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BUSINESS: Aviation Sector’s GDP Crashes By 61% Amid Crisis

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The foreign exchange and fuel crises that have plagued the aviation sector seem to have led to a decline in the sector’s contribution to the Gross Domestic Product by 61.47 percent.

The nominal GDP output of the sector crashed from N84.73bn in the first quarter of 2022 to N32.65bn by the second quarter of the year, according to the latest Q2 2022 GDP data from the National Bureau of Statistics.

There have been serious concerns over millions of dollars earned by foreign airlines operating in the country, which they could not repatriate due to foreign scarcity.

There have also been concerns about the rising cost of aviation fuel, which has made the cost of operations high for domestic airline operators.

Domestic and international airlines operating in the country have been raising airfares and reducing flights due to these crises.

The Chairman, United Nigeria Airlines, and spokesperson for Airline Operators of Nigeria, Prof. Obiora Okonkwo, in an interview (not with PorscheClassy), noted that domestic airlines had been struggling with high operating costs due to the hike in aviation fuel.

He also noted that the lack of adequate forex from the Central Bank of Nigeria had pushed airline operators to get forex from the black market at high costs.

Obiora said, “It is a big problem because 95 percent of the funds we need are sourced from the parallel market, which makes things very expensive. Sometimes, it is not even available.

“This cash, even when you have naira, is not available in US dollars, and then it affects your delivery time, further increases your aircraft-on-ground period and your operational efficiency. So, it is really a huge issue.”

The Chairman, of Air Peace, Allen Onyema, recently disclosed that over 70 airlines had gone into extinction in Nigeria in the past few years and three others currently in operation might collapse in the coming weeks.

He attributed the incessant collapse of airlines in Nigeria to the excessive charges confronting operators in the sector, among other concerns, adding that the major reason capable of crumbling the operations of airlines currently was the high cost of aviation fuel, popularly called Jet A1.

He added, “There are so many issues in the aviation industry. Issues like high taxes are making airlines unprofitable here.

“We pay excessive charges to the Nigerian Airspace Management Agency. Paying navigation charges is absurd for domestic operations. The mortality rate of airlines in Nigeria is alarming. Over 70 airlines have gone into extinction in the last few years.”

The International Air Transport Association, the Switzerland-based global body representing international airlines, had warned Nigeria that more carriers might suspend flights to Nigeria if the government failed to address the repatriation of the $464m trapped in Nigeria.

The British Airways stopped travel agents in Nigeria from selling their tickets amid the difficulty of foreign airlines to repatriate over $464m ticket sales proceeds to their respective home countries.

The development came barely a week after Middle East carrier, Emirates Airlines, announced the suspension of flights to Nigeria effective September 1, 2022. The Dubai-based carrier linked the development to the inability to repatriate $85m ticket sales proceeds.

However, the CBN announced on Friday that it had released $265m to airlines operating in the country, to settle outstanding ticket sales to check a brewing crisis in the country’s aviation sector.

A breakdown of the figure indicated that $230m was released as a special foreign exchange intervention while another $35m was released through the Retail SMIS auction.

BIG STORY

Tinubu To Hold First Presidential Media Chat Tonight

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President Bola Tinubu’s inaugural media chat is set to be broadcast on the Nigerian Television Authority (NTA) and the Federal Radio Corporation of Nigeria (FRCN).

In a statement, Bayo Onanuga, the presidential spokesperson, confirmed that the media chat will be aired at 9 p.m. today.

“The first Presidential Media Chat with President Bola Ahmed Tinubu will be broadcast at 9 p.m. on Monday, December 23, on the Nigerian Television Authority and Federal Radio Corporation of Nigeria,” the statement reads.

All television and radio stations are encouraged to tune in to the broadcast.

This marks Tinubu’s first media chat since he assumed office on May 29, 2023.

During the chat, Tinubu will respond to questions from a panel of journalists on national matters, including his economic policies, security, and other key issues.

The tradition of presidential media chats began during the tenure of former President Olusegun Obasanjo.

The practice was continued by the administrations of Umaru Musa Yar’Adua and Goodluck Jonathan.

However, under the administration of former President Muhammadu Buhari, the frequency of the presidential media chats declined.

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BIG STORY

IGP Didn’t Ask Nigerians To Beat Up Officers During Stop-And-Search — Police

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The Nigeria Police Force (NPF) has clarified that Kayode Egbetokun, the inspector-general of police, did not instruct Nigerians to pummel officers during stop-and-search operations.

In a statement on Monday, Muyiwa Adejobi, the force spokesperson, emphasized that Egbetokun has never endorsed violence against law enforcement agents.

Adejobi added that the blog post suggesting otherwise was entirely fabricated.

“The Nigeria Police Force wishes to address a viral fake news story that has emerged, claiming that Inspector-General of Police, IGP Kayode Adeolu Egbetokun, has instructed citizens to physically assault and throw stones at police officers who request to search their phones,” the statement reads.

“This claim is entirely false and has no basis in reality. The IGP has not issued any such directive encouraging violence against law enforcement officers.”

“Instead, he has called on citizens to report instances of police misconduct through appropriate channels.”

“This approach underscores the importance of accountability and maintaining the rule of law, rather than resorting to violent actions.”

“Members of the public are urged to make use of the following Police helplines & contacts to lay complaints whenever necessary: +2347056792065, +2349133333785, +2349133333786, @PoliceNG on X, @ngpolice on Facebook, and @nigeriapoliceforce on Instagram.”

“Citizens can also contact us by mail through; [email protected] and reach us through the police website at npf.gov.ng.”

Recently, Egbetokun instructed police officers to stop arbitrary arrests and cease searching the smartphones of Nigerians.

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BIG STORY

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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