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Lufthansa Won’t Fly to Kaduna During Abuja Airport Closure

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  • Lufthansa Won’t Fly to Kaduna During Abuja Airport Closure

German carrier Lufthansa will not fly to the Kaduna airport during the closure of the Nnamdi Azikiwe International Airport in Abuja, a company spokesman said yesterday.

Lufthansa’s statement was the fallout of federal government’s decision to divert flights to the Kaduna airport, located about 100 miles north of Abuja, while the main airport is undergoing repairs, scheduled to take six weeks from March 8.

“We won’t fly from Kaduna during the closure of Abuja airport for six weeks,” the Lufthansa spokesman said by phone to Reuters. He did not give a reason.

The runway at the main airport had deteriorated to such an extent that some major international carriers refused to fly there, and some aircraft reported damage to their undercarriage.

While it is closed, Abuja-bound passengers will have to fly to Kaduna and travel by bus to the capital, guarded by security, on a road where kidnappings have taken place in the past few years.

The plans for Kaduna to handle Abjua flights have been met with scepticism. The airport handled just 12 flights in December 2015, the last month for which Nigeria’s airports authority has figures, compared with 812 that used Abuja.

A new terminal is being built but when Reuters visited it last month it was still under construction with cables hanging from ceilings.

Contingency plans are in place for the existing terminal to be used. The temporary closure of Abuja’s airport has been criticised by aviation labour unions, business leaders and diplomats.

British Airways, Air France, Turkish Airlines, EgyptAir and Ethiopian Airlines also fly to Abuja.

In October, Dubai-based Emirates stopped flying to Abuja, blaming the state of the runway and low load factor, among other reasons, according to the Ministry of Aviation.

Despite the reservations over the choice of Kaduna as an alternative aviation hub, the Minister of State for Aviation, Mr. Hadi Sirika, yesterday inaugurated a committee that would supervise the security arrangements for passengers at the Kaduna Airport, its environs and the Abuja-Kaduna expressway during the six weeks closure of the Abuja airport.

According to him, the committee which is made up of high level security personnel, will proactively adopt measures to checkmate any security threats to passengers and visitors during the rehabilitation of the Abuja runway.

While allaying perceived fears over Kaduna and its environs, he said the primary objective of governance is to secure and safe guard the citizenry and foreigners at all times, adding that the government under President President Muhammadu Buhari cannot do less, especially during the six weeks temporary closure of the Abuja airport.

Inaugurating the committee headed by the Assistant Inspector General of Police (AIG), Mr. Alkali Baba at the ministry’s headquarters in Abuja, the minister said the committee must be proactive to deal with any security challenges that may arise during the six weeks period.

Other members of committee include representatives of the Police Force, Nigerian Air Force, Federal Road Safety Commission (FRSC), Department of State Service (DSS), and the Nigeria Security and Civil Defence Commission (NSCDC).

Others are the Nigerian Immigration Service (NIS), Nigerian Customs Service (NCS), Federal Airports Authority of Nigeria (FAAN), and the National Drug Law Enforcement Agency (NDLEA).

The minister, while charging the members to provide all round security at the Kaduna Airport, said: “There is so much hype in the media about the perceived fear and threat surrounding the use of the Kaduna Airport.

“Government is setting up this high end committee to ensure watertight security for all passengers and stakeholders during the six-week closure of the Abuja Airport.”

According to him, government is determined to ensure holistic security through air surveillance, as well as rail and road monitoring for the safety of passengers and cargo movement.

He stressed that an adequate security template, which cannot be made available to the public, was in top gear to ensure hitch-free movement of passengers.

The chairman of the committee said the team would commence the reinforcement of security personnel on the Kaduna bye-pass, the airport and railway terminals at Idu and Kaduna.

Baba said: “The police and other security personnel are already on the ground, we shall map out immediate and remote challenges on the movement of passengers and hopefully, Nigerians and foreigners will not be disappointed.”

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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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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