Connect with us

Economy

Nigeria, India Bilateral Air Service Agreement

Published

on

minister-of-state-for-aviation-senator-hadi-sirika
  • Nigeria, India Bilateral Air Service Agreement

Recently the federal government signed a Bilateral Air Service Agreement (BASA) with the Republic of India in order to deepen flight operations with the Asian country.

This was disclosed by the Minister of State, Aviation, Senator Hadi Sirika through his twitter handle, as plans to reach this partnership had been afoot in the last six months.

While it is necessary to reach this agreement with India because of the increasing volume of trade, the increasing number of Indians doing business in Nigeria and the fact that India has provided succour to many sick Nigerians who could not be treated in the country, there is still apprehension about the agreement; whether like many others signed in the past, it was lopsided against the interest of Nigeria and her airlines.

India benefits most from medical tourism by Nigerians than anywhere in Africa, findings revealed that the major job of some Indian companies in Nigeria is to facilitate medical checks and movement of patients from the country to the world’s second most populated country.

Aviation industry consultant and CEO of Aglo Limited, Tayo Ojuri, said there is a lot of health tourism from Nigeria to India and that a lot of Indians are doing business in Nigeria.

Ojuri added: “Nigeria and India also have large population and market strata. There are some levels of balance of trade between the two countries.”

Sirika however, did not give details of the bilateral agreement in the information he made public but it has to be noted that currently there is no direct flight service between Nigeria and India.

Many Nigerians that travel connect flights in Addis Ababa or in Dubai but the federal government had designated Air Peace to Mumbai and with this agreement it is hoped that Indian carriers would be coming to Nigeria too.

But many industry observers are sceptical that many bilateral agreements entered into by Nigeria are always skewed against the country.

That explained why aviation experts have variously advised the federal government to review its BASA with many countries whose airline operate into Nigeria.

This is critical and sobering when it is considered that that foreign airlines generated revenues from ticket sales of over $3.2 billion in the last two years from Nigeria but no Nigerian airline benefitted from such long-haul operations.

The last time he was in Nigeria, the international aviation consultant, Chairman of African Business Aviation Association (AfBA) and the former Secretary-General of Africa Airlines Association (AFRAA), Nick Fadugba, said most of the BASA agreements signed between Nigeria and other countries are largely tilted against Nigeria and that it would be difficult to begin to renegotiate them.

He, however, said Nigeria should be careful henceforth and ensure that new BASA deals don’t follow the old ways.
“When I look at BASA in Nigeria, it is like we opened the stable door and the horse has gone and to catch it back it is going to be very difficult. We entered into BASA agreements with numerous countries, the principle of BASA is reciprocity and yet we entered into BASA and we are not able to reciprocate,” he said.

So industry operators are demanding that the federal government should make available the details of the agreement it recently signed with India to ensure that Nigeria is not short-changed.

They also stated that Nigeria should ensure that its own airlines benefit from such agreements and not just designating them to foreign destinations, adding, “other governments follow their airlines to do the leg work.”

The Director of Research and Strategy at Zenith Travels, Fidel Olu Ohunayo, said governments that care for the interest of their indigenous carriers must ensure that the interest of their home airlines are protected first but in Nigeria government officials sign agreements that are tilted against the interest of Nigerian operators.

Ohunayo, said there is no way Nigerian airlines can survive if government does not protect their interest as other countries do; noting that the priority of governments in aviation is to protect their own.

“British Airways has input in all British government’s bilateral, hence they get good slots in other countries, while our own carriers battle Heathrow or Gatwick airport management for slots and space which should have been factored in the BASA agreement Nigeria signed with UK,” he said.

Recently the President of Lagos Chamber of Commerce and Industry, Babatunde Ruwase said the trade volume between Nigeria and India had hit over $20 billion, noting that the trade had brought about strong bilateral relationship.

It is estimated that Nigeria spends about $1.3 billion on overseas medical treatment, including kidney and heart diseases and many of them seek such treatment in India.

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.

Continue Reading
Comments

Economy

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

Published

on

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.

Continue Reading

Economy

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

Published

on

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.

Continue Reading

Economy

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

Published

on

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.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending