Connect with us
nairametrics

Business News

FG might dispose Nigeria Air project, as Ethiopian Airlines moves to become national carrier

Months after the Federal Government abandoned the national carrier project, Ethiopian Airlines has disclosed that the company is in talks with President Muhammadu Buhari’s administration to become the country’s national carrier.

Published

on

Ethiopian Airlines plans to become Nigeria's national carrier, Nigeria's national carrier Nigeria Air, Ethiopian Airlines crashes

Months after the Federal Government of Nigeria abandoned the national carrier project, Ethiopian Airlines has disclosed that the company is in talks with President Muhammadu Buhari’s administration to become the country’s national carrier.

The decision was made known by the Ethiopian Airlines’ Group Chief Executive Officer, Tewolde Gebremariam, who was recently in Nigeria to continue talks regarding the national carrier. He also disclosed that talks are on-going with Ghana to float theirs as well.

[READ ALSO: Economy on standstill as President Buhari delays ministerial appointments again]

Plans to establish the country’s national carrier had begun after a Committee on Establishment of National Carrier was inaugurated by President Buhari’s administration on August 25, 2015, in Abuja. The Committee submitted its report a month after. The carrier was later unveiled in London and named Nigeria Air in July 2018.

Reasons for its suspension: Preparations were suspended three months later in September 2018 due to ‘strategic planning‘, according to the then Minister of State for Aviation, Sirika Hadi. There were however claims that the delay came as a result of disagreement that ensued among the former FEC members over modality issue, as well as the uncertainty currently being witnessed over cabinet formation in this second term of the administration.

GTBank 728 x 90
2019 Budget, Hadi Sirika and Rotimi Amaechi, President Buhari passes 2019 budget, Nigeria Air, Nigeria national carrier, Hadi Siriki, Senate Committee, FG to revive national carrier

Nigeria Air

Apparently, some members of the Federal Executive Council suggested that the project should be 100% private-owned, while the others wanted the Government to make some investments towards the establishment of the national carrier. All these have been frustrating the commencement of the Nigeria Air project.

Before the suspension, Sirika had disclosed that N1.52 billion was approved to initiate the process in 2017. He later revealed that the Federal Government had earmarked N47 billion to ensure the completion of the project when talks began to revive the project. But some experts said $2.1 billion is needed to acquire some aircraft in order to float the proposed national carrier.

Deal book 300 x 250
Coronation ads

[READ ALSO: This decades-old challenge will deprive Nigerian businesses AfCFTA’s benefits]

According to Siriki, the national carrier project would be completed before President Muhammadu Buhari’s administration ends in 2023. Although he didn’t give a specific time-frame, he said he was certain Nigeria Air would lift off before President Buhari’s tenure elapses.

Ethiopian Airlines disrupting plans: That plan might be on hold with the disclosure that Ethiopian Airlines is in discussion with the government to become the national carrier. The company currently operates in Nigeria, but it is looking to start from scratch to operate Nigeria’s national carrier.

Ethiopian 737-800 Artwork K64855

Gebremariam stated there are no local airlines to bare that strong representation and able to meet local and international demands. He disclosed that discussion is also on going with private and local carriers in Nigeria.

Jaiz bank ads

“We are discussing at all levels. We are also discussing with private carriers, local carriers in Nigeria and the government but we are making it abundantly clear that we want to start a new one because starting from a clean slate or paper is advantageous because we won’t have any legacy or baggage to carry.”

Stanbic IBTC

[READ ALSO: Airtel and MTN Nigeria are sending bad signals from NSE to Glo, 9mobile]

Ethiopian Airlines’ anxiousness explained: The CEO of the company said Nigeria’s failure to have a national carrier is affecting the African market due to its market size. According to him, African airlines are losing the market share to foreign airlines, “So, this concern is part of continental concern because, in Africa, non-African carriers have the biggest shares.

It is around 80-20 ratio. 80% of the traffic between Africa and the rest of the world is carried by non-African carriers.”

The airlines considered before: Ethiopian Airlines is not the first Airline company linked to the national carrier. There were claims the FG might merge Arik and Aero in order to create a new national carrier, but AMCON denied the report.

Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Hospitality & Travel

US imposes $15,000 visa bond on 15 African countries, others

The US has issued a visa rule requiring tourist and business travelers in some countries to pay a bond of up to $15,000 in addition to the visa fees.

Published

on

Berger Paints' improved margins ride on the back of cost efficiency

The outgoing administration of US President, Donald Trump, on Monday, November 23, 2020, issued a new temporary visa rule that requires tourist and business travelers from 15 African countries and others to pay a bond of up to $15,000 in addition to the visa fees, which ranges from $16 to $300, in order to visit the United States.

According to TheCable, the US State Department said the visa bond pilot programme, expected to take effect from December 24 and end on June 24, 2021, is targeted at countries whose citizens have higher rates of overstaying B-2 visas for tourists and B-1 visas for business travelers.

The Trump administration said the six-month pilot program aims to test the feasibility of collecting such bonds and will serve as a diplomatic deterrence to overstaying the visas. Hence, overstay places significant pressure on Department of Justice and Department of Homeland Security.

The visa bond rule will permit U.S. consular officers to request tourist and business travelers from countries whose nationals had an overstay rate of 10% and above in 2019 to pay a refundable bond of $5,000, $10,000, or $15,000.

