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Aviation: Increase in Operational Cost, Fuel Price May Raise Domestic Flight Fares

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The Federal Government of Nigeria has been charged to offer support to domestic airlines to avert the looming airfare hike in the aviation sector.

Investors King gathered that the airline tickets may rise as a result of the increase in aviation fuel which now costs N400 per litre and other operational costs which include airport charges.

Addressing journalists in Lagos on Wednesday, during the first anniversary of the United Nigeria Airline, Dr Obiora Okonkwo, the Chief Executive Officer explained that domestic airlines are operating in a difficult environment.

He stated that the cost of operations in the aviation sector is hindering growth as well as sunset operations at most airports where planes can not land at night.

“The industry has witnessed a lot of inconsistencies. The first ever flight we operated, we paid N190 for the first litre of aviation fuel. And as at today, aviation fuel is N400 per litre. The base price we sold ticket when we started was N23,000 when aviation fuel was N190. 

“The first foreign exchange transaction we did when we started was N340. But now, when it is available, it is N450 but when it is not available, the alternative black market cost is N570. It might surprise you to know that despite such increase, today, because of the market situation, you still can buy your ticket at N20,000 or N21,000.

“What this means is that since all the airlines are buying from the same market, any ticket at this rate is being subsidised by the airlines. Aviation fuel, depending on how it is applied in the aircraft, can easily become 30 to 40 per cent of the cost component of your operations,” Okonkwo said.

The CEO added that the charges paid to agencies and associations within the aviation sector need to be checked as most airlines are left with little penny after deductions, else an increase in airfare will be inevitable.

“For every ticket you sell, you pay five percent to the Nigerian Civil Aviation Authority (NCAA), there are other deductions to the Nigerian Airspace Management Agency (NAMA), FAAN and airport owners. By the time you remove all these deductions, you have to use your money to finish all of them and also take care of other operational needs. The only thing that covers these costs is the sales of tickets and how much these tickets are sold are very important.

“There would have to be an increase in fare. However, if some seats are lower in prices, you can cover it by the cost of higher seats. It is natural, so it is not what is discussed. Airline operators have resolved to find solutions to this because dealing with these problems individually has not yielded the desired results,” Okonkwo concluded.

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Nigeria Immigration Service Launches New Passport Renewal Mobile App, Issues Registration Guidelines

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The Nigeria Immigration Service (NIS) said it has created a Mobile Application for individuals to renew their International Passports from the comfort of their homes without necessarily visiting its offices.

The agency, in a video information watched by Investors King, which it posted on its X handle on Thursday night, disclosed that those who applied for passport renewal online get them delivered to their homes and other addresses they have chosen.

The management of the agency stated that the digital innovation is part of its continued efforts to serve the Nigerian public more efficiently and create a functional system that meets global standards.

Tagged: “A New Contactless Passport Application and Issuance Process,” the Nigeria Immigration Service (NIS) said as from November 1st, 2024, individuals who apply to renew their international passport will be able to use the mobile app and carryout the registration and application procedures from the comfort of their homes without having to visit any NIS office.

“Simply visit Google Play Store on your Android, App Store on IOS, and Window Devices and check for Nigeria Immigration Service Mobile App, click on it and download. You can also visit www.passport.immigration.gov.ng on your web browser.

“After downloading the Nigeria Immigration Mobile App on your mobile device, login on to www.passport.immigration.gov.ng, on your web browser; only use the following steps to get registered and apply to renew your passport:

“Step 1: Create a profile using a valid email.

Step 2: Complete eligibility test.

Step 3: Input your NIN and current passport number

Step 4: Fill out your bio data and upload relevant supporting documents such as NIN slip, certificate of local government of origin, birth certificate, among others.

Step 5: Proceed to take your biometric using your mobile phone fingerprint.

Step 6: Review all your information.

Step 7: Then, make payments.

Step 8: Finally submit your application.

“Now wait for your passport to be available and it will be delivered to your chosen address within the stipulated timeline,” the information revealed.

The NIS further explained how the procedures for renewal would be done in phases, stating: Phase 1: Canada – Nov. 1
Phase 2: UK, USA, Italy – Nov. 15
Phase 3: Nigeria & the rest of the world – Dec. 1.”

It added, “Thanks to the renewed hope agenda of Bola Ahmed Tinubu that cares for every Nigerian where they live, work and play.

“The Nigeria Immigration Service (NIS) with the supervision of the Hon. Minister of Interior, Hon. Olubunmi Tunji-Ojo, the leadership of the Controller General, CGI Kemi Nanna Nandap, committed to improving passport application processes and making life easy for all Nigerians.

