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Airlines Oppose Abuja Airport Closure

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  • Airlines Oppose Abuja Airport Closure

The Federal Government on Thursday explained to aviation stakeholders why the Nnamdi Azikiwe International Airport, Abuja must be shut for six weeks beginning from March 8 in order to carry out repairs on its runway and taxi ways.

But despite the explanation made by the Minister of State for Aviation, Senator Hadi Sirika, at a stakeholders’ meeting, the Airline Operators of Nigeria, an umbrella body for carriers in the country, opposed the move by the government to shut the NAIA.

The Federal Government had earlier stated that during the closure of the Abuja airport, passenger traffic and flight activities would be diverted to the Kaduna International Airport for the six-week period, a development that would lead to the screening of air travellers twice, in Abuja and Kaduna.

In a bid to get the inputs of stakeholders, the Federal Government convened an industry-wide meeting on Thursday, which had in attendance different security agencies’ officials, representatives of foreign embassies in Nigeria, international airline operators and their domestic counterparts, legislators, the governments of Kaduna, Kwara and Niger states, as well as other participants.

However, in its submission after an elaborate presentation by the minister, the AON declared that it was in support of the rehabilitation of the NAIA runway, but stressed that the facility should be repaired at night without necessarily shutting down the airport completely for six weeks.

Speaking on behalf of the airline operators, the Chairman, AON, Capt. Nogie Meggison, argued that the Kaduna airport might not be ready to carry the volume of traffic that hits Abuja on a daily basis, among other issues.

He said, “We are in total support of the rehabilitation of the Abuja runway, which is long overdue and is becoming a safety issue that needs to be addressed as soon as possible. But the AON, on the other side, is of the view that shutting the runway is not the best for now.

“We believe that the runway can be repaired at night, like what is done in other countries. A case study is the Gatwick Airport, which handles 400,000 passengers annually, far higher than what Abuja handles. Or alternatively, the runway in Abuja is 3,900 metres and if you split it into two, you will get roughly 2,000 metres.”

Meggison added, “With 2,000 metres of runway, they can fix one side for three or four weeks and come back to the other side. With 2,000 metres of runway, a 737 aircraft can comfortably get into it for a one-hour flight; and a DRJ, Dash-8 and domestic carriers can come in. International carriers can go to Lagos and Kano, and we distribute for them, like what is done anywhere in the world.”

“We also believe that Kaduna may not be too ready for this and for the volume of passengers that will be coming through that airport.”

In response to the AON’s position, the minister said the government would have worked at night on the Abuja airport if the level of dilapidation of the facility was just on the surface of the runway and taxi ways.

Sirika said, “But right now, all the four-level structures on that runway are completely gone. It is completely dilapidated. What was done in Gatwick was done for six months, but we are doing six weeks of closure to be able to attend to the critical parts of that runway.

“This working at night without disruption of flights is what we have been doing for 14 years on that runway and we have been achieving the same result. To stop spending billions and getting the same result, we engaged a wide range of engineers, who advised that it be closed and a complete and thorough job be done on the runway.”

The minister explained that the lifespan of the Abuja runway had been exceeded by 14 years without adequate maintenance as opposed to that of the Gatwick Airport, which receives constant maintenance.

He stressed that the Abuja runway might be forced to shut down on its own, as was the case of the Port Harcourt airport runway some years ago, a development that grounded flight activities in the state for two and half years.

On logistics being put in place for travellers to use the Kaduna airport, Sirika said N1.1bn had been approved by the Federal Government for its rehabilitation and that work on the facility would be completed before March 8.

He said Abuja passengers would board free buses to and from the Kaduna airport, adding that security would be provided by aviation security personnel, police, Ministry of Defence, Nigeria Security and Civil Defence Corps and the Kaduna State Government.

Sirika explained that military and police officers would be stationed on the Abuja-Kaduna Expressway during the six-week period, and that there would be train and helicopter services for passengers who could afford them.

On claims that the United Kingdom High Commission in Nigeria would close its services during the period, the minister stated this was a lie, adding that he had met with the personnel of the high commission and they had refuted the allegation.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Company News

Axxela Limited Raises N16.4bn in Oversubscribed Bond Issuance

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Bonds- Investors King

Axxela Limited, a leading sub-Saharan African gas and power company, has successfully completed its N15 billion Series 1 Bond Issuance.

The company raised N16.4 billion due to oversubscription and investor confidence in the company’s financial strength and strategic direction.

Bolaji Osunsanya, Axxela’s Chief Executive Officer, expressed his satisfaction with the outcome, highlighting the bond’s oversubscription of 109%.

Despite challenging economic conditions marked by rising interest rates and limited market liquidity, Axxela’s bond offering attracted strong interest from a diverse group of investors, including pension fund administrators, asset managers, and high-net-worth individuals.

Osunsanya explained that the proceeds from the bond issuance would play a crucial role in funding the company’s long-term capital expenditures, managing its weighted average cost of capital, and diversifying its funding sources.

