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Air Passengers May Rise to 7.8 Billion in 2036

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  • Air Passengers May Rise to 7.8 Billion in 2036

The International Air Transport Association (IATA) has announced that it expects 7.8 billion passengers to travel in 2036, a near doubling of the four billion air travelers expected to fly this year.

The world body said the prediction was based on a 3.6% average Compound Annual Growth Rate (CAGR) noted in the release of the latest update to the association’s 20-year air passenger forecast.

“All indicators lead to growing demand for global connectivity. The world needs to prepare for a doubling of passengers in the next 20 years. It’s fantastic news for innovation and prosperity, which is driven by air links. It is also a huge challenge for governments and industry to ensure we can successfully meet this essential demand,” said IATA’s Director General and CEO, Alexandre de Juniac.

IATA said the biggest driver of demand would be the Asia-Pacific region, noting that the region would be the source of more than half the new passengers over the next two decades.

At this point, China would displace the United States as the world’s largest aviation market (defined as traffic to, from and within the country), IATA added, noting that this has moved two years closer since last year’s forecast.

“We now anticipate this will occur around 2022, through a combination of slightly faster Chinese growth and slightly reduced growth in the US. The UK will fall to fifth place, surpassed by India in 2025, and Indonesia in 2030. Thailand and Turkey will enter the top ten largest markets, while France and Italy will fall in the rankings to 11th and 12th respectively.

The world air transport body said a number of risks to the forecast had been identified, remarking that maximising the potential benefits of aviation growth would depend on current levels of trade liberalisation and visa facilitation being maintained.

“If trade protectionism and travel restrictions are put in place, the benefits of air connectivity will decline as growth could slow to 2.7 percent, meaning 1.1 billion fewer passenger journeys annually in 2036. Conversely, if moves towards liberalisation increase, annual growth could be more than two percentage points faster, leading to a tripling in passengers over the next 20 years,” IATA said.

The agency said planning for growth will require partnerships to be strengthened between the aviation industry, communities and governments to expand and modernise infrastructure. Runways, terminals, and ground access to airports will come under increasing strain.

It noted that innovative solutions to these challenges, as well as to the baggage and security processes, cargo handling, and other activities, will also be needed. And air traffic management needs urgent reform to cut delays, costs and emissions.

“Increasing demand will bring a significant infrastructure challenge. The solution does not lie in more complex processes or building bigger and bigger airports but in harnessing the power of new technology to move activity off-airport, streamline processes and improve efficiency. Through partnerships within the industry and beyond, we are confident that sustainable solutions for continued growth can be found,” said de Juniac.

The aviation industry has adopted a robust strategy to reduce its environmental impacts, particularly its carbon emissions. “No industry has done more to meet its environmental obligations than aviation. Our tough targets to achieve carbon-neutral growth from 2020 and to cut our CO2 emissions to half-2005 levels by 2050 are backed by a comprehensive strategy. Our immediate aims are to work with governments to increase the production of sustainable aviation fuels, and to deliver air traffic management efficiencies, which promise significant emissions savings. And from 2020, a Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) will play a major role in meeting our carbon-neutral target,” said de Juniac.

Overland Airways Resumes Asaba-Abuja Flights

Overland Airways, Nigeria’s frontline carrier has announced the start of its flight services from Abuja to Asaba, Delta State from October 31, 2017. The Asaba-Abuja fights, according to the airline, would operate three times a week, Tuesdays, Thursdays and Sundays at 12:00 p.m.; while the Abuja-Asaba flights will operate at 10:30a.m. on Tuesdays, Thursdays and Sundays.

The flight services will be operated with Overland Airways globally renowned ATR turboprop aircraft with superior technological design for unmatched performance on short-distance flights in terms of economic reliability, safety and comfort.

Overland Airways is Nigeria’s longest-serving most consistent scheduled commercial airline providing uninterrupted flight services in Nigeria over the past 15 years. With expanding routes including Lagos, Ilorin, Asaba, Abuja, Dutse, Minna, Bauchi, Jalingo, Akure and Ibadan, Overland Airways looks to begin regional flights in West African soon.

Overland Airways fills the gap in flight connectivity between Asaba and Abuja, thereby easing the inconvenience of passengers face on the route and providing strong support to the economy in Delta State and surrounding regions.

According to Chief Executive Officer (CEO), Overland Airways, Capt. Edward Boyo, the economic recovery in the nation requires strong commitment among all stakeholders to reinvigorate the economy.

