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Airfares Surge By 52% Over Forex, Jet-A1 Crisis

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According to the National Bureau of Statistics, the average airfare paid by passengers on specified routes for a single journey has increased by 52 percent in the past 12 months.

In a new report titled, “Transport Fare Watch (April 2022),” the NBS said airfares recorded a 19 percent increase when gauged on a month-on-month basis.

On state profile analysis, Taraba recorded the highest air transport charges (for specified routes single journey) in April 2022 with N65,000.00, followed by Kogi with N64,258.91, while Kano recorded the least with N50,000.00.

Analysis by zone also showed that the North-Central recorded the highest airfare in April 2022 with N57,552.54, followed by the North-East with N56,800.16, while the South-East had the least with N53,402.58.

The significant hike in airfares, according to findings, is not unconnected to the recent challenges faced by local airlines, ranging from energy price hikes to lack of access to foreign exchange.

It was earlier reported how domestic airline operators threatened to ground their operations due to a substantial increase in the price of Jet A1, also called aviation fuel.

Speaking in an interview with our correspondent, an official in the Corporate Affairs Department of the Airline Operators of Nigeria, the umbrella body for local carriers, Mr. Ewos Iroro, described the factors behind the increase in airfares as obvious concerns that the operators had clamored about over the past few months.

According to him, the onus of relieving the sector of the bottlenecks affecting the operations of the airlines is a responsibility the government should take more seriously.

He said, “We know what has been happening in the sector in the last few months. The price of jet fuel has gone up. There are so many factors. All the factors are already out there. Airlines don’t determine most of the factors. Airlines are also operating in a system.”

The Chief Executive Officer, TopBrass Aviation, Captain Roland Iyayi, also blamed the inability of the government to solve certain fundamental challenges as the reason behind the spike in airfares in the last year.

According to him, energy costs constitute about 50 percent of airlines operating costs. This, he said, would invariably give rise to a corresponding hike in airfares.

Iyayi said, “I think the solution is actually in the hands of the government. If for instance, our refineries were working, the cost of fuel would have been lower than what it is today. Fuel, for airlines, constitutes about 50 percent of their direct operating cost. So, if you take that fuel increase from N150 to about N700; that’s about a 400 percent increase, but nobody is talking about that. If fuel increased by 400 percent and airfares increased by 52%, and fuel comprises 50 percent of the direct operating cost of an airline’s cost of production, then there is something very significantly wrong. I would assume that based on those numbers, airlines may not even be breaking even.”

Also speaking, an economic expert at the Pan-Atlantic University, Associate Professor Emeka Osuji described the hike as inevitable considering recent events in the aviation sector and the attendant economic consequences of these events.

He said, “Aviation fuel has gone up. I don’t blame the airlines. When aviation fuel goes up as it has done, you have to expect an increase. The politicians have taken all the dollars for their political activities. Everything about an aircraft is dollarised, now the dollar has gone up to N600. When that happens you don’t need anybody to tell you what it will give rise to.”

Osuji also said the economy had been badly managed and decried Nigeria’s continued inability to refine fuel for local consumption.

According to him, much of the energy crisis that has led to increased cost of production would have been tackled if the government had been alive to its responsibilities.

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Federal Government Declares Public Holiday For Christmas, New Year Celebrations

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The federal government has declared December 25-26, and January 1, 2025, as public holidays.

The public holidays are to commemorate the “Christmas,” “Boxing Day,” and “New Year’s Day” celebrations, respectively.

Olubunmi Tunji-Ojo, the minister of interior, announced the dates in a statement signed by Magdalene Ajani, the ministry’s permanent secretary.

He extended his greetings to Nigerians for the holidays and encouraged them to use the festive period to reflect on the values of “love,” “peace,” and “unity” that the season signifies.

He further emphasized that the yuletide is a time to foster harmony and strengthen bonds across families and communities.

“The Christmas season is a good moment for both spiritual reflection and national renewal. As we celebrate the birth of Jesus, the Prince of Peace, let us demonstrate kindness and extend goodwill to one another, irrespective of our differences,” the statement reads.

The minister also urged Nigerians to remain committed to the peace, unity, and progress of the nation.

He assured citizens of the federal government’s commitment to peace, security, and prosperity across the nation.

Tunji-Ojo added that the “Renewed Hope Agenda” of the President Bola Tinubu administration will usher in a prosperous economy that will be the envy of the world.

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Tinubu’s 50% Transport Reduction Scheme May Begin Tuesday

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The proposed 50 percent interstate transport fare price slash by the Federal Government, initially planned to commence on December 20, 2024, may now begin on December 24.

The slash is aimed at alleviating high transport costs during the Yuletide season.

Recall that the Federal Government, through the Ministry of Transportation, announced last Thursday that it had reached an agreement with stakeholders in the road transport sector to support Nigerians who will be travelling during the holiday season.

The government stated that it would cover 50 percent of the transport fare for travelers, alongside the commencement of free rail transportation for citizens on December 20, 2024.

