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Infrastructure Deficit Bane of Aviation Sector Growth –FG

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hadi-sirika
  • Infrastructure Deficit Bane of Aviation Sector Growth –FG

The backwardness in the aviation sector is due to the dilapidated or absence of infrastructure in the industry, the Federal Government declared on Tuesday.

It, however, noted that the potential of aviation in Nigeria and Africa was enormous, as this was why stakeholders from across the world converged in Abuja to address the challenge of infrastructure in the sector.

The Minister of State for Aviation, Hadi Sirika, disclosed this while speaking on the sidelines of the International Civil Aviation Organisation Workshop on Infrastructure Gap Analysis in Abuja.

He said, “The potential of aviation in Africa is enormous and it needs to be harnessed and well coordinated. Africa has over a billion people that are vast and wide that support aviation but where absence or dilapidated infrastructure is causing backwardness in the progress of the industry.

“I believe this workshop will afford us the opportunity to be able to carry out the right studies and analysis and then we will attack the problem head-on.”

The minister added, “The infrastructural deficit is a lot, beginning from airports and sounds, with the facilities at the airports, the aircraft, equipment handling, etc. There is an absence of everything that makes aviation works.”

Sirika noted that stakeholders in the industry from across the world were in Abuja in November 2017 to discuss the financing of aviation infrastructure.

He stated that financial institutions, government, airport owners, airlines and others participated in the meeting, adding that “the outcome of that is that we should determine when we should carry out the gap analysis which will form the basis for funding of aviation infrastructure in Africa.”

The President, ICAO, Olumuyiwa Aliyu, explained that Africa currently accounted for four per cent of global air transport services and had the highest potential for growth out of the other four global regions.

He, however, observed that despite the large population growth, the potential had not been translated into strong and significant development in African states.

Aliyu stated that the current global traffic figure showed that 4.1 billion passengers were transported on 38 million flights and that projections were that this would double in the next 15 years.

“Passenger and traffic specifically in the African region are expected to grow respectively by 4.3 and 3.8 per cent annually through 2035,” he stated.

He added, “When we consider the potential of this growth, it becomes apparent that growth in traffic must be accompanied by commensurate investment and commitment to the new and modernised airport and air navigation infrastructure.”

“It is, therefore, urgent for Africa to address its aviation infrastructure gaps giving current awareness of how air connectivity has become such a unique and indispensable catalyst to the socio-economic growth of this continent.”

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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