The Nigerian Supreme Council for Islamic Affairs (NSCIA)  is disturbed by the developments unfolding in the Republic of Niger following the  seizure of power by the military from a duly democratically elected leader- His Excellency, Muhammed Bazoum through a coup d‘etat.

The Coup, which has attracted several reactions and different degrees of sanctions from nations and supranational institutions such as the Economic Commission of West African States (ECOWAS), has socio-economic negative implications for both Nigerians and Nigeriens especially as we share common history and borders. The Council observes with dismay, that although the military junta in Niger has remained defiant, ECOWAS has just lately further imposed more stringent sanctions against it. But it is well known that such kinds of economic sanctions are counter-productive and eventually end in futility. It is the masses that do suffer the pains and difficulties of the sanctions while the junta that seizes power takes control of state resources and begins a life of indulgence. The Council therefore, calls on ECOWAS and in particular, the Nigerian Government to retrace their steps in this regard to avoid correcting wrong with another.

While Nigeria spearheads the imposition and heaping of sanctions on Niger it should be reminded of the thousands of Nigerian refugees to whom Niger provided succor and safe abode for several years now. This is undoubtedly an act of good neighbourliness, rare hospitality and kindness that should not be reciprocated with measures that would cause disaffection, breed hate and hostility and aggravate the sufferings of the downtrodden people across both sides of the borders. 

While it is understandable that the leadership of both ECOWAS and Nigeria must preserve and protect democracy by discouraging forceful take-over of power through military coup d’état, the NSCIA strongly implores the Federal Government of Nigeria and by extension the leadership of ECOWAS to continue to tread the path of dialogue rather than resorting to violence. This is because violence does more harm than the intended good in any circumstance. Should violence break out in Niger, it is the helpless and hapless masses, who have already been devastated and impoverished by the impact of the Covid-19 pandemic on the world economy, that would pay the very costly price, not the coup plotters.

It is pertinent to state here that Nigeria has not gotten away with its own intractable issues and challenges of insecurity and violence that have been causing death incessantly, displacing millions and destroying livelihood in states that share borders with Niger. The Boko Haram insurgency in the Northeast and the banditry in the Northwest have not been subdued. Given this situation it would not only take a dance on the precipice to  embark on military expedition at this material time, but would also smack of ingratitude to a neighbor that had consistently remained faithful in helping and supporting us in our fight against those extreme groups and criminal gangs.

The Council has consciously and keenly followed the reactions that have trailed the rather belligerent stand of the ECOWAS and its resolutions that include possible use of violence in Niger. It can be asserted without fear of contradiction that Nigerians are very much united against military intervention in Niger. Many religious and civil society groups across religious, ethnic and regional divides, as well as elder statesmen and retired military veterans and security experts have all categorically rejected the use of violence in intervening in Niger. In this regard, the Council hereby reiterates the need to pursue peace by peaceful means as any war between Nigeria and Niger would severely strain the fraternal relationship between the two countries which dates back to the pre-colonial era. There is therefore, no option to dialogue, and to be forewarned is to be forearmed.

The Council prays that Almighty Allah would grant our leaders the wisdom and ability to resolve the crisis in Niger in a peaceful manner. May He also bestow peace upon us in Nigeria and the region at large.

Signed.

Prof. Salisu Shehu

Deputy Secretary-General

Azman Air has sent all of its staff on a compulsory leave without pay, indefinitely.

Nurudden Aliyu, the airline’s spokesperson, said the decision was made due to a number of factors, including the ongoing C-checks on its aircraft and the high cost of operations.

In aviation, C-check is a deep inspection of the majority of an aircraft’s components usually done by a maintenance technician. The goal is to check the functionality of the plane.

“We have temporarily suspended operations due to all our 737 used for domestic operation being due for C-checks,” Aliyu said.

“We have already sent two of them to a maintenance facility in Turkey, but unfortunately, since we sent the aircraft there, there is a queue in the maintenance hanger and they were not able to finish in time.

“The other two we are using here are also due for maintenance and we are trying to send them for C-checks also.

