Electronic money exchangers listing
Find Cheap Textbooks - Save on New & Used Textbooks at AbeBooks.com

Nigeria may lose N400bn to closure of Abuja Airport

Rate this item
(0 votes)

Nigerian may lose as much as $1 billion (about N400 billion) owing to the temporary closure of the Nnamdi Azikiwe Airport, Abuja.

A former Minister of Aviation, Babatunde Omotoba, who made the projection said that the economy would lose about N400 billion with the shutdown of the airport as many businesses have also shut down while some foreign airlines have cancelled their flights to Abuja during the period.

Sources at the airport also corroborated Omotoba’s statement, pointing out that many businesses are expected to wound down or render skeletal services, while services that depend on daily transit of air passengers to the Federal Capital would close shop.

Omotoba said: “This movement is costing us so much. Some foreign airlines have cancelled their flights to Abuja during the period. Many businesses have also shut down.

 I have come down to Lagos and I want to stay here for two weeks, at least. When I am going I will go by road. A lot of people have put off their trips this period and that will have huge impacts on the economy”

Omotoba said: “An economist will look at what Abuja contributes to the GDP in a year and look at what one and half months will contribute; because many economic activities will be paralysed during this time. Nigerian airlines are going to count their losses. 

The number of travellers will reduce. This will have negative impact on our economy. Many who are in Abuja will be there for the six weeks; so the number of travellers will reduce. This will cost the economy hundreds of billions because a section of the economy will be shut down during this period.”

About three years ago it was projected that Nigeria’s Gross Domestic Product (GDP) was $543 billion and it was also projected that 60 percent of this funds come from Lagos while the other cities generate 40 percent and Abuja and Port Harcourt generate high percentage of the remaining funds.

Omotoba added: “Let us assume that a lot of businesses will not operate fully because of the loss of production, so Abuja will lose about $1 billion during the period, which is about N400 billion. In six weeks, our economy will suffer because you should also know that some of the businesses done in Lagos are also connected to Abuja, so there will be effect of this in Lagos, in Ibadan and other places. So the closure will slow down everything.  This will also shut down the routing of most flights from Abuja to other destinations.”

He also noted that there would be additional costs “because people are also worried about kidnapping. It is because of kidnapping that many entrepreneurs said they would shut down their businesses. So it will have major, major impact on our economy.”

The airport was shut down in the midnight of Wednesday, March 8, 2017 for the rehabilitation of its runway, which will take about for six weeks. The Kaduna airport was designated as alternative to the Abuja airport.

Many international airlines declined to operate from Kaduna airport citing security concerns. They have closed their Abuja offices, cancelling the flights of hundreds of passengers.

Travel expert, Ikechi Uko said that the economy would definitely experience contraction due to the closure of the Abuja airport, pointing out that many hotels would lose customers and businesses that deal with air travel while passenger movement would be drastically affected, while it would be a boom for road transporters.

THISDAY also gathered that some companies in Abuja would provide skeletal service as their top officials had left the city on holidays and those who have offices in Lagos have moved to the nation’s commercial city pending when the airport would resume operations. 

All the domestic carriers have moved their operations to Kaduna as alternative airport to Abuja.

ThisDay 

Read 418 times


Find Weird Books at AbeBooks.com



Most Read

Terms for states as N500b Paris Club refund is ready

Terms for states as N500b Paris Club refund is ready

Another London-Paris Club loan refund (about N500billion) is on the way for states— with fresh hurdles for governors. The Presidency...

How notorious kidnapper, Evans was caught like a chicken

How notorious kidnapper, Evans was caught like a chicken

There was tumultuous ovation and excitement, yesterday, at the Force Headquarters, Kam Salem House, Abuja, and the Police Command, Ikeja,...

#BBNaija: Television as madness - Reuben Abati

#BBNaija: Television as madness - Reuben Abati

What a relief! So, the Big Brother Naija reality television programme is finally over. It ended Sunday evening with 23-year...

Who is the Presidency? - Reuben Abati

Who is the Presidency? - Reuben Abati

When last week, President Muhammadu Buhari decided to suspend the Secretary to the Government of the Federation, Babachir Lawal, and...

The two faces of Tuface -Reuben Abati

The two faces of Tuface -Reuben Abati

Tuface’s decision to lead a protest to register the dissatisfaction of Nigerians with the performance of the incumbent administration and...

Seven Nigerians win U.K parliamentary election

Seven Nigerians win U.K parliamentary election

Seven candidates of Nigerian heritage have been elected into the United Kingdom parliament in the election held on Thursday. The...

Dino Melaye: The making of a brand - Reuben Abati

Dino Melaye: The making of a brand - Reuben Abati

// It is a sign of the times, and a tragedy that the most popular Senator in the Nigerian National...

Forget 2016 Mavrodi money, start afresh –MMM Office

Forget 2016 Mavrodi money, start afresh –MMM Office

All hope seems lost for Mavrodi Mondial Movement (MMM) participants, who jubilated when the scheme announced the unfreezing of the...

Amber Rose, feminism and naked self-promotion - Charli Casey

Amber Rose, feminism and naked self-promotion - Charli Casey

As a feminist, it was quite a surprise to see Amber Rose showing the world her lady garden as I...

From London to Abuja in 50 days: Buhari’s return -Reuben Abati

From London to Abuja in 50 days: Buhari’s return -Reuben Abati

The cities of Daura -President Muhammadu Buhari’s home town, Kano - his political base, and Kaduna -where he has a...

WEATHER REPORT

booked.net booked.net booked.net booked.net booked.net booked.net

MORE POSTS