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Enhancing Local Aircraft Maintenance Capacity

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  • Enhancing Local Aircraft Maintenance Capacity

The Nigerian Civil Aviation Authority (NCAA) has licensed an indigenous firm, 7 Star Global Hangar, to operate as an aircraft Maintenance Repair Organisation (MRO). The facility has raised the stakes in capacity of local firms to maintain Boeing 737 classics. Besides saving the over $ 90 million spent on C- check for the aircraft type in the fleet of domestic carriers, the facility will create more jobs and remove problems of offshore maintenance, KELVIN OSA OKUNBOR reports.

Last week’s nod by the Nigerian Civil Aviation Authority (NCAA) to an indigenous firm, 7 Star Global Hangar, to repair Boeing 737 Classics fleet in Lagos and Abuja was historic in many ways.

This is the first time the regulator is granting approval to an indigenous firm to carry out such a job in two locations.

Specifically, the firm will be carrying out major maintenance repairs known in aviation par lance as C- check on Boeing Classics.

C-Check is a major maintenance repair carried out on an aircraft every 18 months in line with regulatory requirements.

Findings at the NCAA reveal that there are over 30 registered Boeing aircraft on the fleet of Nigerian carriers, including: Air Peace; Arik Air, Aero, Azman Air, Medview Airlines and other carriers. They include Boeing 737-300; 400; 500; 600; 700 and 800 series.

Before the approval, Nigerian carriers with Boeing 737- Classics ferry their aircraft to Morocco, South Africa, Ethiopia, Europe, Middle East, United States or South America for the mandatory 18-month C-check, which costs operators an average of $2 million per aircraft.

Boeing Aircraft constitutes over 60 per cent of the planes in the fleet of indigenous carriers.

7 Star Global Hangar, owned and managed by Nigerians, its promoters said, would start operations next week, following relevant approvals from the regulator to carry out the critical assignment.

The firm will be the second, besides Aero Contractors, which wsas licensed to carry out major maintenance checks for registered Boeing aircraft on the fleet of domestic carriers.

The new move, many experts said, would save Nigeria over $90 million hitherto spent on offshore maintenance of their Boeing aircraft in Europe, United States and some Middle and Far East countries.

According to the Minister of State, Aviation, Hadi Sirika, domestic carriers spend between $1.8 million and $ 3 million to carry out C- check on a B737 classic aircraft.

Airlines spending during major airplane repairs covers aircraft ferry, labour, spares and crew allowance and accommodation during the repairs.

In an interview in Lagos, 7 Star Global Hangar Chief Executive Officer, Isaac Balami, an aircraft engineer, said the firm will stock comprehensive spare parts in Lagos and Abuja that will be available to airlines in Nigeria, West and Central African regions.

Balami, while urging operators to take advantage of the new facility, decried the high cost of maintenance in West and Central African regions, saying the hangar has come as a huge relief.

Balami who is a President of National Association of Aircraft Pilots and Engineers (NAAPE) , while serving as a senior manager at Aero Contractors , said he left the airline to focus on the new facility.

, He said with the license issued by NCAA to the firm to serve as an “Approved Maintenance Organization”, airlines could now save millions of dollars hitherto taken abroad for aircraft repairs.

He said: “As we commence operations, millions of dollars will be saved for airlines greatly reducing capital flight.”

Balami said the firm is working with Jordanian, American and European technical partners , who will pull expertise to fix Boeing Classic and new generation private jets, military and para military planes and other aircraft types.

He said the new facility , will assist to reduce airlines mortality, which has over the years been bogged down by prohibitive cost of aircraft maintenance.

Balami said : “ Over the years, the huge cost of aircraft maintenance has been a prime contributor to the failure of so many airlines. This has resulted in capital flight and fleet erosion, all of which can be mitigated and eliminated with licensed local maintenance support. “

He said aircraft maintenance costs continue to rise because of oscillating exchange rate.

Balami assured that with pool of local expertise the firm parades , it will deliver a facility in Nigeria to assist African operators.

He airlines lose a lot of money if a single Boeing 737 is grounded awaiting maintenance.

He said the owners of offshore facilities expected the affected operator to pay more N100,00 daily, a development he said, impacts negatively on the airline.