The countries whose tourist and business travelers fall into this category and subjected to the bond requirements are 24 countries, including 15 African countries. While these nations had higher rates of overstays, they sent relatively fewer travelers to the United States.

GTBank 728 x 90

The countries include Afghanistan, Angola, Bhutan, Burkina Faso, Burma, Burundi, Cape Verde, Chad, the Democratic Republic of the Congo (Kinshasa), Djibouti, Eritrea, the Gambia, Guinea-Bissau, Iran, Laos, Liberia, Libya, Mauritania, Papua New Guinea, Sao Tome and Principe, Sudan, Syria, and Yemen,

Nigerian travelers escaped paying the temporary visa rule, as their overall score was below the threshold of 10% and above overstaying rate.

Coronation ads
Continue Reading

Economy & Politics

Senate approves issuance of N148bn promissory notes to Bayelsa, 4 others

Promissory notes worth N148,141,969,161.24 has been approved by the Senate as refund to Bayelsa, Cross River, Ondo, Osun and Rivers States

Published

on

Senate approves issuance of promissory notes worth N148 billion as a refund to five states

Promissory notes worth N148.141billion have been approved by the Senate as a refund to Bayelsa, Cross River, Ondo, Osun, and Rivers States for projects executed on behalf of the Federal Government.

The approval which was given by the Senate at the plenary on Tuesday, 24th November 2020, came after the presentation of a report by the Committee on Local and Foreign Debts, led by Senator Ordia Clifford (PDP-Edo).

According to a news report by NAN, this is a go-ahead to the Federal Government, who had sought the approval of the Senate for issuance of promissory notes for a refund on federal projects executed by State governments.

The request was contained in a letter addressed to President of Senate, Dr. Ahmad Lawan by President Muhammadu Buhari, and read at plenary. The Senate referred the matter to the Committee on Local and Foreign Debts for further legislative input.

(READ MORE: FG inaugurates steering committee on Covid-19 economic recovery)

GTBank 728 x 90

Senator Ordia Clifford, while presenting the report of the committee, said the Permanent Secretary, Federal Ministry of Finance; Federal Commissioners of Finance and Works in the five states, had briefed the committee on details of the projects.

He said the Committee was presented with documents relating to the approvals of the Federal Government through the Federal Ministry of Works and Housing for the execution of the projects and certificates of completion, amongst other documents.

At the plenary today, Senator Ordia moved the motion that the Senate approves the Committee’s recommendations by approving the issuance of the promissory notes to the State governments.

Coronation ads

According to him, the amount due to the five states is N148.14billion.

  • Bayelsa was allotted N38.40billion
  • Cross River was allotted N18.39billion
  • Ondo was allotted N7.82billion
  • Osun was allotted N4.57billion
  • Rivers was allotted N78.95billion

What they are saying

The President of the Senate, Ahmad Lawan, disclosed that records showed PDP states had the highest refund, he said: “If you look at the list of states, only two are APC states and they have the least in terms of refund, this is fantastic and a mark of leadership by the Federal Government. This shows tolerance and leadership by this administration.”

Continue Reading

Business News

Interswitch Group becomes Finastra’s lead technology partner in Nigeria

nterswitch Group has unveiled a consolidated partnership with Finastra, one of the world’s most influential Fintechs.

Published

on

Interswitch Group becomes Finastra’s Lead technology partner in Nigeria

In a bid to further develop its market and expand, Interswitch Group has unveiled a consolidated partnership with Finastra, one of the world’s most influential Fintechs.

This is according to a verified post by Interswitch Group on Linkedin, as seen by Nairametrics.

What this means

The strategic partnership enables Interswitch to become Finastra’s lead technology partner and will avail the latter the opportunity to bring the broadest set of financial software solutions to financial institutions in Nigeria and across Africa, in conjunction with Interswitch’s strong understanding of the local banking and payments landscape, as well as the ability to deploy solutions across these markets.

Some of Finastra’s financial software solutions that will be incorporated into Interswitch’s digital solution include: Fusion Kondor and Fusion Trade Innovation, which will consolidate Interswitch’s position as a hub for financial solutions, including treasury and trade solutions.

GTBank 728 x 90

(READ MORE: 5 Nigerian startups selected to join 7 others at the Africa Tech Summit Connects (ATS))

What they are saying

Commenting on the partnership, the Founder and Group Chief Executive Officer of Interswitch, Mitchell Elegbe, was quoted by Tech economy saying:Our partnership with Finastra is consistent with our strategic growth plan and we both share the vision of deepening access to financial services by providing world-class technology and innovative solutions.

Coronation ads

“The partnership enables Finastra to seamlessly deploy its technology in this market. For Interswitch, we will be leveraging our proven success and expertise in delivering transaction banking solutions to support Finastra in localizing and implementing their technology in this region.’’

On the other hand, the Head of Partner Ecosystem MEA & CIS at Finastra, Hamid Nirouzad, said: “Interswitch has a proven track record of delivering solutions to commercial banks, as well as, a strong understanding of the local banking landscape across Nigeria and sub-Saharan Africa.

“Finastra is committed to providing its solutions to financial institutions across the world, and partnerships such as this will result in successful projects, with rapid delivery at a reasonable cost.”

Continue Reading