication strategist and marketer with extensive media and industry experience consulting in Nigeria and Africa. He wrote from Lagos.

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Anambra Seeks Digital Inclusion in Rural Communities

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Anambra State Government says it is exploring partnerships with the Federal Government and other stakeholders to extend digital connectivity to underserved rural communities across the state.

The Managing Director and Chief Executive Officer of the Anambra State ICT Agency, Mr Chukwuemeka Fred Agbata, disclosed this during a virtual media engagement with journalists on Thursday.

Agbata said rural connectivity remained a major challenge because telecommunications operators were often reluctant to invest heavily in communities where network deployment might not be commercially viable.

He said the state was willing to explore opportunities to leverage Federal Government infrastructure and the Universal Service Provision Fund (USPF) to extend connectivity to underserved communities.

“We understand what digital inclusion means because we are dealing directly with these communities,” Agbata said.

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According to him, the objective is to ensure that rural residents are not excluded from the benefits of digital government and the wider digital economy simply because of where they live.

Agbata said the effort formed part of the state’s broader digital transformation agenda, which is targeting deeper digitalisation of government services and a more digitally enabled business environment by 2030.

He said the second phase of the agency’s digital transformation agenda would focus on e-governance, digital infrastructure, smart government and the use of emerging technologies to drive development.

“My core vision is that we would have digitised every single government entity in Anambra State,” he said.

The ICT boss said the digital transformation agenda would extend beyond government ministries, departments and agencies (MDAs) to businesses and residents across the state.

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He said the agency was already developing websites for government MDAs and transforming them from mere information platforms into channels for delivering government services.

“We are building websites for all the MDAs. We are also automating them to be able to carry out services and give government support and government services through their websites,” he said.

Agbata said the initiative would reduce the need for citizens to physically visit government offices to access basic services.

He said the Smart Anambra platform had already demonstrated growing demand for remote access to government services.

According to him, the platform recorded about 14,000 visits between July 9 and July 29, averaging approximately 700 visits daily, despite limited publicity.

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He said the data indicated that residents were interested in accessing government services online, including applications, permits and identification-related processes.

“What the data is already showing us is that we really need to build a system that allows people to actually get government services remotely,” Agbata said.

He explained that the objective was to allow residents to initiate processes online, complete forms remotely and only visit government offices where physical presence was eventually required.

This, he said, would reduce the time and cost citizens spend travelling to Awka or other government offices to access services.

Agbata said services in areas including hospitals, schools and other government processes were being connected to Smart Anambra.

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Anambra Targets 2030 for Digital Government

Agbata said the state’s 2030 target was to deepen the digitalisation of government services and create an environment where businesses could increasingly operate within the formal digital economy.

He said the agency was working with the Ministry of Commerce to promote the formalisation of businesses, particularly SMEs and businesses operating in major markets.

“One of the biggest challenges that we have is that SMEs are not formalised enough,” he said, adding that the agency was exploring partnerships to address the challenge.

The ICT agency boss said the transformation would be gradual because major government initiatives required the necessary approvals and resources.

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On the possibility of making Anambra completely paperless, Agbata disclosed that the State Executive Council was already operating a paperless system.

He, however, said the entire civil service might continue to operate a combination of digital and paper-based processes for some time because of the complexity of government operations.

“What might happen is a dual situation,” he said, adding that selected MDAs could be used as pilots for deeper digital transformation.

Agbata also disclosed that the Anambra State ICT Agency had commenced the deployment of a locally trained artificial intelligence (AI) system to automate its operations and explore applications in governance, revenue management and public-sector productivity.

He explained that the agency did not develop a frontier large language model from scratch because of the huge computing and financial resources required.

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Instead, he said, it adopted an open-source model, modified it and was training it for specific local use cases.

“We have started doing our own local AI system. It is an open-source system, so we didn’t build our own frontier model. We basically looked at open source and modified it, and we are training it,” Agbata said.

He said the system had already been deployed to automate the agency’s operations end-to-end.

“We have used it to automate our agency end-to-end. Everything that we do now is currently automated,” he said.

Agbata said the agency was exploring how the model could be applied across other areas of government to improve productivity, address revenue leakages and strengthen governance.

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He said the AI initiative formed a major part of what he described as the agency’s “2.0” phase following his reappointment by Gov. Chukwuma Soludo.

According to him, the second phase would build on achievements in infrastructure, capacity development, e-governance and smart government while placing greater emphasis on AI and emerging technologies.

Agbata also said the state’s free public Wi-Fi initiative remained operational, stressing that the programme was introduced before the electioneering period.

“The free Wi-Fi didn’t start as a political thing, a campaign thing. It started way before the campaigns,” he said.

He explained that the strategy was adjusted during the campaigns to enable residents to follow the governor’s activities and participate in live engagements while on the move.

