A recent check on ticket price showed that a one-way economy class ticket from Lagos to London on Turkish Airlines cost $1,636 (N1,313,708, using the rate of N803/$ on the I&E window).

But a one-way ticket from Cotonou to London on Turkish Airlines cost $469 (N376,607) for the same date.

A flight from South Africa to London or Istanbul, despite the long distance, has always been cheaper than flights from Lagos to London or Istanbul, on the same airline and same date.

The difference in ticket prices has made a number of Nigerian passengers fly from Accra, Ghana to London, Canada and other frequently visited destinations in a bid to cut costs.

The question then is why the wide disparity in ticket prices from Nigeria and other African destinations? Is it just a rip-off as many have alleged or there are several factors that contribute to this worrisome trend?

While foreign airlines have linked the high cost of tickets to the exchange rate in Nigeria and their trapped funds, some aviation stakeholders have argued that other African countries with high exchange rate and trapped funds still have relatively cheaper fares than there is in Nigeria.

Some stakeholders have argued that foreign airlines have continued to leverage demand and the absence of Nigerian carriers on international routes to “rip off” Nigerians.

In 2019 when Air Peace commenced flights from Lagos to the United Arab Emirates, base fares immediately dropped on the route from N400,000 on Emirates and Qatar to about N250,000.

“We just need our local airlines to stand up to the task and compete with these foreign airlines coming here to rip us off. All foreign airlines operating in Nigeria increased fares exponentially but same airlines’ tickets are cheaper in neighbouring countries to the same routes,” a stakeholder who did not want to be mentioned told BusinessDay.

Another stakeholder explained that Virgin Atlantic tried to fly to Accra from London with the same aircraft configured for Nigeria with heavy emphasis on upper class but it quietly quit even at the lower fares.

“Nigerians were now flying to Ghana to take advantage of the slightly lower fares to the UK. If no one can bankroll an airline with the financial muscle to equip it with dozens of aircraft to fly locally then even international is a near impossibility. If we lower our taxes and improve efficiency then the airlines could lower their fares. If we code share on lucrative routes with local airlines partnering to take a small share we might be able to get in the game,” he said.

He noted that if Nigerians accepted that jet turboprop aircraft are the best Nigeria can afford for local flights and had a hundred of them, the country would have the beginnings of an industry.

He said: “As long as we scare away the only airline in the world that was persistently trying to do business with us because they understand our market and value our custom (Ethiopian Airways), we aren’t flying anywhere in a hurry. It will take us 100 years.

“When you look at the taxes airlines are charged in conjunction with exchange rate issues (hopefully now rested but they still need to get their money out) coupled with lack of competition on the route, they can pretty much charge what they like, provided they continue to get passengers who are willing to pay.”

Last month, the International Air Transport Association (IATA) disclosed that Nigeria owed $812.2 million out of $2.27 billion trapped funds, making it the country with the highest trapped funds globally.

Kingsley Nwokeoma, president of Association of Foreign Airlines and Representatives in Nigeria, told BusinessDay that foreign airlines are not ripping off Nigerians in anyway but the exchange rate and trapped funds which is close to one billion dollars has forced them to block the low inventories (low fares) in Nigeria while these low fares are available in other African ticket selling platforms.

He said this action is simply to reduce the amount of trapped funds in the country.

“If the government does not work with foreign airlines to resolve the issue, it will affect the Nigerian economy and will be a plus to other neighbouring countries,” Nwokeoma said.

He advised the Central Bank Nigeria (CBN) to sit down with the airlines and try to see how they would pay part of the money to the airlines. “Boeing will not ask the airlines if people are repatriating money or not. They want their money paid. The same applies to other service providers,” he added.

The AFARN president said that the amount of money being owed by the CBN “is embarrassing because it is a business these airlines are running and if there are no funds, it will definitely affect safety”.

