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Integrating Africa’s Air Connectivity

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  • Integrating Africa’s Air Connectivity

The anticipated prosperity of Africa’s 1.25 billion people and projected economic growth of over $6.36 billion is hanging in the balance.

Reason: Africa’s economic growth is being threatened by challenges not limited to hurdles of connecting flights among its major capitals.

It is for this reason that experts have canvassed a single African transport management to make it seamless for carriers on the continent to operate flights among capitals without restrictions.

That drive received a boost last week when Nigeria’s Overland Airways operated a flight between Lagos and Niamey, the Nigerien capital in Northwest Africa.

Overland is the only carrier to operate the Atlantic/Sahel/Sahara route after the liquidation of Nigeria Airways over 15 years ago.

According to Overland Airways Managing Director, Captain Edward Boyo, the operations were part of efforts to activate the principles of the Single African Air Transport Market (SAATM), put together by African governments and heads of state at the African Union Summit in Addis Ababa.

Boyo said the flight between Niamey and Lagos would boost economic activities, including trade, investment and tourism on the Atlantic and Sahel and Sahara regions.

He said it was part of efforts to boost economic integration among African countries.

Boyo said besides plans to connect passengers from Niger into Overland route network in Nigeria, saying the airline will link passengers into Abuja, Kano, Katsina, Calabar, Enugu and other destinations.

The Overland Airways boss also commended the civil aviation authority on Niger Republic in granting the necessary approval for the airline to start flights into the West African country.

He said: “We believe in African economic integration that would assist to bind business, social and cultural values.

“Because we see air transport as an intangible economic infrastructure, we plead government support through conducive operating environment to sustain this flight.

” We ask the government of Niger Republic to support air transport infrastructure to open up the country.”

Boyo said soon, Overland would also connect flights to Chad Republic and Accra, Ghana to integrate many countries into its West African route network.

He said: “Flight connectivity challenges in West Afruca will not be resolved in one day. That explains our over one decade plan to resolve this challenge in our business and expansion plan.

” What we have done to consolidate our operations and continue to grow from Nigeria, which is big market into other West African countries. Niamey into Sokoto, Abuja sector is already being pursued. Once we get the regulatory approvals, we will plan our entry into Chad Republic and Accra in Ghana.”

Also, Minister of Transport, Niger Republic, Mahamadou Karidio said the flight by Overland Airways would assist to open up Niamey to other West African capitals.

He said they look forward to Overland Airways to connect Niamey to the world through safe, reliable flight services.

Karidio said the flight service was a demonstration of the relationship between the two countries to boost West African economy.

He said: “It took many years for this to materialise and we have constantly made efforts to improve aviation infrastructure through our commitment to build an international airport.

“We believe one of the ways to attract airlines to fly into our country is by having a good airport. With this partnership with Overland Airways flights are now open to Abuja, Cotonou and other capital cities in West Africa.

“We need to continuously improve air transport because Niger Republic is a landlocked country. We will rely on Overland Airways to connect Niamey to the world. This flight service will have economic impact on businesses in the two countries by creating opportunities for business, investment and tourism.

” It will create flight connectivity across the West African region and also create opportunities for regional and long haul connections for flights from Niger Republic into United States, Europe and other parts of the world.

” We hope Overland Airways will increase the flight frequency and offer competitive fares to end the challenge of over 16 years that will have grappled with how to get direct flights into Niamey.”

Also, Nigeria’s Ambassador to Niger Republic, Attahiru Haliru said the flight services would bring people from both countries together for business , trade and investment, which he said a good tool for diplomatic relationship.

Haliru said: ”Flight services between Nigeria and her neighbour Niger, will not only create job opportunities but will increase the volume of commerce, trade and the gross domestic product of both countries.

Nigerians Association in Niger Republic President, Ellias Okute said the introduction of direct flight services between Lagos and Niamey would be a huge relief to the business community in both countries.

Okute said: “It is a great relief in addressing the difficulties we experience traveling between the countries.

“Before now, we spend more travel time, connecting flight through Togo, Lome before getting to Niamey.

“This in the past led to loss of lives vets through accidents on the road and robbery attack. But, we can now flight from Lagos to Niamey to Lagos. We urge Overland Airways to, sustain the flight , so that we in the business community could exploit opportunities in Niger.”

Also, Niger’s Civil Aviation Authority (ANAC) Director-General, Ahmed Ayaha said Overland Airways met the regulatory requirements for the operations.

He said with Overland Airways safety and technical rating as an International Air Transport Association (IATA)-certified carrier, he was confident of safe operations in line with international standards and recommended practices.

Ayaha said: ”As an IATA operations safety certified airline with good safety record, its operations in terms of safety and security is guaranteed.”

Also, Overland Airways Chief Operating Officer, Mrs Aanu Benson said the twice weekly flights would connect Lagos, Cotonou and Niamey.

She said: “Our Lagos – Cotonou – Niamey flight offers opportunities for travelers in Niger Republic to get to Nigeria and Benin Republic for business and pleasure in addition to connecting regional and long haul flights from Lagos to other parts of Africa, Europe United States, Middle East and Asia.

“The flight will connect the Sahel region to the dense business and tourism opportunities in Cotonou and Lagos both in coastal West Africa thereby stimulating trade and commercial activities in the three countries.”

She further said: “We must bring to life the whole essence and meaning of Economic Community of West African States in the region with quality flight services across the network.

“The Lagos-Cotonou-Niamey flights will connect traders, business people and holiday makers to the rich farming livestock industry, leather industry and milk industry in Niger Republic.”

