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Domestic Airlines Groan Under Slanted Bilateral Air Agreement

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  • Domestic Airlines Groan Under Slanted Bilateral Air Agreement

Bilateral Air Service Agreement signed by Nigeria with a number of countries has become a major problem for domestic airlines expected to be major beneficiaries of such arrangement, stakeholders in the nation’s aviation sector have said.

Nigeria currently has over 70 BASAs signed with different countries of the world, which enable those countries to fly into the country.

But domestic airlines that have the capacity to fly to countries under BASA have complained that they are being denied entry into the countries, especially within the West African coast.

The bilateral agreement between Nigeria and another country was expected to pave the way for more direct flights between major cities of both countries on the principle of reciprocity by the designated airlines.

The Chairman of Air Peace, Mr. Allen Onyema, said that countries such as Ivory Coast had refused the airline’s application for a licence to operate into the country.

He said the Federal Government had given the airline the right to fly into other African countries but many of them were not giving operators from Nigeria access.

He said, “For over two years, we are only doing Ghana because other countries have refused to allow us in; Ivory Coast never wanted to answer our request. We had to go to them pleading; they didn’t tell us no; but we later discovered that one particular airline is using them to frustrate Nigerian carriers.

“They see us as a threat; Senegal has not come to see our facilities so they could grant us the approval we requested. We have written to them severally; our chief operating officer spent one week there in Senegal.

“We have gone to Cameroon more than 10 times but nothing positive has happened. We are ready to go into other African countries. We have the equipment to represent this country proudly; but they are not allowing us.”

An aviation security expert, Group Capt. John Ojikutu (Retd.), said the industry had been dealing with many infringements by foreign airlines on domestic routes but the aviation authority had not been able to do something about it.

He added, “These airlines include Ethiopian Airlines in particular flying to almost the five designated Nigeria international airports and could include Kaduna if the feelers one is getting from Abuja is true. On the regional international routes now are Asky and Rwanda Air, both flying commercial flights to Lagos and Abuja from Lome in Togo.

“No Nigerian airline has been designated to reciprocate these flights yet we want them to grow the industry and the nation economy. No one in the Nigerian Civil Aviation Authority is reckoning with the consequences of these flights on the domestic airlines earnings and the nation economy.”

Ojikutu said the NCAA under the CAA 2006 and in particular, Part XI Section 37(1) had the power to perform air transportation licensing functions in the manner which is considered best to ensure that Nigerian registered airlines could compete effectively with other airlines providing air transport services on international routes.

He however said this section was not being utilised in favour of the domestic airlines, adding that domestic airlines would not develop when the exclusive market on domestic and regional routes remained open to foreign carriers.

A source in the industry, who spoke on condition of anonymity, however said that some domestic airlines contributed to the problem they had with other countries.

“In some cases, some of them do not begin operations two years after they have been designated to begin flight to a particular country probably because they do not have the equipment or adequate manpower; and don’t forget that those countries also have their rules,” the source said.

The General Manager, Corporate Affairs of NCAA, Mr. Sam Adurogboye, said domestic airlines had the right to report errant countries to the Nigerian government for appropriate action.

“Airlines should not appear as if they are helpless; they can make official complaints to the Ministry of Aviation, which will in turn work with that of foreign affairs to tackle the problem because it is an agreement between two countries,” he said.

According to him, the NCAA cannot handle the matter alone, except it is mandated to do so by the government.

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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Dry Cleaners Set to Tap into $165 Billion Global Cleaning Industry

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The Fabric Professionals and Dry Cleaners Association of Nigeria (FPDA) is gearing up to host the “Clean Show Africa 2024” conference.

This conference aims to expose over 25,000 dry cleaners to the vast opportunities present in the global cleaning and hygiene industry, valued at a staggering $165 billion.

Scheduled to take place on May 28–29, 2024, in Lagos, the event is themed “Positioning Africa’s fabric and hygiene industry for excellence.”

It comes at a crucial time when Nigeria’s dry cleaning industry is experiencing steady growth, with projections indicating a 6.4% annual increase over the next decade.

According to Enibikun Adebayo, Chairman of FPDA, Nigeria’s dry cleaning industry was valued at $8.4 million in 2019.

However, this figure is expected to rise significantly, presenting a ripe opportunity for stakeholders to tap into.

Adebayo emphasized the importance of collaboration within the industry to fully leverage its potential.

“A year ago, we launched FPDA of Nigeria. We are also using the platform to educate our members to be better professionals,” stated Adebayo, highlighting the association’s commitment to enhancing professionalism and standards within the sector.

The conference will shine a spotlight on women in the dry cleaning business, recognizing their pivotal role in driving the industry forward. Reports have shown that dry cleaning businesses are often better managed by women, and the event aims to provide them with the necessary support and resources to thrive.

Ruth Okunnuga, Managing Director of Wasche Paint Nigeria, expressed the need to revolutionize Nigeria’s dry cleaning and laundry industry, emphasizing the lack of proper structure and investment.

