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We Airlifted N1.219bn To Fayose For 2014 Election — Obanikoro Tells Court

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Former minister of state for defence, Musiliu Obanikoro,  has narrated how N1.219 billion cash was airlifted to Ayodele Fayose, former Ekiti state governor, in 2014.

Giving evidence as a witness of the Economic and Financial Crimes Commission (EFCC) on Wednesday, Obanikoro told the court that he received the money from Sambo Dasuki, former national security adviser (NSA), as directed by Fayose.

“I was a minister under Jonathan’s administration in 2014. Sometime in 2014, we were going to have an election in Ekiti State. I was saddled with the responsibility of coordinating the activities in the election,” Obanikoro said.

“Some days before the election, I got a call from governor Fayose asking me if I received any message for him from ONSA, I can recall that prior to that, we had some activities among which was fundraising for the purpose of that election.

“When Mr. Fayose called, I told him I would call him later. I had a phone conversation with the NSA and was told he would get back to me. After, he got back to me that N2.2 billion was paid into the account of Sylvan Mcnamara Ltd.”

The former minister said he did not know the source of the funds, adding that “only the NSA can explain the source of the fund”.

“I handed over the N1.219 million cash to Agbele for onward delivery to Fayose. I did not take any money or N19 million, contrary to a  publication by a Lagos-based online platform,” he said.

When asked about his relationship with Sylvan Mcnamara Ltd, the former minister stated that “the account was created to deal with the issue of Boko Haram in Lagos”.

“The account was created by Taiwo Kareem and was used for the purpose of disbursing funds for election,” he added.

“I put a call through to let Fayose know that the money had been paid.

“Diamond Bank had said it did not have the capacity to make the funds available, so we opted to airlift the funds.  The funds were airlifted from Lagos in two tranches, the volume was much.

“Myself, my ADC and my security orderly were there, including a top aide of  Fayose to meet Mr. Agbele, the bank manager. I instructed my orderly to escort Mr Agbele and ensure the safe delivery of the money.

“We airlifted the funds from Lagos in two tranches because the aircraft could not accommodate the funds. We used two aircraft and I was in one of the aircraft.”

Nnamdi Dimgba, the presiding judge, adjourned the matter to February 27, 2024 for continuation of trial.

Fayose is being prosecuted by the EFCC, alongside his firm, Spotless Investment Limited, following their alleged involvement in N6.9 billion money laundering.

BIG STORY

Forex Crisis: FG Blows Hot, Threatens Sanctions As Foreign Airlines Stick To High Fares

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The Federal Government has threatened to sanction foreign airlines that fail to comply with the directive to release low inventory tickets within weeks.

The decision was delivered at a meeting held by the Nigerian Civil Aviation Authority last week in Abuja with airline operators, the NCAA, international airlines, and the National Association of Nigeria Travel Agencies.

At the meeting, the international airlines promised to provide low inventory tickets, which are much more inexpensive for Nigeria’s middle class, in order to improve transparency in the air ticketing operations.

This came when the Federal Government released a portion of the $700 million in embezzled airline ticket proceeds to overseas carriers.

However, findings by Press showed that not all the foreign airlines had complied with the directive.

The Director of Public Affairs and Consumer Protection, NCAA, Michael Achimugu, said in an exclusive with Press that defaulting airlines risked sanctions.

The NCAA public affairs director stated in an interview with one of our correspondents on Saturday, “The meeting between the NCAA and the foreign airlines had NANTA present.

“They confirmed the opening of those low inventory tickets. During our discussions with the airlines, we allowed them into the meeting one after the other and some claimed that in their agencies, low inventories were opened.

“We had NANTA confirm this in the meeting and discovered that some of the airlines were not being truthful about it. Consequently, we instructed them to open those low-inventory tickets.

“A majority of them are reported to have complied by opening low-inventory tickets. For those that are yet to do so, we have given them a week or thereabout. I will need to check with the chairman to confirm the exact number of weeks given to them to comply.

“Within the scope of the NCAA, there will be sanctions applicable to airlines that do not comply with these directives. We made that very clear. However, I need to confirm the deadline to comply with the committee.”

Investigations by Press showed that airlines had initiated the release of low-inventory tickets, however, there are concerns as certain carriers have yet to offer their lowest inventory tickets.

Airline operators, who spoke to Press, confirmed that the NCAA directive had not fully expanded the availability of economy-class tickets.

A reliable source in the industry told our correspondent that some of the airline operators were yet to fully open up the lowest inventory tickets, which cater significantly to the Nigerian middle class.