He said: “More so, the accelerated development of the economy of Delta State is strategic to the development of the economies of various regions in the country especially the South-East and South-South regions, which makes air transport an important element for the development Delta State.

“Delta State is endowed with great human and other resources which should be carefully harnessed by both the government and the private sector. Overland Airways is dedicated to creating new high-value for the indigenes and visitors to Delta State by providing our trademark excellent, reliable, safe and comfortable air services to Asaba.

“We understand the value of investments and easy access into hinterland economies like Delta State. And we are confident of driving sustainable social and economic development in Delta State as Overland Airways supports the easy movement of investors, tourists, traders and business people to and from Delta State and the adjoining regions such as Onitsha across the Niger. We are in partnership with the people of Delta State. And this is a partnership that works.”

The Chief Operating Officer of Overland Airways, Mrs. Aanu Benson, said: “Overland Airways performed the first-ever flight which opened Asaba Airport in 2011 as a foremost partner in the economic transformation of Delta State, and in celebration and support of the enterprising people of ‘The Big Heart’ State. The launch of the Asaba-Abuja flights demonstrates the renewed bonding Overland Airways brings to the people of Delta State and its environs, underlain by Overland Airways’ characteristic people-oriented flight services.”

“With a modern fleet of 10 aircraft, superior technical and management capabilities as well as unmatched commitment to the sustainable development of Nigeria’s remote economies and airports, Overland Airways is one of the best airlines in the world today. And this is another plus for Delta State and its environs.”

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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Nigeria-Indonesia Trade Surges to $4.7 Billion in 2022, NICCI President Reveals

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The trade volume between Nigeria and Indonesia rose to $4.7 billion in 2022, according to Ishmael Balogun, the President of the Nigerian-Indonesian Chamber of Commerce and Industry (NICCI).

This revelation came during a recent press conference convened to announce the upcoming Nigeria-Indonesia Investment and Trade Forum, scheduled to be held in Kano.

Balogun, speaking with enthusiasm, underscored the pivotal role played by NICCI in fostering bilateral trade and investment between the two nations.

“Our vision at NICCI is to promote robust economic ties between Nigeria and Indonesia, positioning Nigeria as the premier investment destination in Africa,” he declared.

Highlighting Nigeria’s burgeoning position as Indonesia’s foremost trading partner on the African continent, Balogun emphasized the mutually beneficial nature of the relationship.

“Nigeria holds the distinction of being Indonesia’s number one trading partner in Africa, a testament to the strength and vitality of our economic cooperation,” he stated.

NICCI’s commitment to nurturing this partnership extends beyond mere rhetoric, as Balogun elucidated the chamber’s proactive approach to facilitating trade engagements.

“We are resolute in our efforts to bolster interactions between Nigeria and Indonesia through various platforms such as trade forums, fairs, and bilateral symposiums,” he affirmed.

The forthcoming Nigeria-Indonesia Investment and Trade Forum, slated to convene in Kano, represents a pivotal opportunity to further deepen economic collaboration.

Themed ‘Indonesia meets Nigeria: An opportunity for expansion of Bilateral Investment and Trade’, the event promises to be a catalyst for enhanced trade relations and investment inflows.

Reflecting on the evolution of the forum, Balogun reminisced about its inaugural edition held in Jakarta, Indonesia, in October 2022, followed by a successful second edition in October 2023.

This year’s edition seeks to broaden the scope by inviting Indonesian companies to explore the vast potential of the Nigerian market.

Balogun expressed gratitude for the collaborative efforts between NICCI and the Indonesian Embassy in Nigeria, under the leadership of Ambassador Dr. Usra Harahap, as well as the Indonesian government’s Ministry of Trade and Foreign Affairs.

Together, they have orchestrated the invitation of 70 Indonesian companies to participate in the upcoming forum, symbolizing a tangible commitment to fostering bilateral trade and investment.

As Nigeria and Indonesia forge ahead in their economic partnership, the surge in trade volumes serves as a testament to the growing synergy between the two nations.

With NICCI spearheading initiatives to bolster economic cooperation, the future holds promising prospects for further expansion and prosperity on both fronts.

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Dry Cleaners Set to Tap into $165 Billion Global Cleaning Industry

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The Fabric Professionals and Dry Cleaners Association of Nigeria (FPDA) is gearing up to host the “Clean Show Africa 2024” conference.

This conference aims to expose over 25,000 dry cleaners to the vast opportunities present in the global cleaning and hygiene industry, valued at a staggering $165 billion.