Seyi Adewale, an aviation analyst and chief executive officer of Mainstream Cargo Limited, told BusinessDay that international airlines are significantly benefitting from a barrage of odds against the Nigerian travelling citizens, adding that the odds could start from an overview that the propaganda is generally not in Nigeria’s favour.

Adewale said: “The general narrative that international airlines have trapped funds already places us at a disadvantage as resounded by IATA.

“Secondly, the notion that pre-existed the floatation of the naira is that there was a wide disparity and indeed an arbitrage between official naira dollar exchange rate and that of the parallel exchange rate that accentuated the controversy of what exchange rate the airlines are to adopt and how this affects the repatriation of their funds.

“There were about four exchange rate platforms with significant differing rates amongst all the four. This may have been tamed by the recent fact that the naira-dollar now has managed-floatation policy from the new federal government that has potentially limited the propaganda narrative against Nigeria. It is instructive to note the out-of-box thinking that is now at play regarding the currency and debt swap allegedly adopted by Ethiopian Airlines and Dangote Group.”

He said the international airlines benefit from the fact that domestic airlines are yet to substantially demonstrate the capacity to fly long haul routes and “Nigeria does not have a national carrier able to ‘fight back’ in a reasonable manner or benefit from the signed Bilateral Air Service Agreement with the respective countries”.

He said it will not be surprising that the countries party to these agreements are not willing, interested or supportive of the recognition of the domestic airlines in a fair manner.

“Relating to our culture, the propensity for Nigerians to travel at the slightest instance further exacerbates this issue with its hugely dispersed Diaspora population,” Adewale said.

“It may please us to remember that airline ticketing/ selling rates are also demand and supply based. This can be proven with the high disparity between flying in or out of Lagos as compared with that of Abuja,” he said.

Olumide Ohunayo, an industry analyst and director of research at Zenith Travels, said the continuous increase in ticket on the Nigerian route is because of the demand pull.

According to Ohunayo, this demand pull is not being met by capacity on the route and that is why the price difference is so much.

He said: “As popular as the London route is with 21 frequencies already used to the maximum by British carriers, we need a representative on this route. Listening to the Air Peace chairman, it is not the will but the support. Government needs to support local locals on international routes.

“When an airline flies into another country, it becomes a flag on that route. The ministry of justice, foreign affairs and aviation are supposed to follow the airline through. The airline must not be a national carrier before it gets protection. Virgin Atlantic is protected by the British government on issues that have to do with international trade and the same applies to numerous carriers from the United States.”

Last modified on Wednesday, 19 July 2023 07:18

The suspended Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele has asked the Federal High Court in Lagos to admit him to bail on self-recognizance pending the determination of the charge filed against him by the Federal Government.


The bail application was filed by a former Nigerian Bar Association (NBA) President, Mr. Joseph Daudu (SAN), who leads 10 other lawyers, including five other SANs for Mr. Emefiele.

The case has been assigned to Justice Nicholas Oweibo

Emefiele, in the nine-ground application, denied being guilty of the gun possession-related charge and said he was neither a flight risk nor would not jump bail if granted.

Meanwhile, the Department of State Services (DSS) yesterday claimed that Maxwell Okpara, who it described as the lawyer of the outlawed Indigenous People of Biafra (IPOB), is the lawyer of suspended Central Bank of Nigeria (CBN) Governor Godwin Emefiele.

The service said this in a tweet on its official handle @officialDSSNG.

According to the tweet, Okpara mobilised like-minded lawyers against the Director General of the DSS, Yusuf Bichi.

The tweet reads: “Charge and bail, overzealous uninformed IPOB/ESN lawyer Maxwell Okpara mobilises other like-minded lawyers against DGSS. Futile Efforts. Well, Nigerians, beware! This is in bad faith. Transferred aggression.


“A Biafran Republic agitator and outlawed IPOB counsel defending the suspended CBN governor. Is IPOB defending one of theirs? What a contradiction. Hmmm. What’s the connection? Is someone telling us something? May Maxwell be properly educated on points of law, please.”