The source claimed that some of the operators withheld the lowest inventory tickets in a move to compel Nigerians to utilise their dollar cards to purchase air tickets.

“Some airlines did a partial opening, meaning that they didn’t release all of the low-inventory tickets. For example, if they have 10 economy class tickets with different fares, they will release around five,” the source revealed.

The Director-General of the NCAA, Chris Najomo, had called out Air France for non-compliance with the directive.

In response to this, Najomo set up a 10-member committee chaired by the Director of Special Duties at the NCAA, Horatius Egua.

The committee’s primary task is to oversee the full compliance by foreign airlines with the government directive regarding the unblocking of low-inventory tickets.

The committee is expected to propose suitable pricing strategies for tickets in Nigeria compared to other markets in the West African sub-region.

The President of the Association of Foreign Airlines and Representatives in Nigeria, Kingsley Nwokoma, confirmed to Press that some airlines had chosen to open their low-inventory tickets, while others were yet to follow suit.

The AFARN president believes this move will benefit everyone, as airline operators navigate market dynamics and competition by strategising accordingly.

Nwokoma stated that making decisions for airlines was challenging due to numerous variables that needed consideration.

According to him, the decisions by the airlines to open up inventory involve evaluating both commercial and technical aspects to determine the most suitable course of action.

The AFARN president explained that the increase in ticket prices was attributed to the high exchange rate and the challenge of accessing trapped funds.

He added that airlines were keen to recover these funds.

Nwokoma emphasized the ongoing conversations between the foreign airlines and the NCAA, shedding light on the complexities involved.

“The foreign airlines are having a conversation with the NCAA. So I’m sure as soon as that is sorted, they will look at all the dynamics,” he said.

Nwokoma added that it was important to resolve regulatory matters before proceeding with ticket releases, underscoring the need for alignment between industry stakeholders and regulatory bodies.

Regarding the timeline for the release of low-inventory tickets, he expressed uncertainty, noting, “It is ongoing; we can’t give any timeframe as to when the release of low-inventory tickets will start.”

Price checks by our correspondents revealed significant discrepancies in ticket prices. While some tickets are sold at over N1m, others exceed N3m.

A round-trip economy class ticket from Lagos to London with Air France costs N2,482,138, while for Lufthansa, it is priced at N1,966,165. Qatar Airways offers the same ticket for N2,016,824, and KLM prices it at N2,448,740.

For the Lagos to New York route on Qatar Airways, the cost is N2,982,049. Meanwhile, KLM charges N3,158,314; Air France prices it at N3,148,308; and United Airlines lists it at N3,193,185. Delta Air Lines offers the ticket for N3,310,097.

The Lagos to London flight with Kenya Airways attracts N1,258,857. Asky Airlines prices it at N1,572,617, while Qatar Airways charges N1,639,602.

From Lagos to Canada, Delta Air Lines economy tickets cost N1,982,017. United Airlines charges N3,188,672; Qatar Airways, N2,511,041; and Air France, N2,660,376.

  • Exchange Rate Crisis

Nigerian passengers are grappling with challenges stemming from fluctuating exchange rates, resulting in increased travel costs and unpredictability.

The surge in Jet A1 fuel price further compounds the issue, with airfares across various airlines experiencing an increase in recent weeks.

The airlines have voiced their concerns about the detrimental impact of these factors on their operations, urging the government to intervene to avert the potential collapse of some of the carriers.

The President of the National Association of Nigerian Travel Agencies, Susan Akporiaye, told Press that the non-release of the low-inventory tickets was due to the problem of high foreign exchange rates.

Akporiaye said there was no need for the airlines to block the lower inventory tickets anymore as the prices were becoming exorbitant.

She stated, “Before the release of inventory, the economy-class ticket was going for N6m; that’s why you can see tickets priced at less than N2m. We can obtain fares as cheap as we used to before because of the exchange rate when it was $1/N400.

“Due to the reopening of the inventory, passengers can still purchase tickets at the rate of N1.6m and N1.8m, as opposed to what we used to have before.”

An agent at Travel and Tours Limited, Maureen Chimaobi, expressed the hope that all airlines would comply with Nigerian authorities by opening up their low-inventory tickets.

She told Press that the tickets might not always be available on airlines’ websites, with some airlines selling them to IATA agents at a lower cost.

Chimaobi stated that occasionally, these tickets can be found on the airline’s website.