“Also, one of the aircraft has achieved 90 percent completion so we are expecting two of the aircraft back in October.”

‘AZMAN AIR FACING FINANCIAL CONSTRAINTS’

Aliyu further said the airline is facing financial difficulties due to a lack of revenue, explaining that sending workers on leave without pay was a way to cut costs.

“We have been doing on-and-off operations since March, sometimes with one aircraft. So we decided, due to this harsh situation, to temporarily suspend domestic operation until we put our house in order,” the spokesperson said.

“We are not going to employ another set of people, we are going to engage them; that’s why in the mail sent to them we gave them assurance that once the situation normalises, they will be called upon.

“The only problem is that we didn’t state the date of resumption. Like I said, since March that we have been doing on-and-off operation, we have not denied anybody salaries, we have been consistent in that regard but the burden became too much on the company since there is no revenue, that’s why we decided to suspend operations.”

‘WORKING TO REFUND CUSTOMERS FOR CANCELLED FLIGHTS’

In the past months, a lot of Nigerians have shared their ordeal with Azman Air, accusing the airline of cancelling their flights and refusing to make refunds.

Aliyu, speaking on the matter, said the airline has made it a priority to process the payment for those that have applied for a refund and that they hope to complete the process upon resumption.

“We are working on that and we are going to pay everybody. In fact, that’s what we are working on now, to pay those that have refund cases with us,” he said.

“The payment will be made to those that apply to get a refund. Once your flight is cancelled we have a refund form that customers are meant to fill. It’s only the customers that fill this form that can be refunded.

“We are determined to make payment to everyone we are owing and we hope to clear that upon our resumption.”

Niger currently owes Nigeria N4.22bn ($5.48m: $/N769.27 exchange rate) for power supply; the Nigerian Electricity Regulatory Commission’s just released first quarter report has stated.

According to the report, Niger’s state power firm, Nigerien Electricity Society, was yet to remit the $5.48m invoice issued for power supply by the Nigerian market operator.

“None of the underlisted international customers made any payment against the cumulative $16.11m invoice issued to them in 2023/Q1; Paras-SBEE ($3.46m), Transcorp-SBEE ($3.85 million), Mainstream-NIGELEC ($5.48m) and Odukpani-CEET ($3.32 million).

“Out of N842.38m invoice issued by MO to all the eight (8) bilateral customers in the NESI, only North-South/Star Pipe made a remittance of N15.38m against its invoice of N24.69m,” it stated.

The NERC mandated the Market Operator to invoke the provision of the market rules to curtail the payment indiscipline being exhibited by the various market participants.

The PUNCH had last week, reported that the power supply from Nigeria to the Republic of Niger was stopped on August 2.

Last week, ECOWAS, led by President Bola Tinubu, decided on sanctions against the military personnel in Niger, who toppled President-elect Mohamed Bazoum in a coup d’état.

NIGELEC is under contract with a power firm in Nigeria, Mainstream Energy, for the supply of electricity.

Nigeria also exports electricity to the Republics of Benin and Niger based on various Transaction Service Agreements.

In July, The PUNCH exclusively reported that Nigeria exported about N23.13bn worth of electricity to some neighbouring countries in 2022.

“Nigeria disconnected since Tuesday (last week) the high voltage line that carries electricity to Niger,” a report by AFP said, quoting industry sources through local production.

According to a report by NIGELEC, Niger’s sole electricity supplier, in 2022, 70 per cent of Niger’s share of electricity came from purchases from the Nigerian company – Mainstream.

Electricity supplied to Niger is produced in Kainji Dam located in Niger State.

However, to free itself from its energy dependence on Nigeria, Niger is working to complete its first dam by 2025.

Located about 180km upstream from Niamey, the Kandadji Dam is projected to generate 629 gigawatt-hours of electricity annually.

A separate report by the BBC also said major cities in Niger are facing rolling blackouts following last week’s coup.

Residents of Niamey, Maradi and Zinder had power for about an hour at a time before it was switched off for up to five hours. Power cuts like these are unusual in Niger, which normally has regular and reliable supplies.