Following criticism that has trailed the planned disbursement of N500 billion palliative, President Bola Tinubu has ordered a thorough review of the interventionist programme.

This was contained in a press statement issued on Tuesday by Dele Alake, the Special Adviser to the President on Special Duties, Communications and Strategy.

The N500 billion interventionist programme was initiated to cushion the effect of the fuel subsidy removal in a request the president sent to the National Assembly and billed to last for six months.

It was tacitly approved.

However, expressions of dissent and disapproval, especially by some.opinion leaders and economists, have left the president to call for a review, which he said would ensure proper approach to the vexatious issue.

The statement also indicated that there would be release of grains and fertilisers to almost 50 million farmers.

Alake said the President had a covenant “with Nigerians that their welfare and security will be topmost in the Renewed Hope Agenda of his government,” as a consequence, would continue to hold his side of the agreement.

He however noted that there has been misconception regarding the policy which he said has led to a lot of ill-information.

“The Administration believes in the maxim that when there is prohibition, there must be provision, ” he said adding that, “Since subsidy, the hydra-headed monster threatening to kill the economy, has been stopped, the government has employed a broad spectrum of reliefs to bring help to Nigerians.”

He stressed that based on the agreement to listen to Nigerians, “the N8,000 conditional cash transfer programme envisaged to bring succour to most vulnerable households be reviewed immediately.

“This is in deference to the views expressed by Nigerians against it.

“That the whole gamut of palliative packages of government be unveiled to Nigerians.

“Immediate release of fertilisers and grains to approximately 50 million farmers and households respectively in all the 36 states and the FCT,” he added.

He further pointed out that, “The President further assures Nigerians that the N500 billion approved by parliament to cushion the pain occasioned by the end of subsidy regime will be judiciously utilised. The beneficiaries of the reliefs shall be Nigerians irrespective of their ethnic, religious or political affiliation.

“President Bola Tinubu has promised to always prioritise the wellbeing of Nigerians and he is irrevocably committed to the vow. A number of decisions taken so far by this Administration have buttressed this stance.

“You will recall that the President took a similar decision after listening to complaints from the business community/stakeholders about burdensome taxes, particularly multiplicity of taxes they are made to experience.

“This warranted the signing of four (4) Executive Orders cancelling some classes of taxes, while suspending the implementation dates of others.

“In addition, the President has also set up a Tax Reform/Fiscal Policy Committee to bring up recommendations that will engender a wholesome fiscal environment for the country and remove anti-business barriers,” he added.

Last modified on Wednesday, 19 July 2023 07:12

The Labour Party (LP) has said that the latest adjustment in the petroleum pump price is just the beginning of hard times Nigerians will be facing under the All Progressives Congress (APC) led administration.


Spokesman of the party, Obiora Ifoh, said Tuesday night, the party had earlier warned that the bourgeoisie government in place can only enrich the upper class and inflict penury on the people.

“You offer a paltry N8000 to a family of five and extract all they have laboured for through obnoxious policies. Nigerians do not deserve what they are getting from the present government.

“The Labour Party condemns the attitude of the government to its people. This is even coming at a time the Nigeria currency has continued to devalue under the watch of this government,” Ifoh said.

He, however, expressed optimism that Nigeria will overcome the taskmaster of the time and Nigerians soon witness the promised land.

His reaction came after some stations operated by the Nigerian National Petroleum Corporation Limited (NNPCL) increased the pump price of Premium Motor Spirit, popularly known as petrol, from N537/litre to N617/litre in Abuja and N620 in Kano.

The increment occurred less than two months after President Bola Tinubu announced the discontinuance of subsidy on petrol, leading to the upward review of the price of the commodity from N198/litre to over N500/litre.

A Federal High Court sitting in Kano, on Tuesday, stopped Kano State Public Complaints and Anti-corruption Commission from investigating alleged missing N100 billion from Local Government Council accounts.