The funds will support the completion of ongoing gas pipeline projects across Nigeria, aligning with the company’s commitment to enhancing energy infrastructure and contributing to the country’s energy transition agenda.

Stanbic IBTC Capital, serving as the lead issuing house alongside seven joint issuing houses, played a pivotal role in facilitating the transaction, with Stanbic IBTC Bank acting as the transaction bank.

The successful bond issuance reflects Axxela’s strategic positioning as a key player in the region’s energy sector and its ability to leverage strong investor confidence to drive growth and innovation in the industry.

As Axxela continues to expand its presence and strengthen its operations, the oversubscribed bond issuance serves as a testament to the company’s resilience and its commitment to delivering value to shareholders and stakeholders alike.

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Company News

Dangote Refinery Continues Price Slashing: Diesel Now at ₦940/Litre, Aviation Fuel at ₦980/Litre

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Dangote Refinery

Dangote Petroleum Refinery has once again sent ripples through Nigeria’s fuel market by further reducing the prices of diesel and aviation fuel.

In a bid to alleviate economic hardships faced by Nigerians, the refinery has lowered the price of diesel to ₦940 per litre and aviation fuel to ₦980 per litre.

This latest move comes on the heels of the refinery’s recent price reduction to ₦1,000 per litre for diesel, which was celebrated across the country.

The decision to slash prices further underscores Dangote Refinery’s commitment to providing affordable fuel to consumers.

Anthony Chiejina, the Head of Communication at Dangote Petroleum Refinery, announced the development.

He revealed that the new prices are part of a strategic partnership with MRS Oil and Gas stations to ensure accessibility and affordability of fuel across all major locations, including Lagos and Maiduguri.

The refinery’s management expressed optimism that the price reduction would significantly ease the financial burden on consumers, particularly amid rising inflation and energy costs.

They also hinted at extending the partnership to other major oil marketers to ensure uniform pricing and prevent retail buyers from purchasing fuel at exorbitant prices.

This marks the third major reduction in diesel prices in less than three weeks, signaling Dangote Refinery’s proactive approach to addressing economic challenges.

The move has garnered praise from various quarters, with Nigerian President Bola Tinubu commending the refinery for its efforts to support the economy.

Industry experts, including Ajayi Kadiri, the Director General of the Manufacturers Association of Nigeria, lauded the refinery’s initiative, highlighting its potential to stimulate economic activities across critical sectors such as industrial operations, transportation, logistics, and agriculture.

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Appointments

First Bank of Nigeria Appoints Olusegun Alebiosu as Acting CEO Following Resignation of Dr. Adesola Adeduntan

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Olusegun Alebiosu

First Bank of Nigeria Limited, a subsidiary of FBN Holdings PLC, has announced the appointment of Mr. Olusegun Alebiosu as its Acting Chief Executive Officer (CEO).

This decision comes in the wake of the resignation of Dr. Adesola Adeduntan, who has led the bank for the past nine years.

The appointment, which takes immediate effect, is subject to the approval of the Central Bank of Nigeria (CBN), reflecting the bank’s commitment to regulatory compliance and governance standards.

Mr. Alebiosu, a seasoned banking professional with over three decades of experience, is well-prepared to take on the responsibilities of leading First Bank Nigeria during this transition period.

Having served as the Executive Director and Chief Risk Officer, he played a pivotal role in the transformation and growth of the institution over the past eight years.

His extensive experience spans various aspects of the banking and financial services industry, including credit risk management, financial planning, corporate and commercial banking, and project financing.

Before joining First Bank Nigeria in 2016, Mr. Alebiosu held key positions in renowned financial institutions such as Coronation Merchant Bank Limited and the African Development Bank Group.

Expressing gratitude for Dr. Adeduntan’s exemplary leadership, the Board of Directors acknowledged his significant contributions to the bank’s growth and success during his tenure.

Dr. Adeduntan’s departure marks the end of an era characterized by remarkable achievements and milestones for First Bank Nigeria.

As Acting CEO, Mr. Alebiosu is poised to build upon the bank’s legacy and steer it towards continued growth and profitability. With a strong focus on strategic objectives, he aims to uphold First Bank Nigeria’s reputation as a leading financial institution in Nigeria and beyond.

In his new role, Mr. Alebiosu will work closely with the Board of Directors and management team to ensure seamless operations and uphold the bank’s commitment to delivering exceptional services to its customers.

As the banking industry undergoes rapid transformation and evolving regulatory landscape, First Bank Nigeria remains committed to maintaining its position as a trusted financial partner for individuals and businesses across the country.

With Mr. Alebiosu at the helm, the bank looks forward to a new chapter of innovation, resilience, and sustainable growth.

The appointment of Mr. Olusegun Alebiosu underscores First Bank Nigeria’s commitment to continuity and stability amidst leadership changes, signaling confidence in his ability to lead the bank through its next phase of growth and development.

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