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NCAA Clarifies on 5% Remittances by Airlines



  • NCAA Clarifies on 5% Remittances by Airlines

The Director General of the Nigerian Civil Aviation Authority (NCAA), Captain Muhtar Usman has explained that the five percent ticket and cargo sales charges (TSC), must be paid by domestic airlines from their ticket sales after value added tax (VAT) was deducted.

The regulatory authority and the airlines have been at loggerheads over the charges following the NCAA’s insistence that airlines must automate their payment system to ensure transparency in the payment of the charges.

The airlines are insisting that the charges must be taken from their base fare and not from their overall ticket cost, noting that international airlines are charged by the International Air Transport Association (IATA) through the Billing and Settlement Plan (BSP).

But the Director General of NCAA, while shedding more light on the issue in an exclusive interview with THISDAY, said that after VAT deductions, the five percentage charge should be taken from the cost of the ticket.

He explained that the charge is not tax, but payment stipulated by the Civil Aviation Act to sustain the operations of aviation agencies, which NCAA, the Nigerian Airspace Management Agency (NAMA), the Nigeria Meteorological Agency NIMET), the Accident Investigation Bureau (AIB) and the Nigerian College of Aviation Technology (NCAT) benefit from.

Usman also dismissed the threat of the airlines to shut down operation over disagreement on the charges, insisting the charge is not arbitrary payment at the whim of the airlines, but a payment stipulated by law, which the airlines ought to abide by.

NCAA had earlier explained that in order to ensure transparency and to stop the piling up of the debts owed the agencies by the airlines; the payment system should be automated so as to deduct the five percent charge from ticket sales.

The airlines also hinged their protest on the fact that they operate in a harsh environment with obsolete airport facilities, prompting many of them to operate for limited period.

But the Director General urged the airlines to dovetail their operations to the period each airport is open for activities.

“Lack of facilities or inadequate facilities at airports does not have anything to do with five percent charge to NCAA by the airlines. Every airport has opening and closing time and it is subject to equipment and manpower. The airlines should plan their flight schedule to suit the operational period of each airport. This is straight forward because everybody knows the operational hours of every airport.

“The five percent charge is clear as stated in the 2006 Civil Aviation Regulation. It stated the percentage of the ticket sales, not what the airline decides to pay. It is what is actually charged, minus tax. So the five percent is charged on whatever is the cost of the ticket, minus tax.

This is because airlines pay value added tax (VAT), which they are not supposed to pay because other modes of transport don’t pay VAT. So when you remove VAT from the ticket, every other thing is chargeable. The airlines ought to know that the TSC is a charge; it is not a tax and it is meant to support the operations of the aviation agencies,” Usman explained.

The Director General said the NCAA and the airlines would continue to talk until they reach amicable resolution over the matter.

“We keep talking. Nobody is threatening anybody. It is far from it. We don’t contemplate that. We work together. Without regulation flight operations will be difficult and there will be no regulation if there are no airlines to operate. I don’t know why they are resorting to threat to shut down operation. We have been discussing and we will continue to discuss to seek the way forward. It is not about grounding anybody. The first priority is safety; it is only on that we can ground an airline. We can look at economic activities and whatever action we take must be within the law,” he said.

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


Nestlé Nigeria: Maggi Supports Over 100,000 At Ramadan



Maggi Ramadan- Investorsking

As has been its tradition in the past 10 years, Maggi supported over 100,000 households across Nigeria during the Ramadan season. From the start to the end of the season, the Maggi team was fully involved in providing healthy and nutritious food products for families at Sahur and Iftar.

Working with nutritionists and food enthusiasts, the brand also provided nutrition education to help them make healthy nutrition choices.

In the spirit of sharing and performing acts of service, the brand gave out to shoppers one million gift items through the Ramadan Shopper Promo starting from two weeks before Ramadan until the end of the season. Over 100,000 consumers were also given free food items: rice, vegetable oil, spaghetti and Maggi Seasoning, including donations to 160 charitable organizations and mosques, and door to door (Gida Gida) visits to 1,250 homes to share healthy food items.

To support healthy nutrition, it launched the Maggi Ramadan Diaries, a TV and radio programme that aired for all 30 days of the fast across multiple television stations, radio stations and online platforms. The cooking show provided tips on healthy lifestyles, shared knowledge about quick and delicious recipes and nutritious tips on Iftar and Sahur.

To round off the Eid celebrations, Nestlé Nigeria hosted consumers at a sumptuous dinner themed, ‘Maggi Food and Everything Else.’ Participants shared in a delicious Eid experience, with meals showcasing the best of Northern cuisine prepared by foremost chefs and food enthusiasts.

Speaking on Nestlé’s commitment to supporting individuals and families during Ramadan over the past ten years, Category Manager for Culinary, Nestlé Nigeria, Mrs. Nwando Ajene said, “Ramadan is a special season for renewed dedication to the values of service and sharing goodness; values which Maggi also firmly represents. Looking back on the past year, 2021 brings a fresh appreciation of the joy and privilege of coming together.

