- Aviation Experts Canvass Industry Growth Through Improved Policies
Aviation stakeholders have said only improved government policies can drive growth in the industry.
The stakeholders noted that such policies must also be focused on achieving certain results that could be measured against international best standards and practices.
The President, Aviation Round Table Initiative, Mr Gbenga Olowo, said the policies must be made to drive investors, consumers and ensure safety and security as well as stakeholders’ satisfaction.
According to him, the industry needs policy thrust directed towards achieving solid objectives, adding that the industry’s regulatory framework must be stable, and the political environment should be favourable.
Olowo said, “Regulations shouldn’t be changing the way we change our dress. We cannot continue to be prodigal the way balance of trade against Nigeria is handled. If we cannot run our businesses, then we will not be able to manage even ourselves.
“If we say Nigerian aviators cannot give birth to solid and sound Nigerian airlines that means that a Nigerian shouldn’t be our governor; a Nigerian shouldn’t be our president or our legislator. But as long as Nigerians remain our president, commissioners, governors and local government chairmen as well as legislators, then Nigerians are available to run airlines for us. We have all the solid resources provided the policy thrusts are followed.”
Olowo and others, who spoke at a stakeholders’ forum in Lagos, noted that the issue of policy summersault resulting from change in government must be addressed.
A former Managing Director, Nigerian Airspace Management Agency, Mr Roland Iyayi, stated that to grow aviation, there should be a deliberate and consistent policy geared towards ensuring that the airlines survived.
“That you have airlines failing is not because they can’t run the airlines; it is because the environment in which they operate is extremely harsh and not conducive for growth,” he said.
He said the multiplicity of charges in the industry was inconsistent with the purpose of growth.
He added, “On the one hand, we have government agencies that are supposed to be cost-recovery agencies being encouraged to grow their Internally Generated Revenue, which is inconsistent with the industry growth. Unfortunately, most of the things we do in the industry are born out of knee jerk reactions.
“Something happens, we react, rather than being proactive. Essentially, when you put a policy framework in place, it is assumed to be proactive because you are looking at the issues and you are proffering solutions by way of articulating a chart. If you have inconsistencies, you can never see the benefit of any policy you put in place.”
The Chairman and Chief Executive Officer of Air Peace, Mr Allen Onyema, said the government had been supporting airlines through tax waivers and other incentives but stressed that there should be policies in place to curtail the influx of foreign airlines.
He said, “The invasion of this country by foreign airlines, if not stopped, will continue to deplete our reserves through the money they take out of this country and pretend that they love us more than themselves.
“If we get it right, with the right policies in aviation, there are many rich people in this country that can turn aviation around. But many are not ready to come into the industry because they are scared of certain policies. Policies of multi designation of frequencies to foreign carriers will not encourage Nigerian investors to invest.”
Livestock Feeds Appoints Adegboyega Adedeji as Substantive Managing Director
Adegboyega Adedeji is the Substantive Managing Director
Livestock Feeds Plc on Monday announced it has appointed Mr. Adegboyega Adedeji as the company’s substantive Managing Director, effective from 2nd October 2020.
In a statement released on the Nigerian Stock Exchange (NSE), the company said Mr. Adedeji was the Acting Managing Director of the Company before he was appointed as the Managing Director.
It added that Mr. Adedeji was “formerly the General Manager, Sales and Operations responsible for all sales activities and the strategic development of the Company’s markets, along with new products portfolio generation and development.”
He graduated from the famous Obafemi Awolowo University, Ile-Ife in 1996 and had his MBA from the University of Roehampton, UK in 2018.
He worked with Grand Cereals Limited as Regional Sales Manager before becoming their procurement manager. He moved to UACN Plc in 2007 as the Training Services Manager, a position held till September 2009 before he was transferred to UAC Restaurant.
COVID-19 to Plunge Global Consumer Spending by 8.6 % in 2020
Global Consumer Spending to Drop by 8.6 Percent in 2020
The coronavirus pandemic has changed almost every aspect of people’s daily lives, and consumer spending is no exception. The uncertainty of the COVID-19 crisis caused considerable changes in consumer habits, forcing them to cut down their budgets and prioritize spending.
According to data presented by Stock Apps, the coronavirus outbreak is expected to cut global consumer spending to $44.3trn in 2020, an 8.6% plunge year-over-year.
$4.2trn Drop in Spending Amid COVID-19 Crisis
Falling consumer spending has significant effects on overall Gross domestic product (GDP) growth, considering it accounts for almost 70% of GDP.