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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Crude Oil

Oil Prices Decline for Third Consecutive Day on Weaker Economic Data and Inventory Concerns

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Crude Oil

Oil prices extended their decline for the third consecutive day on Wednesday as concerns over weaker economic data and increasing commercial inventories in the United States weighed on oil outlook.

Brent oil, against which Nigerian oil is priced, dropped by 51 cents to $89.51 per barrel, while U.S. West Texas Intermediate crude oil fell by 41 cents to $84.95 a barrel.

The softening of oil prices this week reflects the impact of economic headwinds on global demand, dampening the gains typically seen from geopolitical tensions.

Market observers are closely monitoring how Israel might respond to Iran’s recent attack, though analysts suggest that this event may not significantly affect Iran’s oil exports.

John Evans, an oil broker at PVM, remarked on the situation, noting that oil prices are readjusting after factoring in a “war premium” and facing setbacks in hopes for interest rate cuts.

The anticipation for interest rate cuts received a blow as top U.S. Federal Reserve officials, including Chair Jerome Powell, refrained from providing guidance on the timing of such cuts. This dashed investors’ expectations for significant reductions in borrowing costs this year.

Similarly, Britain’s slower-than-expected inflation rate in March hinted at a delay in the Bank of England’s rate cut, while inflation across the euro zone suggested a potential rate cut by the European Central Bank in June.

Meanwhile, concerns about U.S. crude inventories persist, with a Reuters poll indicating a rise of about 1.4 million barrels last week. Official data from the Energy Information Administration is awaited, scheduled for release on Wednesday.

Adding to the mix, Tengizchevroil announced plans for maintenance at one of six production trains at the Tengiz oilfield in Kazakhstan in May, further influencing market sentiment.

As the oil market navigates through a landscape of economic indicators and geopolitical events, investors remain vigilant for cues that could dictate future price movements.

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Commodities

Dangote Refinery Cuts Diesel Price to ₦1,000 Amid Economic Boost

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Aliko Dangote - Investors King

Dangote Petroleum Refinery has reduced the price of diesel from ₦1200 to ₦1,000 per litre.

This price adjustment is in response to the demand of oil marketers, who last week clamoured for a lower price.

Just three weeks ago, the refinery had already made waves by lowering the price of diesel to ₦1,200 per litre, a 30% reduction from the previous market price of around ₦1,600 per litre.

Now, with the latest reduction to ₦1,000 per litre, Dangote Refinery is demonstrating its commitment to providing accessible and affordable fuel to consumers across the country.

This move is expected to have far-reaching implications for Nigeria’s economy, particularly in tackling high inflation rates and promoting economic stability.

Aliko Dangote, Africa’s richest man and the owner of the refinery, expressed confidence that the reduction in diesel prices would contribute to a drop in inflation, offering hope for improved economic conditions.

Dangote stated that the Nigerian people have demonstrated patience amidst economic challenges, and he believes that this reduction in diesel prices is a step in the right direction.

He pointed out the aggressive devaluation of the naira, which has significantly impacted the country’s economy, and sees the price reduction as a positive development that will benefit Nigerians.

With this latest move, Dangote Refinery is not only reshaping the fuel market but also reaffirming its commitment to driving positive change and progress in Nigeria.

The reduction in diesel prices is expected to provide relief to consumers, businesses, and various sectors of the economy, paving the way for a brighter and more prosperous future.

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Crude Oil

IEA Cuts 2024 Oil Demand Growth Forecast by 100,000 Barrels per Day

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Crude Oil

The International Energy Agency (IEA) has reduced its forecast for global oil demand growth in 2024 by 100,000 barrels per day (bpd).

The agency cited a sluggish start to the year in developed economies as a key factor contributing to the downward revision.

According to the latest Oil Market Report released by the IEA, global oil consumption has continued to experience a slowdown in growth momentum with first-quarter growth estimated at 1.6 million bpd.

This figure falls short of the IEA’s previous forecast by 120,000 bpd, indicating a more sluggish demand recovery than anticipated.

With much of the post-Covid rebound already realized, the IEA now projects global oil demand to grow by 1.2 million bpd in 2024.

Furthermore, growth is expected to decelerate further to 1.1 million bpd in the following year, reflecting ongoing challenges in the market.

This revision comes just a month after the IEA had raised its outlook for 2024 oil demand growth by 110,000 bpd from its February report.

At that time, the agency had expected demand growth to reach 1.3 million bpd for 2024, indicating a more optimistic outlook compared to the current revision.

The IEA’s latest demand growth estimates diverge significantly from those of the Organization of the Petroleum Exporting Countries (OPEC). While the IEA projects modest growth, OPEC maintains its forecast of robust global oil demand growth of 2.2 million bpd for 2024, consistent with its previous assessment.

However, uncertainties loom over the global oil market, particularly due to geopolitical tensions and supply disruptions.

The IEA has highlighted the impact of drone attacks from Ukraine on Russian refineries, which could potentially disrupt fuel markets globally.

Up to 600,000 bpd of Russia’s refinery capacity could be offline in the second quarter due to these attacks, according to the IEA’s assessment.

Furthermore, unplanned outages in Europe and tepid Chinese activity have contributed to a lowered forecast of global refinery throughputs for 2024.

The IEA now anticipates refinery throughputs to rise by 1 million bpd to 83.3 million bpd, reflecting the challenges facing the refining sector.

The situation has raised concerns among policymakers, with the United States expressing worries over the impact of Ukrainian drone strikes on Russian oil refineries.

There are fears that these attacks could lead to retaliatory measures from Russia and result in higher international oil prices.

As the global oil market navigates through these challenges, stakeholders will closely monitor developments and adjust their strategies accordingly to adapt to the evolving landscape.

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