“Please note that this new application platform is for Passport Renewal Only.”

Meanwhile, individuals who reacted to the new development commended the NIS for coming up with the mobile app for international passport renewal, saying it would contribute in making the process seamless and easier.

They however suggested that the NIS management expunge upload of  supporting documents such as certificate of local government of origin and birth certificate since they have been included in the bio data earlier supplied during initial application for the passport.

One of those who commented simply identified self as @Justice_Israell, wrote: “Nigeria Immigration officers won’t like this because now they can no longer extort from citizen as every financial transaction is done online.

“I love this initiative. Nigeria immigration office is like a market place and this corruption is deeply rooted even to the officials at the top.”

“Why requesting for Birth and Local Government certificates for passport renewal? How did the person get his passport in the first place? Did they not use all these documents for first passport? This is not necessary, except you make it optional. Thank you,” another X user identified as @femoscorpion131 remarked.

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Air Peace Denies Lagos-Abuja Fare Increase to ₦200,000 Amid Viral Reports

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Air Peace has denied plans to raise fares from Lagos to Abuja from N114,000 to N200,000 following a leaked viral report.

This report, published by numerous media outlets claimed that Air Peace would raise its one-way flight fare to ₦200,000 effective November 1, 2024.

This was confirmed by a senior airline staff member who wished to remain anonymous.

The source clarified that the memo was intended for private partners but was unintentionally leaked to the public.

“Our intention was for the memo to remain strictly within our network of private partners, but it unfortunately leaked.

“Indeed, the fare review will take effect from November 1, 2024,” Nairametrics quoted the anonymous source.

The memo reads in part, “This is to inform you that our domestic fares have been reviewed.

“The new fares are effective for flights from 1st November 2024. The previous fares remain available for flights up to 31st October 2024”.

However, a statement by the airline on Saturday, October 26, has laid the rumours to rest.

Refuting the viral claim, the airline said the report was false and not from the firm.

Air Peace emphasized that any adjustment regarding the firm’s pricing will be published via its verified handles and urged Nigerians to rely on these verified channels to avoid misinformation.

The statement read, “We would like to categorically state that this information is false and did not originate from Air Peace.

“We have not released any official statement regarding a fare increase as described, and any announcements regarding our pricing would only be made through our verified channels. We encourage our valued customers and clients to rely exclusively on these platforms for accurate updates and information on fares.”

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Kogi Govt Secures FG’s Approval For International Airport Project

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Kogi State under the leadership of Governor Usman Ododo has secured the approval of the Federal Ministry of Aviation and Aerospace Development to construct an international airport in the Zariagi area of the state.

This was made known in a statement on Friday by the State Commissioner for Information and Communications, Kingsley Fanwo.

Fanwo revealed that the approval for the Kogi State International Airport which is a top priority for Governor Ododo’s government was confirmed through a letter dated October 9, 2024.

He noted that besides the potential to boost the state’s economy, the project will tackle unemployment in the state with the creation of jobs and will also push the state to the global scene.

The statement revealed that the governor expressed thanks to President Bola Tinubu and the aviation minister for approving the project which has the capacity to develop the state.

He disclosed that the aviation team sent to inspect the location of the project were satisfied. They also approved the state government’s plan regarding the project.

The Commissioner stated, “The Ododo Administration has considered it a top priority for Kogi State to have an International Airport and join the league of the aviation hub. The strategic location of the state is no doubt, an invaluable advantage in harnessing the aviation service market as the centre of the nation.

“The project will not only boost the economy of the State, it will also create jobs and bring the potential of the state to the global scene.

“The Governor is determined to hire the best hands in the industry to make the project a huge success. As you are aware, aviation is an industry of trust and standards.

“We thank President Bola Ahmed Tinubu, GCFR and the Aviation Minister for the historic approval that will help to further develop Kogi State. We want to also say that the Airport will also have capacity for Cargo as that is one of our key focuses in the project.”

“Zariagi is a very strategic community that already boasts of an airstrip. The team from the Ministry of Aviation and Aerospace Development was satisfied with the location and the plans of the Kogi State Government on the project.”

In related news, the Kogi State government on Monday, October 7 announced an immediate salary increase for civil servants in the state.

According to the governor, the new wage of N72,500 aims to help civil servants in Kogi cope with the economic hardship in the country and support families in the state.

The Governor also announced a one-year suspension of the Pay-As-You-Earn (PAYE) tax.

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