Connect with us

Business

Foreign Airlines Demand Standard FX Rate

Published

on

Foreign Airlines
  • Foreign Airlines Demand Standard FX Rate

International carriers that operate to different destinations in the country have called on the federal government to give them standard exchange rate for the repatriation of revenues earned from ticket sales or they would be forced to leave Nigeria.

The Sales Manager of Emirates Airlines, Eghe Ekhator, issued the threat, why explaining the reasons why the airline decided to stop operations to the Federal Capital Territory (FCT) from October 22, 2016 during the on-going public hearing on how to revamp the aviation industry organised by the House Committee on Aviation.

Ekhator explained that due to the flunctuating value of the naira, when they sell ticket in the local currency, by the time they will exchange it to the dollar, it would lose its value. He said that the airlines have decided that the only way they could continue to operate in Nigeria would be for government to peg the naira for the airlines.

The House Committee Chairman on Aviation, Hon. Nkiruka Onyejeocha said the House was worried about the suspension of flights to Nigeria by foreign airlines and the number of domestic carriers that had gone under, noting that there are indications that more might stop operation.

Asked why Emirates decided to stop its operations to Abuja, Ekhator said: “The challenge we are facing is not unique to Emirates. The major point is forex. Another problem is the runway at the Abuja airport. The runway issues may be addressed but for now it is still a concern.

“Another problem is aviation fuel. There is no long- term assurance, which means that a flight can come and it won’t have fuel to depart. Emirates is losing money running into millions of dollars. The delay before we exchanged the ticket sales reduces its value because the naira is not pegged. For example, if you sell ticket for $1000 and collect its equivalence in naira by the time you exchange it you may have only $600 dollars because of the floating exchange rate. So the foreign airlines are losing millions of dollars this way. That is why some are considering pulling out their operations,” he said.

Onyejeocha however suggested that the government should introduce and implement policies that would enable airlines both foreign and local have profitable operation in Nigeria, noting that the foreign airlines are requesting for fixed rate of the naira for them so that they could exchange their money without losing any value.

At the public hearing, the Managing Director of Chanchangi Airlines, Trevor Worthington identified the challenges facing airlines in Nigeria and noted that the one of the major problem of the airlines is low aircraft utilisation due to poor infrastructure.

According to him, while aircraft in other parts of the world could operates for 22 hours, in Nigeria airlines hardly get up to 12 hours. He also noted that multi-taxation, high cost of aviation fuel and the fact that international operators are allowed to operate to many airports in the country, thereby discouraging code-share between foreign carriers and domestic operators.

Worthington urged the federal government to make a policy that foreign airlines should code-share with Nigeria airlines that meet their safety standard.

Speaking in the same vein, the Director of Engineering, Medview Airline, Lookman Animaseun said that many Nigerian airlines are now in the International Air Transport Association (IATA) registry as they have become certified after going through the stringent IATA Operational Safety Audit (IOSA), which qualifies them to code-share with any airline in the world.

Animaseun urged government to stop the multiple designation of foreign airlines and to facilitate the establishment of a major Maintenance, Repair and Overhaul (MRO) facility in Nigeria.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Business

FG Reopens Osubi Airport Warri for Daylight Operations

Published

on

muritala-muhammed-airport

FG Reopens Osubi Airport Warri for Daylight Operations

The Federal Government on Monday said the Osubi Airport in Warri has been reopened for daylight operations.

The Minister of Aviation, Hadi Siriki, disclosed this in a tweet.

The airport was closed in February 2020 over mismanagement and debt allegation involving aviation service providers and airport management.

However, Oberuakpefe Afe, a lawmaker representing Okpe/Sapeie/vaie federal constituency, recently moved a motion for the Federal Government through the ministry of aviation and relevant authorities to reopen the airport for flight operations.

On Monday, Hadi Siriki said “I have just approved the reopening of Osubi Airport Warri, for daylight operations in VFR conditions, subject to all procedures, practices and protocols, including COVID-19, strictly being observed. There will not be need for local approvals henceforth.

Continue Reading

Business

Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm

Published

on

Agric

Nigerian Brand, JR Farms Acquires 11% Stake in Rwandan Firm

JR Firms, an agribusiness firm with headquarters in Nigeria, has announced partnership with Sanit Wing Rwanda through the acquisition of 11 per cent stake in the company.

The CEO of the company, Mr Rotimi Olawale, explained in a statement that the partnership was in furtherance of its goals to ensure food security, create decent jobs and raise the next generation of agrarian leaders in Africa.

The stake was acquired through Green Agribusiness Fund, an initiative of JR Farms designed to invest in youth-led agribusinesses across Africa.

Sanit Wing Rwanda is an agro-processing company that processes avocado oil and cosmetics that are natural, quality, affordable, reliable and viable.

The vision of the company is to become the leading producers of best quality avocado and avocado by-products in Africa by creating value across the avocado value chain.

With focus on bringing together over 20,000 professional Avocado farmers on board and planting of three million avocado trees by 2025 through contract farming, the company currently works with One Acre Fund in supply of avocado to its processing facility.

The products of the company which include avocado oil, skin care (SANTAVO), hair cream and soap are being sold locally and exported to regional market in Kenya.

With the new partnership with JR Farms- the products of the company will enjoy more access to markets focusing on Africa and the European Union by leveraging on partnerships and trade windows available.

Aside funding, the partnership comes with project support in areas of market exposure, capacity building, exposure and other thematic support to grow the business over the next four years.

JR Farms has agribusiness operations in Nigeria, Rwanda, United States and Zambia respectively.

In Nigeria, the company deals in cassava value chain processing cassava to national staple “garri” which is consumed by over 80 million Nigerians on daily basis, while in Rwanda, it works in the coffee value chain with over 4,000 coffee farmers spread across the East Central African country.

Continue Reading

Business

Shut Down Depots Selling Petrol Above Approved Price – Marketers

Published

on

Petrocam

Shut Down Depots Selling Petrol Above Approved Price – Marketers

The Federal Government should close down depots that are selling petrol above the approved price, oil marketers said on Thursday.

National President, Independent Petroleum Marketers Association of Nigeria, Sanusi Fari, said the sale of petrol above government approved price by depot owners would soon lead to a hike in the commodity’s pump price.

Fari told journalists in Abuja that the government through its agencies such as the Department of State Services and the Department of Petroleum Resources should curb the development to avoid crisis in the downstream oil sector.

He said some private depot owners were selling at N165 per litre to independent marketers, way above the government stipulated price of N148 per litre.

Fari said, “Our challenge is the inconsistency in the pricing of petrol. Up till a week ago, government was still insisting that the February price for petrol remained unchanged.

“And most of the private depot owners are selling above the government stipulated price. As at today ( February 25, 2021) private depot owners are selling at N165 per litre to independent marketers.”

He added, “In the last six years, only NNPC imports refined products into this country and these tank farms buy their products from NNPC under a controlled price.

“This has affected our businesses seriously because government is insisting that we sell at the rate of N165, which is not going to work.”

The IPMAN president said filling station owners buy the product at N165 per litre from the private depots and incur other expenses such as transportation, rent, etc.

“So government cannot expect us to sell less than what we buy,” he said.

Fari added, “This is why we are calling on government and agencies that are saddled with the responsibility to control petrol pricing to urgently clamp down on depots that are selling above the stipulated price.”

The Nigerian National Petroleum Corporation, the country’s sole importer of patrol, recently stated that it never hiked the cost of petrol to depots.

It also enjoined the depot owners to sell the product at the approved rate and called on the DPR to enforce the stipulated price across the depots.

Continue Reading

Trending