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Business News

Aviation sector to contribute over N1.2 trillion to Nigeria’s GDP by 2020

The Minister of Aviation of Nigeria, Hadi Sirika has unveiled his plan to increase the country’s GDP by 1% in 2020, by contributing over N1.2 trillion.

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Hadi Sirika, Aviation, FG approves construction, FG restores hope for suspended Nigeria Air ,Not less than N10 billion needed for Enugu Airport to be operational again – Sirika 

The Minister of Aviation of Nigeria, Hadi Sirika has unveiled his transformational plan for the Nigerian Aviation sector, promising to increase the sector’s Gross Domestic Product (GDP) contribution by 1% in 2020, an estimation of over N1.2 trillion.

Sirika, giving more details on his vision for the sector, proposed an industry that would provide utmost comfort, safety, and security for majority of passengers.

What this means: A look into the Nigeria’s aviation sector reveals that the sector currently contributes N149.4 billion, an estimation of 0.12% (as at 2018) to the economy. Going by the move to increase the GDP by 1%, Nigeria could see more than 700% increase in two years by the end of 2020.

[READ MORE: Nigeria’s aviation industry loses U.S. funding]

Sirika is focused on creating a thriving industry where entrepreneurs can invest and make money, to aid upward mobility of the sector.

The industry itself is a catalyst for economic growth and development of any nation, especially Nigeria with 200 million people, 923,766 square kilometres of massive land. The 20% of the request of demand of Africa economy is in Nigeria. Nigeria is at the centre of Africa, centre of the world, which supports air transportation.

“Air transportation itself by value is the highest contributor to any economy. Aviation links businesses, links nations, links markets, people, traditions, industry, culture and tourism. From the little we did, we have not even implemented the road map fully. We were able to push the contribution to GDP from 0.4%to 0.6%. And our hope is that within the next one year, it goes to 1%.

Aviation

How it will be achieved: Sirika explained these plans could be achieved by raising the standard of the airports to a great level of efficiency.

We also need airlines to feed into the airports – a robust airline that is efficient. Secondly, you need a Maintenance, Repair and Overhaul (MRO) Centre – to maintain those aircraft when they come in or go out. You cannot come here and have a landing gear issue and wait for some people to come from Germany to fix it.

The third is the need for aerospace – to go into research and development for the future. We cannot continue to be consumers.”

[READ MORE: Reps raise concern over Aviation Ministry’s debt profile]

He recalled that Brazil is now manufacturing airplanes while Nigeria has plunged further behind.

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We also started long time before many of these countries. China just started aviation a few years ago, China has started manufacturing aircraft. We can do it. We can do so many things in aviation. Dubai started over ten years ago, and today they are producing parts of airplanes. If you had flown a B787, you would have flown some component parts produced in Dubai.

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Hadi Sirika

Hadi Sirika,
Minister of State (Aviation)

We need an aviation leasing company, where we can access cheap funds at one digit that you can invest in aviation businesses to grow them. The challenge is finance, so, we think we should establish a leasing company that can handle that. Then, we have our training institution with manpower development.”

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A Nairametrics report stated that the aviation Minister described Nigeria’s aviation sector as a trillion-dollar GDP. That same claim has now resurfaced. Will Nigeria be able to achieve these claims before 2020?

[READ MORE: Nigeria’s foreign reserves to increase by $150 billion in 10 years – FG]

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Reincarnated as a lover of stocks, Angel investors, seed funds, and anything aligned to tech or startups raising money, Joseph's work at Nairametrics involves following the money to wherever it leads. Before joining Nairametrics, he won an investigative journalism fellowship with ICIR, appeared in several national dallies, with hard-hitting opinions, features and investigative pieces. He has also engaged in content marketing and copywriting for a top e-commerce firm in Nigeria.

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Companies

Africa Prudential proposes dividend of N1 billion for shareholders

Africa Prudential Plc has proposed a sum of N1 billion as dividend for shareholders.

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African Prudential could be worth more than N4.55

The Board of Directors of Africa Prudential Plc has proposed a sum of N1 billion as dividend to shareholders for the period ended 31st of December 2020.