Balami said the facility will save indigenous carriers additional costs, including navigational charges; crew salaries and other expenses, which they would have incurred, if the aircraft was ferried abroad for major maintenance.

He said the aircraft repair centre would be available in Abuja in a few weeks delivering cost reduced international class services.

Balami said: “Our new hangar in Abuja can take two Boeing 737 at the same time. Some of the experts in the organisation have worked for more than 30 years at local and international levels.

“ Our technical partners from Jordan, United States and Europe bring more than 50 years combined in operations on aircraft heavy maintenance, ranging from C-D Checks to aircraft paintings, among others.

“Together, we have determined to ensure aircraft serviceability across Africa. This MRO will create hundreds of jobs in the next few months as well stimulate opportunities across the sector supply chain.”

Also, an aviation expatriate and founding Director of 7 Star Global Hangar, Dr Abiodun Asekun, said the facility is a step in the right direction.

Asekun said as former Managing Director of American Airlines, he would bring his experience as manager of the biggest maintenance repair organisation in the world to bear on the utilisation of the facility.

He said: “The approval of the licence by NCAA is a right step in the right direction. We hope this facility will play a major role in support of and close working partnership with the new Nigerian National carrier scheduled to commence operations, very soon.

“This facility will be the only stand alone MRO in West And Central Africa with huge potentials. This is key because there is no parking space in the air, we have put together the best brains in the aircraft maintenance, managements, engineering, modifications, fabrications, training, design and manufacturing on the ground.

He said: “This is a new dawn in the Nigerian and African aviation sectors that will save the country huge amount of money and urged the government to provide enabling environment to ensure survival of the MRO.”

Also, 7 Global Hangar Accountable Manager, Ibrahim Nock, an aircraft engineer, said the firm could not have come at a better time than when government is planning to set up a national carrier.

Nock said: “The national carrier fleet are encouraged to take advantage of our facility, to generate jobs for the vast number of talented but jobless engineers across the country.

‘’This is also an opportunity to stretch the best aviation enginerrs at home and across the Diaspora – many of whom have made up their minds to return home to support the great efforts of the government.’’

Speaking recently in Lagos, Sirika said the government would continue to encourage investors willing to set up MRO in Nigeria.

He said: “It is noteworthy that Boeing 737 aircraft are the most aircraft fleet operated in Nigeria by most indigenous airlines, prior to now and in the lifespan of other administrations. Nigeria experienced huge capital flight of nothing less than $1.8million and $3million per Boeing aircraft that left our shores for C-Checks and there are more than 30 of such aircraft operating so you do the arithmetic.”

Also, Air Peace Chairman Allen Onyema called on the government to approve indigenous operators to run MRO facilities.

He said: “What I will advise the government to do is to facilitate the establishment of more maintenance hangars that can do up to D-check and the world will be coming here to maintain their plane and we will be getting foreign exchange.

‘’Air Peace alone spends huge foreign exchange to maintain our aircraft overseas. None of our planes come back with less than $3 million for every C-check because we do comprehensive C-checks.

“This year alone, we have sent about seven aircraft overseas for C-check; that is over $21 million from one airline alone. You can imagine if the hangar is situated in Nigeria. If this money is domiciled here and used here, it will create a lot of jobs. So, we need a maintenance hangar.’’

Former Chief Executive Officer, Aerocontractors of Nigeria, Captain Fola Akinkuotu, said the high cost of C-check usually force some domestic carriers to abandon their airplanes in countries of repairs.

Akinkuotu said airlines could make significant savings if maintenance facilities were available in-country.

Also, African Business Aircraft Association (AFBAA) Chairman Nick Fadugba has advised operators to leverage their operations through the pooling of fleet, training of personnel and co-running a maintenance repair and overhaul facility.

According to him, the government can support such initiatives through the allocation of land around airports at affordable cost.

He urged FAAN to adopt a policy of giving land at little or no cost to attract investments in tooling hangar and manpower training.

Noting that Africa’s MRO business should be exploited, Fadugba lamented the absence of MROs in West Africa, taking cognizance of aircraft type available for line maintenance, and the possibility of business for potential investors.

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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