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FG Unveils New National Carrier, Nigeria Air, Targets 81 Routes

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Nigeria Air
  • FG Unveils New National Carrier, Nigeria Air, Targets 81 Routes

The Federal Government on Wednesday unveiled the branding and livery for the new national carrier, Nigeria Air, and stated that the airline would be inaugurated at the end of this year.

According to a statement issued by the Ministry of Aviation in Abuja, the Minister of State for Aviation, Senator Hadi Sirika, unveiled the carrier at a press conference during the Farnborough Air Show in London.

Sirika was quoted as saying, “I am very pleased to tell you that we are finally on track to launching a new national flag carrier for our country, Nigeria Air. We are all fully committed to fulfilling the campaign promise made by our President, Muhammadu Buhari, in 2015. We are aiming to launch Nigeria Air by the end of this year.

“We obtained the Certificate of Compliance from the Nigerian Infrastructure Concession Regulatory Commission two weeks ago and can now go into the investor search. I am confident that we will have a well-run national flag carrier that is a global player, compliant with international safety standards and one which has the customer at its heart.

“We hope to establish an airline that communicates the essence of our beautiful country; an airline we can all be proud of.”

The ministry said the branding and naming of the new national carrier came after a social media campaign that was undertaken by the Ministry of Transportation (Aviation).

It said invited Nigerian youths were asked for their input in order to come up with a name for the new flag carrier, adding that the ministry’s Facebook page and website engaged over 400,000 people.

The ministry said extensive market research was carried out, which involved focus groups across the country, and over 100 interviews with aviation stakeholders and professionals, politicians as well as business owners.

It also stated that it was currently running an aviation road map that includes airport concession, aerotropolis, an aircraft Maintenance, Repair and Overhaul centre, agro allied terminals, the national carrier and an aircraft leasing company.

“The government will support the launch of the new flag carrier with viability gap funding in a public private partnership arrangement to deliver a national flag carrier guided by international standards,” the ministry added.

Sirika said the Federal Government had learnt a lot of lessons from the experience of the defunct Nigeria Airways, and was now determined not to repeat the mistakes that led to its demise.

Meanwhile, Sirika has stated that the Federal Government has selected 81 routes for the commencement of operation of Nigeria Air.

Speaking at the Farnborough Airshow in London following the unveiling of the new national carrier, the minister was quoted to have said that for a start, the airline would operate 40 domestic, regional and sub-regional and 41 international routes.

He added that the airline would operate on a Public-Private Partnership model, while investors and strategic partners would decide who would run it.

He said, “This airline is a business and not a social service. It is not intended to kill any airline in Nigeria but complement it and promote it. It must be done in the right way so that it will be here to stay.

“Government will not hold shares beyond five per cent at the topmost. This airline has the backing of the government. Government will come up with funding according to the business case that has been delivered to the government. We will engage the youth of Nigeria because we do believe in the ‘Not Too Young to Run’.

“We engaged them in the campaign to name this airline. We engaged 400,000 Nigerian youths to arrive at the name of the airline. All of their ideas were taken and digested and we came up with what is an average. The airline will take into cognizance the multicultural nature of the nation through its diversity. We want to use this airline to make a statement that yes, we can do it.”

The minister also said the government would fast-track the airline’s International Air Transport Association’s membership and safety audit.

An aviation expert, Group Capt. John Ojikutu (retd), however, stated that the Federal Government’s route plan was not properly thought out.

He said the routes were already saturated with the new airline’s competitors, adding that this might stifle its growth.

“Whoever is planning these routes for the new national carrier should go into records and see what happened along same routes between Nigeria Airways and KLM; Nigeria Airways and South Africa Airways and Nigeria and Virgin Atlantic. You cannot go into the same business with your competitor(s) as partners,” 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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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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