The court presided over by Justice S.A. Amobeda, also halted the Kano Anti-graft Commission and its agents from inviting, investigating, arresting, and intimidating Local Government chairmen in the state, pending the determination of the Applicants’ Motion on Notice.

The applicants before the Court are 15 LG chairmen in the state from Dawakin Tofa, Ungogo, Dambatta, Kunchi, Rimin Gado, Karate, Bichi, Tsanyawa, Gwarzo, Tarauni, Dala, Turun Wada, Kano Municipal and Shanono; while the respondents are Kano State Public Complaints and Anti-corruption Commission and Bar. Muhuyi Gado.


The Court granted Interim Injunction, “restraining the Respondents jointly and severally, personally or through their agents, servants, privies and/or assigns, arresting whomever and however from inviting, investigating, arresting, detaining, harassing and/or intimidating the Applicants in respect of Local Governments accounts, their personal accounts, vouchers and cash books of Local Governments herein, pending the hearing and determination of the Applicants’ Motion on Notice.”

The court also stopped the respondents from taking any further steps in connection with, or relating to, or arising from the invitation by the Respondents against the Applicants, as communicated in the 1st Respondent’s letters, dated 7th and 10th July 2023 respectively, pending the determination of the Applicants’ Motion on Notice.


The Court also granted an accelerated hearing of the Applicants’ Motion on Notice and directed the Respondents to maintain the status quo in respect of the subject matter of the suit, pending the hearing and determination of the Applicants’ Motion on Notice.

There was drama on Tuesday at the governorship election petition tribunal sitting in Birnin Kebbi as the principal of Sultan Abubakar College, Sokoto said the Kebbi State deputy governor did not graduate from the school.


The Deputy Governor, Senator Umar Abubakar, claimed he finished from Sultan Abubakar College, Sokoto in 1979. But the principal of the school disowned the deputy governor by tendering 15 documents before the governorship election petitions tribunal.


The principal, Muhammed Zayyanu Umar, while being cross examined by counsels to the Governor and Deputy Governor insisted that there was no records in the school to support the testimonial allegedly given to him from the college because his name was not in the list of the 1979 graduands of Sultan Abubakar College, Sokoto.


The Peoples Democratic Party Governorship candidate, Maj General Aminu Bande (rtd) is challenging the victory of the candidates of the All Progressives Congress (APC), Governor Nasiru Idris and his Deputy Umar Abubakar in the last general election in Kebbi State .

The principal is the first subpoenaed witness to be cross examined by the respondent’s counsels after the tribunal admitted the 15 documents he presented to it.

While giving his testimonies and answering questions from the respondent counsels, Barrister Wale Agunbiade SAN, Yakubu Maikyau SAN and others, the principal insisted that based on the documents he submitted to the tribunal, the results of 1979,1980,1981 and 1982 did not carry the name Umar Abubakar alleged to be a graduand of the college within the period, particularly in 1979.

He insisted that based on the available records in his office as principal of Sultan Abubakar College, Sokoto, the deputy governor did not finish from the school in 1979.

A director in Sokoto State Ministry of Education , Abdulsamad Hamzat Yisa who was subpoeaned to testify at the tribunal said the ministry set up a committee to investigate the principal but they found that the principal was right .

Earlier, the counsels to the respondent had objected to the continuation of the hearing on the grounds that the list of witnesses were served on them around 8pm. They argued that report of pretrial indicated that parties should be served list of witnesses within 24 hours.

But the petitioner’s counsels told the tribunal that apart from the list of 15 witnesses scheduled to testify, there are other subpoenaed witnesses which are court witnesses not petitioners witnesses.

On that ground the tribunal chairman, Justice Ofem I. Ofem ruled that, on one part, agreed with the respondent counsels that since the notice served them was not within 24 hours, the tribunal will not proceed to take the witnesses but on the other hand subpoenaed witnesses which notice was served to the respondent since 12th of July to be heard.


The petitioners had called 21 witnesses,15 of them are normal witnesses while six are subpoenaed witnesses from government agencies and departments.