Scheduled to take place on May 28–29, 2024, in Lagos, the event is themed “Positioning Africa’s fabric and hygiene industry for excellence.”

It comes at a crucial time when Nigeria’s dry cleaning industry is experiencing steady growth, with projections indicating a 6.4% annual increase over the next decade.

According to Enibikun Adebayo, Chairman of FPDA, Nigeria’s dry cleaning industry was valued at $8.4 million in 2019.

However, this figure is expected to rise significantly, presenting a ripe opportunity for stakeholders to tap into.

Adebayo emphasized the importance of collaboration within the industry to fully leverage its potential.

“A year ago, we launched FPDA of Nigeria. We are also using the platform to educate our members to be better professionals,” stated Adebayo, highlighting the association’s commitment to enhancing professionalism and standards within the sector.

The conference will shine a spotlight on women in the dry cleaning business, recognizing their pivotal role in driving the industry forward. Reports have shown that dry cleaning businesses are often better managed by women, and the event aims to provide them with the necessary support and resources to thrive.

Ruth Okunnuga, Managing Director of Wasche Paint Nigeria, expressed the need to revolutionize Nigeria’s dry cleaning and laundry industry, emphasizing the lack of proper structure and investment.

She stressed the importance of data collection for effective planning and growth within the sector.

Joseph Oru, Managing Director of Zenith Exhibition, highlighted the conference’s objective of engaging the Federal Government to establish training institutions for dry cleaners. Such institutions would play a crucial role in equipping professionals with the skills and knowledge needed to meet global standards.

As Nigeria’s dry cleaning industry prepares to tap into the vast opportunities offered by the global cleaning market, the Clean Show Africa 2024 conference stands as a pivotal platform for collaboration, innovation, and growth within the sector.

With a focus on excellence and professionalism, stakeholders aim to position Nigeria as a key player in the dynamic and lucrative cleaning and hygiene industry.

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Nigeria-Taiwan Commerce Falls to $500m in 2023

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The Chief of Mission to the Taiwanese Government in Nigeria, Andy Liu, has said that the trade relations between Nigeria and Taiwan drop to $500 million in 2023 from $1 billion in 2021.

Liu made these comments during the 2024 Taiwan Business Forum held in Lagos.

According to Liu, Nigeria’s status as a net exporter of agricultural products, particularly sesame seeds has historically fueled the trade between the two nations.

However, the peak in trade experienced in 2021, buoyed by increased demand for Nigerian agricultural goods, notably declined in subsequent years.

“The highest peak of trade reached about $1 billion in 2021. It was the peak of COVID-19, with Nigerians enjoying surplus trading with Taiwan. We imported more of Nigeria’s agricultural products, such as sesame, aside from oil-related products. In 2021, we had a huge demand for agricultural products for our food processing industries,” Liu stated.

However, the trade dynamics shifted in the following years, leading to a significant decline in trade volume.

Liu attributed this decline to a normalization of demand following the peak in 2021, resulting in a reduction in trade value to $500 million by 2023.

Despite this decrease, Liu remained optimistic about the future trajectory of trade relations between the two countries.

“We might see some level of increase in the near future,” Liu enthused, highlighting Nigeria’s continued significance as a destination for Taiwanese businesses.

In addition to discussing trade volume, Liu addressed the issue of counterfeiting and piracy, which has affected Taiwanese products globally.

He said the Taiwanese government is working to combat this challenge by showcasing the quality of Taiwanese products and providing after-sale services.

“We have been having our delegates visit the world to prove that we are victims of piracy, but we are going to use the platform to show that we have good and quality products to let the world know who the true providers of these quality goods are,” Liu affirmed.

The President of Globe Industries Corporation, David Hwang, echoed concerns about counterfeit products, attributing the decline in profit margins to the influx of counterfeit goods from China.

Hwang emphasized the need for partnerships to address this issue and foster mutually beneficial trade relations.

Responding to the developments, the Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Sola Obadimu, commended the Taiwanese focus on African businesses and the quality of their products.

He pledged NACCIMA’s continued collaboration with Taiwanese companies to drive business growth for both nations.

As Nigeria and Taiwan navigate the challenges posed by fluctuating trade volumes and counterfeit goods, stakeholders remain committed to fostering resilient and mutually beneficial economic ties.

The 2024 Taiwan Business Forum served as a platform for dialogue and collaboration, laying the groundwork for future cooperation between the two nations.

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