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Aero Raises Hope for Redundant Workers

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  • Aero Raises Hope for Redundant Workers

The management of Aero Contractors has given assurance to the workers who were relieved of their duties and put on redundancy by the airline, saying that many of them would be re-absorbed.

In fact, Aero has started re-absorbing some of them, as the technical personnel among them had gone back, as the airline’s Maintenance, Repair and Overhaul (MRO) session has been expanded with more jobs coming to the company.

This was disclosed by the CEO of the foremost Nigerian airline, Captain Ado Sanusi who commended the Asset Management Corporation of Nigeria (AMCON) for sustaining the operations of the company and labour for supporting the plan to ensure the survival of the organisation and assured that as the airline increases its operating fleet it would expand its routes, it would re-absorb its ground staff and other personnel.

Sanusi said it is after the re-absorption of these workers that those who were left out would no more be on redundancy and would then be paid there severance benefits, adding that the company has already started pay off some of the staff who were not in line with the re-absorption plan.

The Aero CEO explained that in order to ensure that the oldest commercial airline survived, the management put about 60 percent of the workforce on redundancy, noting that redundancy “does not mean termination but a long leave without pay, which was a decision that has helped to stabilise the airline.”

He also explained that it was after the workers were placed on redundancy that the airline was able to build capacity to three aircraft and upgraded its aircraft maintenance capacity to C-Check level.

“Our MRO is functioning well and when we saw that the MRO was successful, we recalled 120 personnel to work on the maintenance session because the demand for third party aircraft maintenance from us is rising, just as we are maintaining our Boeing B737 at C-Check level,” Sanusi said.

The Aero CEO said the company aims to develop the MRO to a level that it would be able to carry out line maintenance for all aircraft types operating in Nigeria and that is in addition to the present level that it carries out maintenance checks on Boeing B737 Classics to C-Check level.

He said South African Technik, A.J Walters of the United Kingdom and Ethiopian Technik have partnered the organisation in a bid to assist in developing the MRO.

Speaking to reporters at the Aero headquarters at Lagos airport on Thursday, Sanusi said the maintenance arm has been separated from the airline company since the Nigerian Civil Aviation Authority (NCAA), approved C-Checks on B737 classics and certified the company as Aircraft Maintenance Organisation (AMO), adding that the MRO is now generating revenue for the company.

“We have a wide range of partners, we have partnered from South African Technik on quality inspection and specialised manpower, they supervise our C-Checks, we have A.J Walters of UK, they have their office here in Aero; they will be supplying spares , we have also entered into a broader agreement with Ethiopian technik; they are very good, they will support the C-Checks. We are also in talks with others because we discovered that there is no formidable MRO in West and Central Africa so we intend to develop the MRO to a level that will be able to provide line maintenance for airlines operating in Nigeria, that is why we have separated the airline from MRO”, he said.

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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