“Today, therefore, we want to share goodness with our consumers, stakeholders, and influencers who have been a part of this Maggi Ramadan experience over the past ten years. We are happy to have been a part of the Ramadan journey, and we will continue to support individuals and families to make healthier and tastier food choices every day.”

Jamilah Lawal, a Social Media Influencer had this to say about her experience; “Participating in ‘Maggi Dairies’ is an opportunity for me to share nutrition tips with countless people during Ramadan.
This year is special as we all recover from the impact of the pandemic. If there is anything we learned from 2020, it is the importance of healthy nutrition every day. Over the past years, I have seen the impact of improved nutrition on many families, and many more food enthusiasts have joined the campaign to promote healthier nutrition. I cannot thank Maggi enough for this platform which I will always support.”

MAGGI is an iconic brand from the stable of Nestlé, the good food, good life company committed to unlocking the power of food to enhance the quality of life for everyone today and for generations to come.

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Box Office Revenues Plunged by $30B in a Year, US Market The Hardest Hit



BOX Office- Investorsking

The COVID-19 has had a devastating impact on the global film industry. With cinemas closed amid the lockdowns and millions of people practicing social distancing, ticket sales plunged to the lowest point in decades.

According to data presented by Stock Apps, global box office revenues amounted to $12bn in 2020, a catastrophic $30bn plunge in a year.

US Box Office Revenues Plunged by 80 percent in a Year

The COVID-19 hit came after the best year for the film industry in its history. In 2019, box office revenues hit $42.3bn, revealed the Motion Picture Association`s 2020 Theatrical and Home Entertainment report. In fact, this was a peak of impressive revenue growth that had been ongoing for over a decade.

However, cinema closures in 2020 caused a sharp decline in annual box office revenues, with the figure plunging by 71 percent year-over-year.

Statistics show that North America, as the world’s leading box office market for several decades, has been the hardest hit by the COVID-19 pandemic. In 2019, North American box office revenues amounted to $11.4bn, a slight drop from $11.9bn in 2018. After the pandemic struck, revenues plunged by 80 percent YoY to only $2.2bn in 2020.

Although the smallest of all regions in terms of box office revenues, the Latin American market witnessed almost identical revenue loss last year. Statistics show box office revenues in Latin American countries dipped by 81 percent in a year, falling from $2.8bn in 2019 to $500 million in 2020.

Asian Market Witnessed $11.8B Revenue Drop, EMEA Countries Lost $7B in Box Office Revenues Amid Pandemic

Over the years, Asian countries have started making their mark on the global movie industry. Bollywood movies, in particular, are gaining popularity outside of India. Still, while India’s film industry is releasing far more movies than China and the United States combined, its box office revenues are comparatively small.

Statistics show box office revenues in the Asia Pacific region grew steadily for the last decade, with the figure rising from $7.2bn in 2009 to $17.8bn in 2019. However, the closure of cinemas and theatres caused revenues to plunge by $11.8bn or 66 percent YoY in 2020.

EMEA countries lost around $7bn in box office revenues due to the pandemic. In 2019, cinemas across Europe, the Middle East, and Africa generated $10.3bn in ticket sales. Statistics show that last year, box office revenues plunged by 67 percent YoY to $3.3bn, one-third of pre-COVID-19 value.

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Dangote Cement Invests in New Line to Increase Supply, Reduce Price



Dangote Cement - Investors King

Following the surge in the price of cement and demand, Dangote Cement Plc on Monday said it has invested in a new line at Obajana, Kogi State as well as in Okpella, Edo State and plans to reactivate its Gboko plant that has been shut for four years.

The leading manufacturer plans to rein in price and meet rising demand through an increase in supply.

Dangote Group’s new Chief Commercial Officer, Mr. Rabiu Umar, disclosed at a media briefing in Lagos.

Umar said: “There is a surge in demand immediately after COVID-19 disruption. This surge in demand is not a localised Nigerian phenomenon as a couple of countries around the world like Pakistan and Mexico, among others are seeing a rising incident of demand for cement.

“So the question is what is the Dangote Cement Plc doing to bring it down? First and foremost we have invested in a new line that has been completed in Obajana, which is waiting for the power plant for us to start bringing out more cement.

“We also have a new line in Okpella, Edo State, which is going to start operation very soon. Also we have restarted one of our plants in Gboko, Benue State that has not worked for almost four years all in a bid to make sure that there is enough production to supply the market.

He added: “What drives price is the interplay of the market forces of demand and supply. As a business, we have not increased our price. And the only way to deal with this upsurge is to have adequate capacity to supply the market by producing more to prevent a break in the supply chain that will lead to arbitrage.

“So, what we are trying to do is to ensure that we increase our supply of cement in the market and we believe that will help to manage the skyrocketing prices of cement.

“We have also stopped exporting cement to ensure that we meet local demand in spite of the fact that the foreign exchange from exports is very valuable in times like this.”

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