This initiative, according to the Director of Press and Public Relations, Federal Ministry of Transportation, Olujimi Oyetomi, was part of President Bola Tinubu’s broader effort to provide transportation palliatives for Nigerians celebrating Christmas and New Year.

Oyetomi said that the agreement was signed between the Federal Government and key transport stakeholders, including the National Union of Road Transport Workers, the Road Transport Employers Association of Nigeria, and the Association of Luxurious Bus Owners of Nigeria, among others.

The ministry’s spokesperson explained that under the arrangement, passengers traveling from Abuja and Lagos (Oshodi) to various destinations across the country would pay only half of the usual fare.

A senior official in the transportation ministry, speaking on condition of anonymity, stated that while the rail initiative was set to transport 340,000 Nigerians during and after the Yuletide, details about the road transport component remained unclear.

“The minister will most likely unveil the scheme tomorrow (Monday) at the Eagles Square, and detailed information will be provided accordingly.

“We were supposed to commence on the (December) 20th, but due to some imperfections, it has been delayed. By God’s grace, it should start on Tuesday. However, the MoU and other agreements have been adequately signed.”

When contacted, the Chief Executive Officer of God is Good Motors, Enahoro Ekhae, confirmed signing the MoU but noted that the scheme had not yet started.

“Yes, we indeed signed an MoU, but we are yet to begin the implementation,” he said.

When asked about the delay, he responded, “It is the government that can explain that. We, as GIGM, will begin once we reach an agreement with the government to start.”

Meanwhile, it was learned from the Federal Ministry of Finance on Sunday that the initiative was delayed due to funding challenges.

The programme, which was expected to begin on December 20, has been stalled as transport unions await payments promised under the scheme.

Sources at the finance ministry told one of our correspondents that efforts to secure funding were ongoing, with stakeholders hopeful for a resolution in the coming days.

The initiative, which aims to provide subsidized transportation through partnerships with transport unions, was supposed to start at Eagle Square in Abuja but failed to take off.

“We have signed the MoU, but the minister believes that the transport unions should receive their payments before starting, so that we can maintain accurate records,” a source at the finance ministry explained.

“The transportation minister has been working with the finance ministry to secure the funds, including those for the rail component.”

While the rail part of the initiative continues because it is managed solely by the Federal Government, road transport remains stalled due to the lack of government-owned buses.

“The route involves transportation unions. The Federal Government does not have buses to operate the system. We want the transport unions to take ownership and run the program. They are expected to account for the money given to them, as we have monitoring mechanisms in place,” the source clarified.

Despite ongoing efforts to secure funds, the process has been slow. “He (the minister) has been going to finance. He couldn’t secure the funds. That’s why we couldn’t start.”

The plan includes a payment of 50 percent of the agreed average fare to transport unions for each route, covering road trips from Abuja to state capitals and from Oshodi in Lagos to other destinations.

“The government is supposed to pay the transport unions 50 percent of the average fare we’ve already agreed upon for each route,” the source added.

However, no funds have been disbursed yet, leaving transport unions unable to mobilize. “All transport unions with whom we signed the MoU will have to bring their vehicles to Eagle Square. But no one has received any money yet. Therefore, everyone has been asked to remain on hold.”

The source expressed hope that the issue would be resolved soon. “I believe that as early as tomorrow (Monday) morning, the minister will press the Minister of Finance. The finance minister will understand the urgency, as it’s a directive from the President, and they will find a way to release the funds. Then, the process will begin.”

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Inside Ogun: Wife Flees After Setting Cop Husband Ablaze During Dispute In Iperu

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A wife, Sarah Ayinde, is on the run after setting her husband, a special constable with the Ogun State Police Command, Abidemi Ayinde, ablaze in the Iperu area of the state.

A source, speaking anonymously, said that the incident occurred on December 12 after the couple had engaged in a minor dispute.

The source, on Sunday, disclosed that the dispute escalated, and the wife resorted to setting the cop on fire in a retaliatory attempt.

The source said, “There is an incident in Iperu. A police constabulary was set on fire by his wife. They argued, and the wife set him on fire. He is currently hospitalised.”

Confirming the incident in a telephone conversation (with The Punch), the spokesperson for the state Police Command, Omolola Odutola, on Sunday, said that the victim was hospitalised following the incident.

She narrated that efforts were underway to apprehend the wife.

“On December 12, 2024, at approximately 10:00 a.m., an attempted murder incident occurred in Iperu. Reports indicate that at No. 20 Igboore Street, Abidemi Ayinde, a male special constable with the police division, was set on fire by his wife, Sarah Ayinde, following a minor dispute.

“The victim was quickly taken to the Bolawatife Hospital for medical attention and is currently in a stable condition.

“The suspect, Sarah Ayinde, remains at large, and efforts are underway to apprehend her. The division’s crime branch is conducting further investigations into the matter,” Odutola said.

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