Before the COVID-19 crisis, global consumer spending has witnessed steady growth for five years in a row, revealed Statista, IMF, United Nations, World Bank, and Eurostat data. In 2015, it amounted to over $41.5trn. Over the next twelve months, this figure rose to $42.5trn and continued growing. Statistics show that in 2019, consumers worldwide spent a total of $48.5trn, the highest amount in a decade.
However, the coronavirus crisis triggered a sharp fall in 2020, with global consumer spending expected to plunge by $4.2trn year-over-year. Nevertheless, statistics show the following years are set to witness a recovery, with consumer spending growing by 20% to $53.5bn in 2022.
Statista data also revealed that Switzerland represents the leading country globally, with over $40,000 in consumer spending per capita in 2020. Luxembourg ranked second with around $5,000 less than that. Iceland, Denmark, and Norway follow, with $34,300, $25,800, and $25,600, respectively.
60% of Consumers Changed their Shopping Behaviour
The McKinsey&Company survey showed consumers became increasingly cautious with their spending in 2020. Even after countries lifted lockdowns, many consumers still see their incomes fall, forcing them to reduce budgets and change shopping habits.
Statistics show that increased time spent indoors led to significant growth in consumer spending on groceries, household, and home entertainment. Brazil, South Africa, and India lead in this category, with up to 30% consumer spending growth. Major consumer markets like the United States, United Kingdom, Germany, and China witnessed around 15% grocery shopping growth in the first half of the year.
However, with consumers being mindful of their spending and turning to less expensive products, 2020 has witnessed a plunge in clothes and accessories, outside entertainment, services, travel, and transportation spending. Respondents in all countries said they cut down spending in these categories between 20% and 50%.
The McKinsey survey also revealed the COVID-19 outbreak triggered a significant change in the shopping mindset. More than 60% of consumers globally have tried a different brand or shopped at another retailer during the crisis, mostly for convenience, value, and quality.
In China and the United States, over 75% of consumers reported trying a new shopping method, and 60% plan to stick with it post-crisis. The United Kingdom and Germany follow with 71% and 54% of consumers who practiced new shopping behavior. In Japan, where lockdowns weren’t imposed, only 33% of consumers changed their shopping mindset.
Survival Fund: Buhari Commences Disbursement of N75 Billion Support Fund
FG to Commence Disbursement of N75 Billion Survival Fund to MSMEs
The Federal Government to commence the disbursement of N75 billion COVID-19 support fund to successful Micro, Small and Medium Enterprises (MSMEs) that applied for financial support under the National MSME Survival Fund this week.
On September 10, 2020, the Federal Government announced the introduction of two financial support schemes to support around 1.7 million small businesses with N75 billion.
According to Tola Adekunle, the Special Assistant to the President on MSMEs, Office of the Vice President, who doubles as Project Coordinator, Survival Funds Scheme, payment disbursement to some of the beneficiaries of the schemes would commence this week.
He said, “Presently we are doing it in batches of 12 states to be able to monitor the scheme and as we speak now 12 states are ready. We are hoping that by the end of this week, we will be able to pay 12 states.
“We are starting with the artisans and it is 4,500 persons per state, plus 4,500 for transporters, bringing it to about 9,000 for each state. Right now, we have about 54,000 from 12 states.”
Asked by journalists when those on payroll support would start receiving payments, he said “By the end of this month.
“We want to ensure that the staff start getting their salaries and same for the second and third month.”
Adekunle explained that payroll support which was introduced under the survival fund to help businesses that employed between 10 to 50 people, will ensure 10 of the 50 employees are paid between N30,000 to N50,000 depending on their salaries. Payment, he said would commence by the ending of this month.
He said, “We now pay 10 of those people from among the 50 employees and we pay them between N30,000 and N50,000.
“But the minimum we pay is three staffs for three months to support their businesses and to ensure that we are helping businesses to augment their salaries.”
He, however, said the program ended on October 15 but states that were yet to meet their quotas were demanding extension. A demand he said was valid given that only less than 20 states have met their quotas.
“In my own opinion, it is valid but the decision lies in the hands of the committee and the project coordinator so I have to convince them based on data analysis,” he said.
Speaking on the total number of applicants for the payroll support, Adekunle said, “As at the day it closed, we had about 432,000 businesses that had applied. However, we have shortlisted less than 70,000 businesses that qualify and meet the requirements.”
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