The President of Nigeria Consumer Protection Network and Coordinator, of Power Sector Perspectives, Kunle Olubiyo, confirmed that ECOWAS would isolate Niger Republic from the electricity supply.

“About 60 per cent of power supply to Niger comes from Nigeria. Just like organised labour usually shuts down the national power grid as part of negotiations when all appeals might have failed to achieve results, Mr President (Tinubu) is the leader of ECOWAS at the moment.

“Disconnection of power supply is seen as a low-hanging fruit,” he stated.

Tougher times are ahead of gas consumers, as marketers have hinted that prices will go up next week.

The President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Olatunbosun Oladapo, said gas consumers should brace themselves for price hikes starting next week.

He cited rising international prices, high tax rates and prices of vessels, forex scarcity, and naira devaluation as some of the reasons for the intended price review.

“It is starting next week because international prices have gone up. The prices of vessels have gone up and taxes are high, but consumers are not earning more.

“Their purchasing power has gone down. Everybody is crying. Consumers, middlemen, and retailers are feeling the impact because business is now on the low side,” he said.

Olatunbosun described the imminent price increment as unfortunate.

“The situation is very unfortunate because prices are going higher. Nigerian consumers are passing through very difficult times because they can no longer afford gas,” he added.

According to him, consumers are now returning to firewood, charcoal, and sawdust for cooking.

“The government should come in and alleviate the suffering of the masses by providing palliatives, reducing taxes and levies.

“You can imagine that for every 1kg of gas priced at N700, tax would take way N3.50. How much is left in such a business?” he continued.

He urged the government to tax profit and not products because consumers were not buying gas anymore.

“Local taxes are worsening the problem,” he said, calling on marketers who had the opportunity to buy products locally to fix prices with “consumers’ sympathy” in mind.

His reaction came on the heels of findings by The PUNCH that vessel scarcity in the international market would push up local prices of Liquified Natural Gas, also known as cooking gas in the coming months.

Vessel scarcity in the international market has led to charter rate hikes, ahead of the 2023 winter, when demand for heating fuel peaks.

As of August 1, 2023, charter rates surged to $284,750 per day for November and $206,750/day for October, quadrupling the current price of $70,500/day, according to data from Spark Commodities quoted by Bloomberg.

“Tanker supplies are increasingly tight because traders are using the ships as floating storage in a bet that LNG prices will rise as the weather turns colder.

“Volatile shipping rates can eat up margin for an LNG trader looking to cash in on higher winter prices, and rising transportation costs ultimately can mean higher prices for buyers in Europe and Asia.”

The number of LNG vessels floating on the water for at least 20 days also rose in late July, with 42 vessels tracked, which is about 27 per cent higher than the same time a year earlier.

Nigerian LPG prices are internationally benchmarked based on Nigerian Liquefied Natural Gas Contract prices and are always influenced by international prices.

And like other internationally traded commodities subjected to price fluctuations due to market dynamics, the NLNG CP is subject to changes and can be reviewed either upwards or downwards at least once to three times.

The devaluation of the local currency would also impact the domestic price of LPG.

The dollar exchanged for N749.62 on Wednesday, according to the Central Bank of Nigeria.

The Nigerian LNG usually sells the cooking gas it produces locally to off-takers based on the prevailing exchange rate.

The PUNCH checks showed that the prices of 20 metric tonnes of LPG at the major depots in Apapa, Lagos, between July 28 and August 7 had been between N10.7m and 11m.

Local consumers of cooking gas have for some months now enjoyed low prices due to a drop in international prices.

The price of LPG dropped from an average of N730 per kilogram in June to around N600/kg in July and increased to N750/kg in August due to the naira devaluation.

As of June, the price dropped by 76.1 per cent to 2.10 per one million British Thermal Units on May 31 from 8.78 per one million BTU, according to U.S. Energy Information Administration.

A report by the National Bureau of Statistics on retail gas prices said the average retail price for refilling a 5kg cylinder of cooking gas decreased by 6.71 per cent month-on-month from N4,360.69 recorded in May to N4,068.26 in June.