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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.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Energy

FG Unveils N122 Billion Boost for Six Indigenous Gas Companies

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Gas Plant

The Federal Government has unveiled six indigenous gas companies eligible for the N122 billion equity participation program under the Midstream Downstream Gas Infrastructure Fund (MDGIF).

According to the Minister of State for Petroleum Resources (Gas), Mr. Ekperikpe Ekpo, the six companies—Asiko Energy Holdings Limited (AEHL), FEMADEC Energy Limited, Ibile Oil and Gas Corporation (IOGC), Nsik Oil and Gas Limited, Rolling Energy Limited, and Topline Limited—have undergone rigorous screening.

Ekpo made the announcement during the signing ceremony of the MDGIF and Promoters Agreement held in Abuja.

He revealed that the investment reflects the government’s commitment to energy security, economic growth, and the development of the country’s gas infrastructure.

Ekpo described the signing as a significant step in the country’s energy sector.

He said, “Today marks a significant step forward in Nigeria’s gas revolution. I am pleased to announce the Federal Government’s approval of N122 billion for six indigenous companies through the Midstream and Downstream Gas Infrastructure Fund (MDGIF). This groundbreaking investment demonstrates our unwavering commitment to energy security, economic growth, and the development of Nigeria’s gas infrastructure.”

“Today is a significant milestone as we formally enter into agreements with six business entities that have been screened to obtain government equity participation under the MDGIF.”

Ekpo assured that the N122 billion will not be the last as the MDGIF is screening another batch of beneficiaries.

He urged the benefiting investors, who are the first to sign agreements for the projects since the enactment of the Petroleum Industry Act (PIA), to live up to expectations.

He encouraged companies that did not make the first list not to lose hope.

The minister said, “For those who did not make the first six, we will have a second batch. Go home and put your records in order, and of course, this is the first since the passing of the PIA in 2021. This is the first signing, and we expect you to live up to expectations.”

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Crude Oil

Oil Prices Rise Further on Middle East Tensions, Supply Fears

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Oil

Oil continued to rise on Wednesday over worries that the escalating conflict in the Middle East could threaten oil supplies.

Brent futures rose 34 cents, or 0.46%  to settle at $73.90 per barrel while the US West Texas Intermediate (WTI) crude climbed 27 cents, or 0.39%, to settle at $70.10 per barrel.

Meanwhile, Israel and its ally, the US vowed payback for the attack, a sign that conflict in the region is intensifying after Iran fired more than 180 missiles at Israel, its biggest-ever direct attack on the country on Tuesday.

Since the late Tuesday bombing, Israeli ground troops have fought with Hezbollah in southern Lebanon, with Israeli Prime Minister Benjamin Netanyahu vowing vengeance and raising fears of a full-fledged conflict.

According to rumors, Israel’s reaction might include hitting Iranian oil production facilities and other critical targets.

On Wednesday, Iran said that its missile attack on Israel was stopped, barring further provocation.

It claimed that any Israeli retaliation to its attack would result in widespread destruction as Iran accounts for around 4% of world oil output.

Analysts say that an attack on Iran’s oil infrastructure could provoke it to respond with a strike on Saudi oil facilities, similar to one conducted in 2019 on crude processing facilities there.

Meanwhile, a meeting on Wednesday of the top ministers of the Organisation of the Petroleum Exporting Countries and its allies, OPEC+ kept oil output policy unchanged.

The group is set to raise output by 180,000 barrels per day each month from December.

Meanwhile, the US Energy Information Administration (EIA), the official US agency, reported an estimated inventory build of 3.9 million barrels for the week to September 27, driven by the latest escalation in the Middle East.

The inventory change compared with a draw of 4.5 million barrels for the previous week, which also saw declines in fuel inventories.

It also compared with the American Petroleum Institute’s estimate, which pegged crude oil inventory change for the final week of September at a negative 1.5 million barrels.

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Commodities

Federal Government Expands Subsidized Rice Program to Lagos, Kano, and Borno

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Rice mill

The Federal Government has announced that Lagos, Kano, and Borno will be the next states that will benefit from its subsidized rice program aimed at addressing economic hardship in the country.

The initiative aims to sell a 50kg bag of rice for ₦40,000.

According to a director at the Federal Ministry of Agriculture and Food Security, plans are already underway to roll out the food subsidy program in these states.

Investors King learned that since the launch of the subsidized rice program in September, only civil servants in Abuja, the Federal Capital Territory (FCT), have benefited from it.

However, the director revealed that the government is ready for the next phase of the program, which will help address growing food insecurity in Nigeria.

The source disclosed that the next phase, set to begin shortly, is part of a broader strategy by President Tinubu’s administration to ensure that no Nigerian goes to bed hungry.

The official also dismissed reports that the sale of subsidized rice has been suspended in Abuja, clarifying that the intervention is still in its early stages.

According to him, while the ministry is actively coordinating with other states, sales are ongoing in Abuja.

“As I speak to you now, we are about to activate sales in Lagos and Kano states, with Borno State also set to be addressed,” the agriculture ministry official stated.

“We’ve barely started; how can we stop? Sales are ongoing, and we are actively engaging with other states,” he added.

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