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FAAN Shuts Kebbi Airport Over N33m Debts

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The Federal Airports Authority of Nigeria (FAAN) has concluded plans to close the Kebbi State-owned airport over its indebtedness.

The Nigerian Airspace Management Agency (NAMA) by issuing Notice To AirMen (Notam) to airlines from flying into the airport as from midnight yesterday when FAAN is expected to withdraw its services at the airport.

According to a source close to FAAN, from 12 midnight yesterday, FAAN would withdraw all its fire service and security personnel from the airport.

The source further disclosed that the Kebbi state government owes FAAN over N33m and has refused to pay since January this year despite a series of letters to the state.

“We are closing the Kebbi airport by 12 midnight Monday, they are indebted to us and we have written so many letters to the governor and there was no response and NAMA has already issued a NOTAM on Friday to inform all airlines flying into the airport to keep off,” the source said.

This is not the first time FAAN would take such action. In 2019, FAAN closed the Gombe and Kebbi airports as a result of over N700 million debts.

FAAN had issued a notice to both private and state-owned airports in Nigeria to settle their debts on or before April 24. The agency had said its services would be withdrawn if they failed to clear their debts.

“The authority shall be constrained to commence the implementation of sanctions at the expiration of this notice if the organisations fail or refuse to pay up as advised,” FAAN had said.

“In view of the above, the authority hereby notifies private airport operators that the services of our Aviation Security and Aerodrome Rescue and Fire Fighting personnel will no longer be available for the operations of their airports with effect from May 1, 2021.

“This action has become imperative as the management of Gombe Airport is indebted to the authority to the tune of N607. 9m, while Kebbi and Bebi airports are indebted to the tune of N124.5m million and N76.8m respectively.”

In 2020, the Federal Government had taken over the management of Osubi airport in Delta over alleged debts and mismanagement.

The Federal Government in July re-opened commercial flights at the airport.

The federal government shut down commercial operations at the airport in February 2020, following the inability of the former operator of the facility, Shorelines Oil Services Limited, to run it optimally.

The Airport is now being managed by the Federal Airport Authority of Nigeria.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Canada Revolutionizes Express Entry: Introduces Targeted Draws to Address Labour Shortages

Canada’s Immigration Minister, Sean Fraser, has recently announced the implementation of category-based selection draws for candidates applying through the Express Entry system.

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Canada’s Immigration Minister, Sean Fraser, has recently announced the implementation of category-based selection draws for candidates applying through the Express Entry system.

This new approach aims to prioritize individuals with strong French language skills and work experience in specific fields that are in high demand across the country.

Under the revised system, candidates who possess expertise in healthcare, science, technology, engineering, and mathematics (STEM), trades such as carpentry, plumbing, and contracting, transportation, and agriculture and agri-food will receive preferential treatment in the selection process. These changes are expected to take effect later this summer to address the pressing need for skilled workers in various sectors across Canada.

Minister Fraser emphasized that these modifications to the Express Entry system are a crucial step towards meeting labor shortages reported by employers nationwide. By inviting more skilled professionals from targeted professions, Canada aims to support its economic growth while also fostering the vitality of French-speaking communities outside of Quebec.

The immigration minister highlighted the significance of immigration in alleviating labor shortages and enhancing the prominence of the French language within minority communities.

He stated, “Everywhere I go, I’ve heard loud and clear from employers across the country who are experiencing chronic labor shortages. These changes to the Express Entry system will ensure that they have the skilled workers they need to grow and succeed. We can also grow our economy and help businesses with labor shortages while also increasing the number of French-proficient candidates to help ensure the vitality of French-speaking communities.”

The introduction of category-based draws follows amendments made to the Immigration and Refugee Protection Act in June 2022, granting the minister the authority to select immigrants based on specific characteristics aligned with Canada’s economic priorities. The categories were determined through extensive public consultation with provinces, territories, industry representatives, unions, employers, worker advocacy groups, settlement provider organizations, and immigration researchers and practitioners.

To maintain transparency, the Immigration, Refugees, and Citizenship Canada (IRCC) will provide annual reports to parliament detailing the categories selected, the rationale behind the choices, instructions for establishing each category, and the number of invitations issued for each category.

Express Entry, launched in 2015, is Canada’s system for managing applications under three economic immigration programs: the Federal Skilled Workers Program, the Federal Skilled Trades Program, and the Canadian Experience Class. Candidates are evaluated based on various factors such as work experience, language proficiency, occupation, education, and more, using the Comprehensive Ranking System (CRS). Applicants with the highest CRS scores have the greatest likelihood of receiving an Invitation to Apply for permanent residence.

