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How Nigeria Lost $2.5bn to Foreign Countries Due to Lack of MRO

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The Federal Airports Authority of Nigeria (FAAN) at the National Aviation Conference on Tuesday disclosed that Nigeria lost $2.5bn in Maintenance, Repair and Overhaul (MRO) services on Nigerian aircraft and other facilities in 2021.

FAAN explains that the absence of an MRO facility in Nigeria was costing the country billions of dollars annually.

FAAN Managing Director Rabiu Yadudu, said “I am looking forward to a time when, instead of sending our human resources and flying machines abroad for training and checks, thereby expending huge foreign exchange in the process, we not only domesticate such activities but also earn foreign exchange from it when other countries send their machines here for checks and their manpower for trainings in Nigeria.

“Nigeria lost about $2.5bn in MRO investment in foreign countries in 2021. Having such investment here would have improved the sector tremendously.”

According to Isaac Balami, a former Aero Contractors’ Maintenance Engineer, airframe maintenance alone costs Nigeria $1 billion per year, or $1 million per aircraft.

“Airlines expend about $1 million on the maintenance of airframe alone and not to talk about the maintenance of landing gear and engine, which have different maintenance programme. These amounts are spent by Nigerian airlines, the Nigerian Navy, the Nigeria Air Force, the Nigeria Police, the Presidential Fleet and others that operate fixed wing aircraft. Maintenance cost is in terms of hardware and software.”

Balami further noted that it was carefully and thoughtfully chosen to provide solutions to major industry challenges as well as chart the course for a National Air Transport Industry that is effective, efficient, and profitable, as well as a major catalyst for national economic growth and development.

The Federal Government has been working to develop an MRO facility in Nigeria as part of its aviation plan. The Federal Ministry of Aviation has acquired 12,000 hectares of land in Abuja for the facility’s development and other aviation projects.

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IATA Reveals 16.6% Rise in Global Flight Demand for January 2024

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The International Air Transport Association (IATA) has unveiled statistics indicating a surge in global flight demand for January 2024.

According to the latest report released by the IATA, passenger demand, measured in revenue passenger kilometers, rose by 16.6%.

This surge was particularly pronounced in international air travel with a 20.8% increase in demand. Simultaneously, capacity saw a 20.9% boost, resulting in a load factor of 79.7%.

Domestically, demand rose by 10.4% with a capacity increase of 4.6%, and a notable 4.2 percentage point surge in load factor, reaching 80.2%.

Willie Walsh, the Director General of IATA, expressed optimism about the industry’s resilience despite prevailing economic and geopolitical uncertainties.

He emphasized the crucial role of aviation as a catalyst for economic growth, urging governments to adopt policies that facilitate cost reduction, enhance efficiency, and advance towards the ambitious target of achieving net-zero CO2 emissions by 2050.

African airlines notably observed an 18.5% surge in traffic, albeit with a slight decline in load factor to 73.3%.

The report also highlighted China’s robust domestic demand driven by Lunar New Year travel, prompting carriers to increase capacity, particularly through wide-body jet deployment.

As the aviation industry charts a course into 2024, the robust start to the year signals resilience amidst challenges, with stakeholders eyeing sustainable growth and innovation to navigate the evolving landscape of global air travel.

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Nigeria Excluded as UAE Unveils 5-Year Multiple-Entry Tourist Visa

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The United Arab Emirates (UAE) has announced a five-year multiple-entry tourist visa to offer increased flexibility for travelers.

However, Nigeria finds itself excluded from this favorable arrangement due to the strained diplomatic relations between the two countries.

The new visa policy enables tourists from eligible nations to enter and exit the UAE multiple times over a five-year period, provided they spend at least 90 days in the country during each visit.

It aims to enhance tourism and facilitate business interactions, aligning with the UAE’s vision of becoming a global economic hub.

Nigeria’s exclusion from the five-year visa offering stems from a series of diplomatic disputes and travel restrictions between the two nations.

In 2022, the UAE abruptly halted the issuance of visas to Nigerian citizens, along with those from 19 other African countries, without providing detailed explanations.

This move disrupted travel and business ties between the nations, including the suspension of flights by Emirates Airline from Nigeria due to financial disputes.

While the UAE’s new visa scheme promises increased ease of travel and extended stays for tourists, Nigerians remain sidelined from these benefits.

The exclusion underscores the need for diplomatic efforts to mend relations and restore normalcy in bilateral affairs.

Nigerian officials have yet to issue a formal response to the UAE’s latest visa policy.

However, it highlights the challenges facing Nigerian travelers and the urgency for constructive dialogue to address underlying tensions and foster cooperation between the two nations.

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Nigeria Faces Passport Scarcity as Booklets Remain Stuck in Warehouses

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Nigeria is confronting a looming passport scarcity as thousands of passport booklets remain stranded in warehouses across the country due to a cash crunch and bureaucratic bottlenecks.

This revelation comes as service providers report outstanding debts running into billions of naira, further exacerbating the situation.

The Nigeria Immigration Service (NIS) has been grappling with challenges related to the remittance of its share of revenues from passport issuance, hindering the distribution of funds necessary to clear the backlog and release the passport booklets from storage.

The Treasury Single Account (TSA), a key component of the government’s financial management system, has been inactive, complicating matters further.

The scarcity of passport booklets threatens to derail the progress made by the Ministry of Interior in clearing over 200,000 passport backlogs, a feat achieved through reforms initiated by Dr. Olubunmi Tunji-Ojo, the Minister of Interior.

Despite these efforts, the current predicament risks leading to another accumulation of passport applications if not urgently addressed.

Officials of the NIS have emphasized that the Service should not bear the blame for the impending scarcity, highlighting the complexities of revenue distribution and bureaucratic procedures involved in passport issuance.

The NIS relies heavily on revenue from abroad, which accounts for 50% of the proceeds from passport issuance. Delays in accessing these funds have severely hampered the NIS’s ability to settle debts with service providers and release the passport booklets to the public.

As concerns mount over the potential passport shortage, applicants across the country are experiencing difficulties obtaining the necessary documentation, with complaints emerging from passport offices in various locations, including Lagos and Abuja.

Efforts to resolve the crisis are underway, but the lingering challenges underscore the need for swift and effective measures to ensure the timely availability of passport booklets and maintain the integrity of Nigeria’s passport issuance system.

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