She stressed the importance of data collection for effective planning and growth within the sector.

Joseph Oru, Managing Director of Zenith Exhibition, highlighted the conference’s objective of engaging the Federal Government to establish training institutions for dry cleaners. Such institutions would play a crucial role in equipping professionals with the skills and knowledge needed to meet global standards.

As Nigeria’s dry cleaning industry prepares to tap into the vast opportunities offered by the global cleaning market, the Clean Show Africa 2024 conference stands as a pivotal platform for collaboration, innovation, and growth within the sector.

With a focus on excellence and professionalism, stakeholders aim to position Nigeria as a key player in the dynamic and lucrative cleaning and hygiene industry.

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Nigeria-Taiwan Commerce Falls to $500m in 2023

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The Chief of Mission to the Taiwanese Government in Nigeria, Andy Liu, has said that the trade relations between Nigeria and Taiwan drop to $500 million in 2023 from $1 billion in 2021.

Liu made these comments during the 2024 Taiwan Business Forum held in Lagos.

According to Liu, Nigeria’s status as a net exporter of agricultural products, particularly sesame seeds has historically fueled the trade between the two nations.

However, the peak in trade experienced in 2021, buoyed by increased demand for Nigerian agricultural goods, notably declined in subsequent years.

“The highest peak of trade reached about $1 billion in 2021. It was the peak of COVID-19, with Nigerians enjoying surplus trading with Taiwan. We imported more of Nigeria’s agricultural products, such as sesame, aside from oil-related products. In 2021, we had a huge demand for agricultural products for our food processing industries,” Liu stated.

However, the trade dynamics shifted in the following years, leading to a significant decline in trade volume.

Liu attributed this decline to a normalization of demand following the peak in 2021, resulting in a reduction in trade value to $500 million by 2023.

Despite this decrease, Liu remained optimistic about the future trajectory of trade relations between the two countries.

“We might see some level of increase in the near future,” Liu enthused, highlighting Nigeria’s continued significance as a destination for Taiwanese businesses.

In addition to discussing trade volume, Liu addressed the issue of counterfeiting and piracy, which has affected Taiwanese products globally.

He said the Taiwanese government is working to combat this challenge by showcasing the quality of Taiwanese products and providing after-sale services.

“We have been having our delegates visit the world to prove that we are victims of piracy, but we are going to use the platform to show that we have good and quality products to let the world know who the true providers of these quality goods are,” Liu affirmed.

The President of Globe Industries Corporation, David Hwang, echoed concerns about counterfeit products, attributing the decline in profit margins to the influx of counterfeit goods from China.

Hwang emphasized the need for partnerships to address this issue and foster mutually beneficial trade relations.

Responding to the developments, the Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Sola Obadimu, commended the Taiwanese focus on African businesses and the quality of their products.

He pledged NACCIMA’s continued collaboration with Taiwanese companies to drive business growth for both nations.

As Nigeria and Taiwan navigate the challenges posed by fluctuating trade volumes and counterfeit goods, stakeholders remain committed to fostering resilient and mutually beneficial economic ties.

The 2024 Taiwan Business Forum served as a platform for dialogue and collaboration, laying the groundwork for future cooperation between the two nations.

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Nigeria Advances Plans for Regional Maritime Development Bank

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Nigeria is making significant strides in bolstering its maritime sector with the advancement of plans for the establishment of a Regional Maritime Development Bank (RMDB).

This initiative, spearheaded by the Federal Government, is poised to inject vitality into the region’s maritime industry and stimulate economic growth across West and Central Africa.

The Director of the Maritime Safety and Security Department in the Ministry of Marine and Blue Economy, Babatunde Bombata, revealed the latest developments during a stakeholders meeting in Lagos organized by the ministry.

He said the RMDB would play a pivotal role in fostering robust maritime infrastructure, facilitating vessel acquisition, and promoting human capacity development, among other strategic objectives.

With an envisaged capital base of $1 billion, RMDB is set to become a pivotal financial institution in the region.

Nigeria, which will host the bank’s headquarters, is slated to have the highest share of 12 percent among the member states of the Maritime Organization of West and Central Africa (MOWCA).

This underscores Nigeria’s commitment to driving maritime excellence and fostering regional cooperation.

The bank’s establishment reflects a collaborative effort between the public and private sectors, with MOWCA states holding a 51 percent shareholding and institutional investors owning the remaining 49 percent.

This hybrid model ensures a balanced governance structure that prioritizes the interests of all stakeholders while fostering transparency and accountability.

In addition to providing vital funding for port infrastructure, vessel acquisition, and human capacity development, the RMDB will serve as a catalyst for indigenous shipowners, enabling them to access financing at favorable terms.

By empowering local stakeholders, the bank aims to stimulate economic activity, create employment opportunities, and enhance the competitiveness of the region’s maritime sector on the global stage.

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