In summary, Canada’s adoption of targeted category-based draws for Express Entry candidates reflects its commitment to addressing labor shortages, supporting economic growth, and bolstering French-speaking communities across the country. These changes aim to ensure a more responsive immigration system that aligns with Canada’s social and economic needs, while also attracting highly skilled individuals who can contribute to the country’s prosperous future.

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Nigeria’s Aviation Industry Records Significant Growth in Recent Years Despite Challenges

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Nigeria’s aviation industry has recorded significant growth in recent years, with an increase in the number of aircraft, despite several challenges that have plagued the sector.

While maintaining a growth trajectory, reports reveal that the total number of aircraft in Nigeria has surged by 100% in 8 years, while the country’s number of airports has also increased significantly, currently numbering up to 40.

Speaking on the growth of Nigeria’s aviation sector, Director General and Chief Executive Officer NCAA, Capt. Musa Nuhu while speaking at the Federal Airports Authority of Nigeria (FAAN) National Aviation Conference (FNAC) with the theme: “Sustainability of the Aviation Industry In Nigeria”, stated that despite the challenges the industry has faced in recent years, ranging from regulatory, institutional and structural challenges, especially the breakout of the Covid-19 pandemic, aviation in Nigeria has so far been on a growth trajectory.

Mr. Nuhu further disclosed that when the Buhari administration came on board in 2015, there were only 34 Air Transport Licenses (ATL), but today, the number has increased to 73. He added that commercial certificates were just 196 but skyrocketed to 320 at present. Also, airstrips across the country had moved from 77 to 92, indicating an increase of 15 within the last 8 years.

Investors King understands that the aviation sector in Nigeria is one of the most rewarding for investors. The growing demand for aviation services in the country has encouraged many airlines to establish or plan to establish operations in Nigeria.

In 2022, the industry experienced a lot of developments as it worked to overcome various challenges it faced. A very notable development is the assent of the Civil Aviation Act 2022 by President Muhammadu Buhari.

The president stated that the implementation of the civil aviation act which is a critical aspect of ICAO will further strengthen the sector for improved safety.

Experts have disclosed that the adoption of the Civil Aviation Policy which centered on liberalization and Public Private Partnership (PPP) initiatives by the current administration had resulted in significant growth of the industry, including huge investments in the Nation Airports and has increased capacity of the airports and growth of the domestic airline industry.

They, therefore, emphasized that it is necessary for Nigeria’s aviation sector to remain sound, harmonized, and remain in compliance with the standards and recommended practices in the sector, noting that it is 100 percent regulated and Nigeria must comply with global practices.

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International Airfares Surge in Nigeria as IATA Exchange Rate Jumps 37.5%

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Travelling by air from Nigeria to other parts of the world has become significantly more expensive in recent weeks as the International Air Transport Association (IATA) has approved an exchange rate of N634/dollar for flight tickets sold in Nigeria.

This represents a 37.5% increase over the official exchange rate set by the Central Bank of Nigeria (CBN), which is pegged at N461.06/dollar.

This latest increase in the IATA exchange rate has led to a corresponding rise in airfares on the Nigerian route, which is set to worsen the financial burden on travellers ahead of the peak summer travel season.

It has also compounded the existing problem of foreign airlines being unable to repatriate their ticket sale proceeds out of Nigeria, due to a shortage of dollars from the CBN.

To mitigate the impact of blocked funds, international airlines in Nigeria have reportedly closed their low-price ticket inventory, further pushing up airfares.

A few months ago, foreign airlines sold tickets at N444/dollar in line with the CBN official exchange rate. However, in recent weeks, the IATA has reviewed the exchange rate for ticket sale in Nigeria to N462/dollar, N551/dollar, N582/dollar, N610/dollar and currently N634/dollar, even though the CBN official exchange rate has remained around N461/dollar.

While IATA officials justified the exchange rate increases, saying they were in line with the spot rates the CBN has been selling foreign exchange to foreign airlines in Nigeria for the repatriation of their ticket sale proceeds, travellers are likely to feel the pinch of the rising airfares.

Despite the significant increases in the IATA exchange rate, the amount of trapped funds in Nigeria has yet to reduce, according to the report.

As the summer travel season approaches, it remains to be seen how the situation will evolve and whether alternative solutions will emerge to address the challenges facing the aviation industry in Nigeria.

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