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Nigeria to Lose $68m to Saudi Arabian Airlines for 2017 Hajj Exercise

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Emirates Airlines
  • Nigeria to Lose $68m to Saudi Arabian Airlines for 2017 Hajj Exercise

Nigeria risks loosing $68million to the Kingdom of Saudi Arabia during the forthcoming 2017 hajj, following the allocation of 45 percent of the total pilgrims to a Saudi Arabia-based airline, FlyNas, by National Hajj Commission (NAHCON).

Already, local stakeholders in the sector have raised eyebrow as they described the move as a “rip off that has the capacity to stunt growth in Nigeria airline industry.”

A source also said that already “Airline business is mega box conducted in dollars and 45 per cent simply translated to a big minus to Nigeria because the country will lose so much money.”

In total, 95,000 Nigerian would be performing the 2017 hajj that attracted the lowest fee of N1,500,000 covering flight ticket, royalty, accommodation, intra and inter city travels and host of others.

Investigation revealed that NAHCON’s decision to engaged the services a Saudi Arabia-based airline Fly Nas for 2017 hajj was a lopsided policy that has further worsen unfavorable trade balance with the Saudis.

Commenting further on the implications of such policy, the aviation source said: “Instead of encouraging our indigenous airliners, NAHCON has ended up sending them away from the business circle in favour of a foreign airline. It is high time for the federal government to come to the aide of indigenous airliners before it is too late.”

But NAHCON Chief Media Relation Officer, Alhaji Adamu Hassan Abdullahi, in a telephone chat, confirmed the allocation of 45 per cent of total number of Nigerian pilgrims to Flynas, saying “it was a policy introduced by Saudi authority.”

He dismissed the anticipatory loss as ruse, stressing that “Nigeria is not going to lose $68million as claimed by the service providers.”

Similarly, there had been groundswell of protest across the 36 states pilgrims welfare boards over what they called “unilateral decision of NAHCON to impose carrier on them contrary to what was obtained in the past.

It was also learnt that in recent meeting held at Saudi Arabia by top Nigerian pilgrimage officials, they agreed among other things to fought and exert their independence and block overbearing influence of the regulatory agency.

the source said the process was still one but from the look of things, NAHCON would not do justice to the state pilgrims’ boards, as according to him if care is not taken, the commission will just allocate airlines to states without consulting the states as it does last year.

When contacted, the National Hajj Commission Chief Media Relation Officer, Alhaji Adamu Hassan Abdullahi in a telephone chat noted that the Hajj regulatory agency was not blame for the policy.

“the Saudi Authority imposed Flynas on countries participating in hajj operation, and according to the policy each country must allocate 50 per cent of its total pilgrims to Flynas.”

Speaking further, “NAHCON chairman insisted that it should not be 50/50 and because of the good relationship between Nigeria and Saudi, we are allowed to allocate 45 per cent instead of 50 per cent.”

He said “unlike Nigeria, Niger Republic and Senegal had to allocate all their pilgrims to Flynas because Kabo air that usually operates in the two countries was denied a chance for being a foreign airline, and to be honest with you, Nigeria is not going to lose $68million as claimed by the service providers”.

Consequently, NAHCON image Maker advised the service providers to blame Saudi Authorities and not the Hajj regulatory agency.

He said instead, NAHCON is fighting for Nigerian businessmen, as according to him the commission is in discussion with the Saudi Chamber of Commerce to see how Nigerian businessmen can import goods to Saudi during hajj.

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.

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Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd

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The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

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Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins

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Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

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Nigeria, Other OPEC Members Oil Revenue to Hit 18 Year Low in 2020

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Revenue of OPEC Members to Drop to 18 Year Low in 2020

The United States Energy Information Administration (EIA) has predicted that the oil revenue of members of the Organisation of the Petroleum Exporting Countries (OPEC) will decline to 18-year low in 2020.

EIA said their combined oil export revenue will plunge to its lowest level since 2002. It proceeded to put a value to the projection by saying members of the oil cartel would earn around $323 billion in net oil export in 2020.

If realised, this forecast revenue would be the lowest in 18 years. Lower crude oil prices and lower export volumes drive this expected decrease in export revenues,” it said.

The oil expert based its projection on weak global oil demand and low oil prices because of COVID-19.

It said this coupled with production cuts by OPEC members in recent months will impact net revenue of the cartel in 2020.

It said, “OPEC earned an estimated $595bn in net oil export revenues in 2019, less than half of the estimated record high of $1.2tn, which was earned in 2012.

“Continued declines in revenue in 2020 could be detrimental to member countries’ fiscal budgets, which rely heavily on revenues from oil sales to import goods, fund social programmes, and support public services.”

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