The Abia State government has confirmed the sacking of about 7000 workers from the state civil service who were employed by the immediate past administration between January and March 2023.

The names of the affected people have also been removed from the state payroll.

The sacking of the workers said to have been illegally employed was disclosed by Prince Okey Kanu, the state Commissioner for information during a press briefing after the Executive Council meeting in Umuahia on Tuesday.

The information boss revealed that about N600 million has been saved with the sacking.

According to Kanu, over 2,300 ghost workers had been discovered through the on-going biometric verification of workers in the state, which has helped to save over N220 million monthly.

He restated the commitment of the Otti-led government to improve the welfare of workers and pay their salaries regularly.

The Government’s spokesman charged workers to reciprocate Government gestures with rededication to duty, stressing that Government would no longer tolerate nonchalant attitude.

He however warned workers who had converted their offices into business centres to discontinue with such attitude as it would no longer be allowed.

Last modified on Wednesday, 19 July 2023 07:02

The National Broadcasting Commission (NBC) says it will soon meet with stakeholders in the broadcasting industry to review the Nigeria Broadcasting Code, this is as the commission revealed that it is considering upward review of television and radio stations licence fees.


NBC’s Director General Malam, Balareba Shehu Ilelah disclosed this at a press conference in Lagos on Tuesday.


Though the press conference was called to announce the hosting of this year’s African broadcast exhibition (Africast) slated for October 24 to 26 in Lagos, Ilelah however disclosed that the broadcast code would be reviewed after all the stakeholders in the industry had made their inputs into it.


“We will seek contributions from all stakeholders in the industry to review the Nigeria Broadcasting Code. We also considering upward review of the broadcast licence for TV and radio stations”, the NBC DG said.

He said the NBC as a regulator would ensure that the broadcast media performed their roles as required by the law.

But in his contribution during the press conference, the Executive Secretary of the Broadcasting Organisation of Nigeria (BON), Dr Yemisi Bamgbose advised NBC against hiking broadcast licence fees now.

Bamgbose said it was a known fact that the broadcast industry in the country is in dire need of a lifeline, adding that increasing licence fees or any other fees might kill many of the stations.

“Let me appeal to the DG and of course the NBC not to increase the licence fee now. Broadcasters are already going through a very difficult time so I don’t think this is the best time to increase their licence fee or any other fees at all”, the BON scribe said.


Daily Trust reports that the current Nigeria Broadcast Code which was issued in 2016 and amended in 2020 contains rules and regulations guiding the industry and its practitioners in the country.

Last modified on Wednesday, 19 July 2023 07:00

You will agree with me that it has become part of the culture of President Bola Ahmed Tinubu administration to constantly dialogue with Nigerians who voted him into office. The President covenanted with Nigerians that their welfare and security will be topmost in the Renewed Hope Agenda of his government.

In the last few days, the conventional and new media platforms have become awash with stories of the government intending to embark on conditional cash transfer to vulnerable households mostly affected by the painful but necessary decision to remove subsidy from petrol.

The story has been widely reported that the Federal Government is proposing to give 12 million households from the poorest of the poor N8,000 monthly for a period of six months as government palliative to reduce the discomfort being experienced by Nigerians consequent upon subsidy removal.

A lot of ill-informed imputations have been read into the programme by not a few naysayers. The Administration believes in the maxim that when there is prohibition, there must be provision. Since subsidy, the hydra-headed monster threatening to kill the economy, has been stopped, government has emplaced a broad spectrum of reliefs to bring help to Nigerians.

While it should be noted that cash programme is not the only item in the whole gamut of relief package of President Bola Ahmed Tinubu, as a listening leader who has vowed to always put Nigerians at the heart of his policy and programme, the President has directed as follows:-

1. That the N8,000 conditional cash transfer programmed envisaged to bring succour to most vulnerable households be reviewed immediately. This is in deference to the views expressed by Nigerians against it.