She added that despite this availability, the prices remained high due to the exchange rate.

Another travel agent, Effiom Martins, said there were persistent high costs of airfares.

“As of yesterday (Friday), ticket prices remained exorbitant, even doubling in some cases, compared to just two weeks ago,” he said.

Martins emphasized that exchange rates played a significant role in determining ticket prices, but lamented the lack of immediate action by airlines following the directive by the NCAA.

He expressed frustration over the opacity of airline policies, noting the absence of clear communication regarding plans to lower fares.

“The foreign airlines won’t even give some of us any information on plans to reduce airfares. It will just be shown on their websites. Yesterday’s airfares and today’s fares are still the same,” Martins added.

An agent with Untamed Travels and Tours, Adediran Adewale, disputed claims of inventory release by the international airlines, labelling it “a capital lie.”

He pointed out pricing disparities, particularly with airlines like British Airways selling tickets in dollars for passengers in Nigeria.

Adewale criticised Turkish Airlines for selective inventory release and the cessation of commission for agents, which he noted was adversely affecting travel businesses. He emphasized the unequal treatment faced by Nigerian travellers, citing restrictive baggage allowances and pricing schemes.

A Travel Agent at T & T Concierge Services, Juliet Abah, acknowledged partial inventory releases by some airlines like Lufthansa and Virgin Air but lamented the lack of action from others such as KLM and Air France.

“Not all but some airlines have released cheaper classes of seats. The likes of Lufthansa, Virgin Air, KLM and Air France have yet to do the same,” Abah stated.

She highlighted the intricacies of fare determination, citing fluctuations in IATA dollar rates and disparities between Nigerian and international markets.

One of the biggest tasks currently before the Minister of Aviation and Aerospace Development, Festus Keyamo, is to ensure that more airlines do not suspend their operations from the Nigerian market.

Recently, the Chairman of United Nigeria Airlines, Obiora Okonkwo, expressed worry that operators were on the brink of collapse as operating costs continued to worsen, especially due to the high cost of aviation fuel, which is currently sold at N1,300 per litre.

Okonkwo stated, “A Nigerian airline may meet their terms and all the standard criteria, but the aircraft owners consider country risk above other factors. Country risk supersedes everything and lessors have their obligations. So, there is nothing personal.

“Some airlines deposited money with the Central Bank of Nigeria, but they cannot provide us the needed dollars.

“We are not only faced with the problem of scarcity of dollars; even the aviation ecosystem is feeling the heat. Handling companies have increased the cost of their services, airports have increased their charges and those that service the aircraft have also increased the cost of their services.

“The funds for these payments are coming from the passengers who are already exhausted financially.”

Earlier, the Chief Executive Officer of Centurion Security Limited, Captain John Ojikutu, said aviation fuel accounted for approximately 60 per cent of airlines’ operational costs.

He highlighted the need for Nigeria to resume producing aviation fuel, as it did in the past, to alleviate the ongoing impact on both operators and passengers.

“Fuel plays a crucial role in commercial aviation. Could you provide information on the fuel prices in 1999 and the current rates? In the mid-1990s, fuel refining occurred in Nigeria, but for over two decades, we’ve been importing fuel, which is now impacting ticket prices,” Ojikutu stated.

He said it was challenging for airlines to continue to pay in dollars while they collect naira from travellers.

The Federal Government holds the highest amount of airline-trapped funds in the world, with over 27 foreign carriers operating in the country, according to the International Air Transport Association.

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President Tinubu Signs Multi-Sectoral Investment Agreements With Qatar, Says “Nigerian Youths Are Reliable” [PHOTOS]

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  • Finance Minister Edun To Head Qatar Investment Implementation

 

Nigeria’s President, Asiwaju Bola Ahmed Tinubu, has signed an agreement with Tamim Bin Hamad Al-Thani, Emir of Qatar, to improve cooperation in seven sectors of the economy.

The sectors include education, enterprise development, investment promotion, youth empowerment, mining, tourism, and sports.

According to a statement by Ajuri Ngelale, presidential aide on media and publicity, the two countries entered the agreement on Sunday in Doha.

Before the signing ceremony, Tinubu was said to have assured his host of Nigeria’s preparedness to welcome investors into the country, adding that the ongoing reforms favour innovation, return on investments, and multiculturalism.

“Our greatest strength is our people. Our strength lies in the capacity of Nigerian youths,” Tinubu said.

“They have energy, talent, and self-belief. They are quality partners for the Qatari industry. They are educated and reliable, and they are proactively seeking to add value wherever they are.

