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Nigeria Air: Three Years After Unveiling, FG Yet To Establish National Carrier

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The Federal Government is still holding discussions for the establishment of a national carrier for Nigeria, three years after it unveiled the branding and livery for the proposed airline, named Nigeria Air.

Officials of the Federal Ministry of Aviation stated on Friday that plans to get the airline up and running were still in place, as the Minister of Aviation, Hadi Sirika, tweeted last Thursday that discussions for the project were held at the United States Embassy in Abuja.

This came as Nigerians condemned the continued delay on the part of the Federal Government in establishing the national airline.

In July 2018, the Federal Government unveiled the branding and livery for the new airline, Nigeria Air, and stated that the carrier would be inaugurated at the end of that year.

Sirika unveiled the carrier at a press conference during the Farnborough Air Show in London that year.

“I am very pleased to tell you that we are finally on track to launching a new national flag carrier for our country, Nigeria Air. We are all fully committed to fulfilling the campaign promise made by our President, Muhammadu Buhari, in 2015. We are aiming to launch Nigeria Air by the end of this year,” the minister had stated.

He had stated that the government had obtained the Certificate of Compliance from the Nigerian Infrastructure Concession Regulatory Commission and would go into investor search.

“I am confident that we will have a well-run national flag carrier that is a global player, compliant with international safety standards and one which has the customer at its heart,” the minister had stated.

But about three years down the line, no national carrier has been inaugurated, as against the initial plan to inaugurate the airline before the end of 2018.

Rather, the minister tweeted that discussions were still ongoing for the proposed airline.

Speaking via his official Twitter handle on Thursday, the minister said, “Was invited to break my fast at the USA (United States of America) Embassy.

“We took the opportunity to discuss investments and opportunities in the aviation sector, including national carrier. The partnership looks promising. USA is the only country we have open skies with. Thanks, Ambassador Mary and the team.”

Also, senior officials of the aviation ministry stated on Friday that the government had not jettisoned the plan to float a national carrier for the country.

“The plan is still in place and the processes for the establishment are still being pursued despite the delay since it was unveiled,” an official who pleaded not to be named, as he was not authorized to speak on the matter, stated.

The source added, “The government has been reaching out to investors and concerned stakeholders on this project and the minister is still passionate about it.”

But Nigerians took to Twitter to express their disappointments over the delay that had greeted the commencement of the project since it was unveiled about three years ago.

Replying to the minister’s tweet, a Twitter user, Aliyu Abubakar, said, “You’ve been talking about this national carrier from your first ministerial debate during the 8th Assembly. I just pray it will be a dream come true for Nigerians before you vacate your office.”

But another user, Lioness, replied, “A dead dream.”

Also, Olayimika-Mobalarinwa tweeted in pidgin, as he said, “Imagine, this country don really suffer o. Old man still talking about national carrier. How many years remain for una to leave us alone sef.”

Yusuf Bello Saleh wondered if the airline would be established, as he said, “Sir when (will) our national carrier (be ready)? The one that Mr.@MBuhari launched some years back in London.”

Also, another Twitter user, I.am.mahmoud, told the minister that the current government had limited time to actualize the national carrier dream.

“Two years to go without a national carrier,” he stated.

Commenting on the development, an aviation security consultant and Secretary of the Aviation Safety Round Table Initiative, Group Capt. John Ojikutu, said concerns about the prolonged delay in the establishment of a national carrier were justifiable.

He said, “The issue of national carrier started even before the current minister came into office. It actually started with Nigerian Airways which we virtually killed. We killed it because we turned the national carrier into a government carrier.

“So I’ve been saying that the way the minister is handling this now might turn the national carrier into a government carrier again and it will die the way Nigerian Airways died. It can even die prematurely.

“I advised the minister that for you to set up a national carrier fast enough, everybody’s hands must be in it. We need a technical partner. Emirates is being run by a British, the CEO is a Briton. We need a technical partner and technical investor.”

Ojikutu stressed that to halt the prolonged delay, the technical partner and technical investor should not have more than 40 percent stake in the proposed airline.

“Then Nigerian creditors, those who are credit-worthy and can manage money properly such as Dangote, Soludo and others who know how to manage money, should put in their money in it,” he stated.

Ojukutu added, “Nigerian investors who are credible with money can take 10 percent, while the federal and state governments can take 10 percent and the remaining should be given to the Nigerian public.

“That is when you will have a true national carrier and the government will not be able to handle it the way it managed the defunct Nigerian Airways. If this is done, within three to six months the national carrier will be established and this delay will cease.”

But an aviation sector analyst and member of the renowned Aviation Round Table, Olumide Ohunayo, kicked against the continued push by the government to establish a national carrier.

He said, “I’m trying to understand why the government should proceed with the national carrier project. If you look at what has happened during this period of COVID-19, we have had more applications and three or four airlines are already coming on board.

“And about 25 others are processing their applications. Again, AMCON, an agency of government that is handling Aero and Arik, has decided to start a new carrier. Probably they are going to shut the two for the new carrier to have some life.”

He added, “So if a government agency is having a carrier, why will the Federal Government again have another carrier? I don’t think we should proceed with it. The Federal Executive Council in their wisdom had in the past asked that everything should be put on hold.”