2. That the whole gamut of palliative package of government be unveiled to Nigerians.

3. Immediate release of fertilisers and grains to approximately 50 million farmers and households respectively in all the 36 states and the FCT.  

The President further assures Nigerians that the N500 billion approved by parliament to cushion the pain occasioned by the end of subsidy regime will be judiciously utilised. The beneficiaries of the reliefs shall be Nigerians irrespective of their ethnic, religious or political affiliation.

President Bola Tinubu has promised to always prioritize the wellbeing of Nigerians and he is irrevocably committed to the vow. A number of decisions taken so far by this Administration have buttressed this stance.

You will recall that the President took a similar decision after listening to complaints from the business community/stakeholders about burdensome taxes, particularly multiplicity of taxes they are made to experience. This warranted the signing of four (4) Executive Orders cancelling some classes of taxes, while suspending the implementation dates of others.

In addition, the President has also set up a Tax Reform/Fiscal Policy Committee to bring up recommendations that will engender a wholesome fiscal environment for the country and remove anti-business barriers.

I wish to assure Nigerians that President Tinubu will continue to be a listening leader whose ears will not be dull to the views expressed by the citizenry. The President believes government exists to cater for the interest of the people and he has demonstrated this so clearly.

Thank you all.

 

Dele Alake

Special Adviser to the President

(Special Duties, Communications and Strategy)

July 18, 2023

The Nigerian Government announced it has ensured the sum of the disbursement of N308.45 billion promissory notes to 199 Nigerian exporting companies.

They also added that in a bid to boost the promotion of non-oil exports in Nigeria, a Memorandum of Understanding (MoU) is in the works with the National Universities Commission (NUC), to teach export promotion in Nigerian Universities.

This was disclosed on Monday by The Executive Director of NEPC, Dr Ezra Yakusak, in Abuja at the presentation of the first half-year progress report on the non-oil export performance for 2023.

Food processing

Dr Yakusak revealed that NEPC has concluded plans for the establishment of a cashew processing plant in Ogbomosho, Oyo State.

He said  that the development was in line with the council’s mandate and efforts to strengthen its value-addition campaign, adding:

  • “NEPC under its export development programme for priority products has concluded plans for the establishment of a cashew processing plant in Ogbomosho, Oyo State on a Public Private Partnership (PPP) arrangement.”

The NEPC chief noted that Ogbomosho cashew is globally acknowledged as a brand for good quality and thereby highly sought after in the international market, adding they havesince commenced processes towards setting up the processing plant.

University curriculum

Yakusak said that a Memorandum of Understanding (MoU) would soon be signed between NEPC and the National Universities Commission (NUC), to promote export promotion in Nigerian universities.

He added that when introduced would go a long way in enabling undergraduates to become employers of labour and be self-reliant after graduation.

  • “This initiative will further complement the efforts of NEPC at promoting the “Export4Survival Campaign’’ which is targeted at increasing the export of Nigeria’s non-oil product.”

Other developments

The NEPC revealed it inaugurated an Export Trade House (ETH) in Hunan Province, China in April 19, 2023.

Yakusak noted that this is part of NEPC’s efforts to increase the export of Made-in-Nigeria products to China.

  • “The establishment of the ETH is a collaborative effort between the NEPC and Zeenab Foods Limited under a Public-Private-Partnership arrangement.
  • “With the opening of the China ETH, the Council has launched and operationalised a total number of four ETHs which are located in Cairo, Egypt, Lome in Togo, Nairobi in Kenya and China.
  • “Plans are underway to establish another ETH in Dubai, United Arab Emirates (UAE)”.

Promissory notes

They revealed that they have ensured the disbursement of N308.45billion promissory notes to 199 Nigeria exporting companies, as non-oil exports in the first half of 2023 generated 2.539 billion dollars adding:

  • “Following the approval of the Federal Government, the disbursement to 199 exporting companies under the Export Expansion Grant (EEG) Scheme has since been completed.”