“A few cannot give a bad name to the many. Nigerian youths are ready to be unleashed for the mutual benefit of both nations.

“We have seen clearly the rapid pace and thorough quality of Qatar’s development process. It is impossible not to be moved by what you have accomplished. The leadership in the country has proven its mettle, and we are here to gain deeper insight.

“There is nowhere in the world where you will find return on investment at the level of what you will see in Nigeria. A massive market of over 200 million skilled Nigerians, always industrious and ready to work.

“We face some short-term turbulence at the moment, but we have a government today that reflects the dynamism and talent of the Nigerian people.

“We are implementing the right solutions. This team works collaboratively with each other and our partners. Nigeria is ready for serious business.”

On his part, Al Thani, emphasised that Qatar is open to Tinubu’s investment push.

He also recalled that he travelled to Nigeria in 2019 due to his belief that Nigeria is an important and strategic ally on its own and within the context of its role in regional affairs.

“I have no doubt about the great capacity of the Nigerian people. Everywhere in the world, they are known for their brilliance and hard work,” he said.

“We only need to ensure that this is happening inside of Nigeria rather than outside. The investments we have made around the world have been very fruitful.

“This is because we take our time and study opportunities before we invest in the commonwealth of our people. It is not my money. The money we invest belongs to the future generations of Qatar.

“Mr. President, I am very encouraged by your actions and your passion to create new opportunities. We are very open to this, and follow-up is everything at this point.

“The will is there for both of us, but we must follow up. I will send a team of officials to Nigeria after Ramadan, and we will advance discussions on what some of the actionable investment opportunities are.”

According to the statement, Tinubu named Wale Edun, minister of finance and coordinating minister of the economy, as the leader of the government team that will interface with Qatari authorities on investment identification and implementation moving forward.

Ngelale said the agreements signed are; cooperation agreement in the field of education; regulation of employment of workers with the government of Qatar; establishment of a joint business council (JBC) between the Qatar Chamber of Commerce and Industry and the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA); a cooperation agreement in the field of youths and sports.

Other agreements include: cooperation in the field of tourism and business events, and a memorandum of understanding combating illicit trade in narcotic drugs and psychotropic substances.

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Economic Hardship: Express Your Grievances In A Responsible And Mature Manner — VP Shettima To Nigerians

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Nigeria’s Vice President, Alhaji Kashim Shettima, says the federal government expects Nigerians to express their grievances over the current economic crisis in a responsible and mature way.

Speaking on Saturday at the University of Lagos (UNILAG) Muslim Alumni’s 29th pre-Ramadan lecture, Shettima said that if the alternatives had been feasible, the government could have chosen a simpler course of action instead of its current course.

The event was themed “Economic Reforms for Nigeria: Challenges and Prospects for the Future”.

Shettima, who was presented by Hakeem Baba-Ahmed, his special adviser on political matters, said all the options before the President Bola Tinubu-led administration are difficult.

He said the government is left with no choice than to adopt certain policies which are “more telling on the poor”.

Several states, including Lagos, Imo, Kaduna and Oyo have, in the past weeks, staged protests to express their reservations over the hunger and high cost of living in the country.

The Nigeria Labour Congress (NLC) also staged a nationwide mass protest on February 27 over the economic hardship being faced by Nigerians.

“The consequences of our past are the stark realities we face today, such as rising cost of living and pessimism over our prospect to turn round our economy in the direction of growth and inclusive development,” Shettima said.

“Yet, my brothers and sisters, we do not have the choice of continuing in the direction that brought us where we are today. We have to fix this country, and failure to do this is not an option. All the options we have are difficult and challenging, and they are, without a doubt, more telling on the poor. If there are easier and reliable alternatives to the policy choices we have adopted, we wold have adopted them.

“Our administration does not plan to make lives of Nigerians more difficult. Nor do we intend to deceive fellow citizens that the change in direction and the expected outcome can be achieved without pain or sacrifices.

“Fellow alumni, I appeal to you to help make space for our administration to achieve the goal of turning our nation around. As products of a distinguished institution, we have learnt that progress is only possible if it is informed by criticism and critical scrutiny. We expect that Nigerians should express their feelings over our circumstances in a responsible and mature manner.”

The vice president further said that the federal government is aware that the forthcoming Ramadan “will come with severe challenges for most Nigerians”.

He added that as “deeply religious people”, Nigerians believe in the powers of prayer and faith that God will ease the hardship.

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