He expressed concern that billions of naira were being mapped out for an airline that had not yet come into existence, whereas many carriers currently in operation were struggling to survive.

Ohunayo urged the government to channel the funds being mapped out for the national carrier to improve infrastructure at airports.

 

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Federal Government To Grant Mining Licenses To Only Companies That Process Locally

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Nigeria will only grant new mining licences to companies that present a plan on how minerals would be processed locally, under new guidelines being developed, a government spokesperson confirmed on Thursday.

This is a departure from Nigeria’s long-standing practice of exporting raw commodities, as governments around Africa work to increase the value derived from their substantial mineral reserves.

To spur investment, Nigeria will offer investors incentives including tax waivers for importing mining equipment, make it easier to secure electricity generation licences, allow full repatriation of profits and boost security, Segun Tomori, a spokesperson for Nigeria’s minister of solid minerals development said.

“In exchange, we have to review their plans for setting up a plant and how they would add value to the Nigerian economy,” Tomori said. He did not say when the guidelines would be finalised or come into effect.

However, last week the minister of solid minerals development, Dele Alake, said it was now government policy to make value addition a condition for obtaining licences so as to create jobs and help local communities.

Alake, who also chairs an African mining strategy group comprising mining ministers from Uganda, Democratic Republic of Congo, Sierra Leone, Somalia, South Sudan, Botswana, Zambia and Namibia, is pushing for a continent-wide effort to get maximum local benefit from mineral exploration.

Nigeria, Africa’s top energy producer, has struggled to extract value from its vast mineral resources due to poor incentives and neglect. The underdeveloped mining sector contributes less than 1% of the country’s gross domestic product.

Last year Nigeria exported mostly tin ore and concentrates worth about 137.59 billion naira ($108.34 million), mainly to China and Malaysia, according to the country’s statistics bureau.

The government aims to drive more investment into the sector by issuing more licenses. It has set up a state-owned solid minerals corporation offering investors a 75% stake and established a special security unit tasked with fighting illegal miners.

The government is also trying to regulate artisanal miners, who dominate the sector, by grouping them into cooperatives.

Foreign mining companies operating in Nigeria include Canada-based Thor Explorations which is involved in gold exploration, Chinese-owned Xiang Hui International Mining which partnered with a local company to process gold, and Indian-owned African Natural Resources and Mines, which is building a $600m iron ore processing plant in northern Nigeria.

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Governor Babajide Sanwo-Olu Felicitates President Tinubu At 72

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Governor Babajide Sanwo-Olu, has congratulated President Bola Ahmed Tinubu on his 72nd birthday, describing him as a brave, bold, and passionate leader who is dedicated to the advancement, growth, and development of Nigeria.

He said that President Tinubu’s contribution to the nation’s growth is cause for celebration, citing the President’s unparalleled bravery, integrity, honesty, and patriotism in his efforts to steer Nigeria’s ship in the correct path since he into office on May 29, 2023.

Governor Sanwo-Olu, in a statement issued on Thursday by his Special Adviser, Media and Publicity, Mr. Gboyega Akosile, said President Tinubu has provided honest and transparent leadership in Nigeria by taking bold decisions to address challenges militating against the prosperity of Nigeria and Nigerians.

Sanwo-Olu further described the President as a visionary and master strategist whose democratic credentials are scholarly materials for study in political economy.

He said: “On behalf of my family, the government, the people of Lagos State,  members of the Governance Advisory Council (GAC), leaders, and members of the ruling All Progressives Congress (APC) in Lagos State, I congratulate our leader, President Bola Tinubu, on the occasion of his 72nd birthday.

“President Tinubu has sacrificed the greater part of his life in the service of our dear State and Nigeria. He contributed to the enthronement of democracy and good governance, serving first as a Senator in the aborted third republic and later as a pro-democracy activist, working tirelessly as a member of the National Democratic Coalition (NADECO) to struggle for the de-annulment of the June 12, 1993 presidential election.

“President Tinubu’s financial wizardry and economic intellect, which he put to good use as the Governor of Lagos State, have taken our dear state to a greater height. Today, Lagos is the pride of Nigeria, occupying an enviable position as the fifth largest economy in Africa.

“President Tinubu has made positive impacts in the country through the Renewed Hope agenda of his administration. His unblemished service and track record of impressive achievements in public office have made him a role model for many Nigerians.

“As President Tinubu celebrates his 72nd birthday, it is our prayer that God will grant him more prosperous years in good health and wisdom as he continues to serve our dear nation.”

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JUST IN: CBN Increases Banks Capital Base To N500bn, N200bn For National Commercial Banks

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The capital basis for commercial banks with international permission has been raised to N500 billion by the Central Bank of Nigeria (CBN).

The policy change was confirmed by Mrs. Hakama Sidi Ali, CBN’s acting director of corporate communications. in a declaration.

She added that commercial banks with regional authorization are expected to reach a capital floor of N50 billion, while those with national authority must meet a ceiling of N200 billion.

Announced on Thursday, March 28, 2024, this comprehensive financial reform requires significant increases in banks’ minimum capital bases, which vary depending on the size of the bank.

The latest policy directive specifies that commercial banks with international authorization are now required to shore up their capital base to N500 billion.

In a bid to tighten the financial fabric, the CBN has not overlooked merchant banks, which are now subject to a N50 billion minimum capital requirement.

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