This is according to a disclosure signed by the firm’s secretary, Joseph Jibunoh and sent to the Nigerian Stock Exchange, as seen by Nairametrics.

According to the notification, the proposed dividend will be paid electronically to qualified shareholders on the 26th of March, 2021, subject to appropriate withholding tax and approval from the company’s Annual General Meeting (AGM) scheduled a day earlier.

The breakdown of the proposed dividend shows that a sum of 50 kobo will be paid for each outstanding 2,000,000,000 ordinary shares of the company, held by its shareholders, totalling N1 billion. The proposed dividend is 28.6% lower than the 2019 figures of N1.4 billion.

The comparative decline in the company’s proposed dividend for the year might be attributed to a recent dip in profit and other key metrics recorded by the firm in its latest audited financial statement for 2020. For example, the firm posted a profit of N1.45 billion for the year, indicating a decline of 13.98% YoY. In addition, its earnings per share declined by 14.29% to print at 72 kobo.

What you should know

  • Africa Prudential had recently announced the appointment of Mrs Zubaida Rasheed as Director.
  • Africa Prudential Plc, formerly known as UBA Registrars Ltd, was incorporated as a private limited liability company on 23rd March 2006. It was listed in the NSE on 17th of January, 2013.

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Corporate Press Releases

Konga launches revolutionary membership programme, Konga Prime

Konga Prime puts money back into the pockets of subscribers by helping them make great savings.

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Konga, Nigeria’s leading composite e-Commerce giant, has rolled out Konga Prime, a revolutionary membership programme, with a lot of benefits for shoppers.

Konga Prime members enjoy unlimited free shipping, have access to exclusive offers and early bird deals, among others.

The incentives-filled loyalty programme went live on Monday March 1st, 2021.

Specifically, Konga Prime brings together a suite of exciting benefits which delivers great value to subscribers, helping them enjoy exclusive deals and other incentives such as faster deliveries of their orders. In addition, Konga Prime puts money back into the pockets of subscribers by helping them make great savings, incomparable to that offered by any other retail platform.

Furthermore, members of Konga Prime including busy individuals and families get to enjoy premium access to the full range of Konga’s cutting-edge assets. Among these are its powerful e-Commerce engine and online presence as well as the nationwide reach of a growing list of over 31 stores spread across the nooks and crannies of Nigeria. With this, Konga Prime members can take advantage of nationwide delivery of their items as fast as the next day.
Also, members have the added incentive of unlimited free delivery from Konga.com and access to discounts that make shopping faster and cheaper for all categories of shoppers.

Interested subscribers can sign up for Konga Prime here: https://www.konga.com/konga-prime Membership of Konga Prime is available to all customers, effective March 1st, 2021, beginning with Lagos and Abuja, the Federal Capital Territory (FCT). Equally important, Konga is currently offering specially discounted rates for interested subscribers to sign up for Konga Prime. In other words, subscription rates for Konga Prime membership have been slashed by as much as 50% for early bird subscribers.

In Lagos, membership of Konga Prime is currently up for N1,000 a month, as against N2,000 and N2,490 for three months, instead of N4,950 along with a 7-day free trial period. For Abuja, membership rates presently stand at N1,290 a month, as opposed to N2,500 and N3,490 for three months, instead of N6,950.

Meanwhile, the Konga Prime rollout is set to be extended to other states soon.

Vice President, Konga Online, Kenny Oriola, says the initiative is one that will deliver great value for members, including exclusive access to a growing list of special offers. These include unlimited free delivery, early access to exclusive deals as well as partner benefits and rewards.

“This initiative was implemented to provide a platform that allows our esteemed customers enjoy great value, including having their orders delivered to their preferred location for free. Saving time and money is not just the end goal here, but having access to exclusive deals, and mouth-watering discounts on special products also makes this service one to subscribe to.

‘‘Today, we kick-off this initiative in Lagos and Abuja. Subsequently, other states across the country will benefit from this service. We urge all interested subscribers to take advantage of the ongoing discounted rates to sign up for this value-adding programme,’’ he disclosed.

Further, Oriola submits that in the future, Konga will leverage its wide-ranging assets to add additional benefits for members in a variety of services and offerings, adding that the list of benefits will continue to grow over time.

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