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According to him, existing Wi-Fi locations, including facilities at the state Secretariat, remain operational, although occasional downtime occurs, particularly during periods of adverse weather.

“There are downtimes now and then because with the rains and all of that, these things have their uptime and their downtimes, but it is still very much available,” he said.

He disclosed that there were currently no plans to establish additional Wi-Fi locations, noting that existing sites were still providing services.

Agbata said the state would continue to develop digital skills and education programmes, including Smart Schools and other capacity-development initiatives.

He also called for stronger collaboration among government, technology companies, telecommunications operators, local technology manufacturers and other stakeholders to accelerate the state’s digital transformation.

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He cited the procurement of about 2,000 computers supplied by indigenous technology company, Zinox, as an example of the state’s engagement with local technology providers.

Agbata said the agency would remain open to partnerships capable of supporting Anambra’s technology agenda.

He said the ultimate objective was to build an Anambra where residents and businesses could increasingly interact with government digitally, while technology becomes a central driver of economic development across the state.

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Nigeria Not Making Progress in Fiscal Transparency –US

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United States Government has said that Nigeria is not making significant progress in fiscal transparency, referencing gaps in the country’s budget disclosure, expenditure reporting, public procurement transparency and audit processes.

Nigeria Not Making Progress in Fiscal Transparency –US

The assessment is contained in a report by the United States Department of State, which reviewed Nigeria’s fiscal transparency practices in its 2026 fiscal transparency report for countries published on Tuesday.

The report noted that the US government stated that Nigeria made some key fiscal documents available to the public, significant shortcomings remained in the disclosure of budgetary information and the management of public finances.

The report noted that “the government made its enacted budget and end-of-year report widely and easily accessible to the public, including online, but did not publish its executive budget proposal within a reasonable period.”

It also stated that while the Nigerian government had made information concerning the country’s debt obligations publicly available, its budget documents failed to provide a comprehensive picture of government revenues and expenditures.

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“The government made information on debt obligations, including major state-owned enterprise debt, publicly available, but budget documents did not provide a substantially complete picture of the government’s revenues and expenditures, or break down expenditures to support executive offices in the budget,” the report stated.

The US government further raised concerns about discrepancies between Nigeria’s approved budget and the actual revenues and expenditures recorded during implementation.

It said, “Actual revenues and expenditures did not reasonably correspond to those in the enacted budget.”

The report also criticised the country’s supreme audit institution, stating that it did not meet international standards of independence and did not publish substantive reports, although it had access to the entire executed budget.

“The supreme audit institution did not meet international standards of independence or publish substantive reports but did have access to the entire executed budget,” it stated.

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The assessment, however, acknowledged that Nigeria’s sovereign wealth fund had an adequate legal framework and disclosed information about its funding and the general approach to withdrawals.History

“The sovereign wealth fund had a sound legal framework and disclosed its source of funding and general approach to withdrawals,” the US government said.

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World Bank Investing $25 million in Equity in Jumia Technologies

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The World Bank Group is supporting the expansion of Africa’s digital commerce infrastructure to help small businesses reach new markets, create jobs, and strengthen economic opportunities across the continent.

Through Jumia, Africa’s leading e-commerce platform, the investment is expected to enable approximately 60,000 local annual active sellers to participate more fully in the digital economy, support around 1,800 direct jobs, and create income-generating opportunities for more than 100,000 independent sales agents.

As digital commerce continues to grow across Africa, reliable access to online marketplaces, logistics networks, and digital payments are becoming increasingly important for entrepreneurs and small businesses seeking to expand beyond local markets. Strengthening this infrastructure can help firms increase sales, improve productivity, and connect consumers with a wider range of affordable goods and services.

To support this effort, the International Finance Corporation (IFC), the private sector arm of the World Bank Group, is investing US$25 million in equity in Jumia Technologies AG (Jumia), Africa’s largest public e-commerce platform. The investment will support Jumia’s next phase of growth across its core African markets, strengthening its integrated marketplace and logistics network.

By expanding access to digital commerce tools and services, the investment will help businesses grow, improve price transparency, and contribute to more inclusive and resilient private sector development across Africa.

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“The support of the World Bank Group is a milestone for Jumia and for African e-commerce more broadly. It validates both the discipline we have brought to our business in recent years and the tangible impact our platform has on small businesses, jobs, and consumers across our eight markets. With partners like the IFC, we can accelerate the digital commerce infrastructure Africa needs” said Francis Dufay, CEO of Jumia.

“Jumia demonstrates how pan-African e-commerce platforms can expand economic opportunity at scale. Our investment supports the company’s next phase of growth while contributing to create jobs, digitizing supply chains and distributions channels and mobilizing private investment” said Farid Fezoua, Director for Equity, Funds, and Venture Capital at the International Finance Corporation, World Bank Group.

 

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