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Nigerians might be hit with higher ticket price as airlines battle fuel scarcity, fuel price increase 

Nigerians should brace up for a possible hike in ticket price as airline companies are struggling to lay their hands on aviation fuel (known as Jet A1). The scarcity has led to a price hike in the market.

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Aviation sector to contribute over N1.2 trillion to Nigeria's GDP by 2020, Nigerians might be hit with higher ticket price as airlines battle fuel scarcity, fuel price increase , Aviation: Aviation sector gasps for stimulus in worst ever crisis

Nigerians should brace up for a possible increase in ticket price as airline companies are struggling to lay their hands on aviation fuel (known as Jet A1). The scarcity has led to a price hike in the market.

Fuel marketers are said to be selling to the highest bidders. This means that only the airline companies which are willing to pay more are getting get fuel.

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It was disclosed that the price of aviation fuel had gone up from N200/N220 to between N250, N255 and N270. This rise in price seems to have no end for the moment, and if the scarcity continues, there is a certainty that the price will keep rising. 

[READ MORE: Ethiopian Airlines leaves Enugu Airport to begin flight operation in Rivers State]

Aviation fuel, fuel price, scarcity

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According to a report, the fuel price is higher in Abuja compared to Lagos State.

“Price has increased and domestic airlines, especially when they want to refill in Abuja, have to prepay and wait to be allocated. But in Lagos, it is cheaper than outstations because of the time it takes for trucks to get to those places,” an inside source said in the report. 

While the reason for the scarcity is not known yet, a marketer disclosed that, “We don’t produce aviation fuel. So, if something happens at the point of importing it, the marketers can spread the cost.”

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Impact of the fuel price hike: The scarcity seems to have changed the routine operation of the domestic airlines, as they are now compelled to pay ahead in order to get the aviation fuel before their flight operation. 

This might also cause flight delays. Already, in the first six months of this year, the aviation sector recorded 16,429 flight delay, and that number might significantly increase if the fuel scarcity lingers for a long period. 

Also, fuel scarcity and increase in fuel price might affect flight tickets, as airline companies might not want to bear the cost alone. The domestic airlines might spread the cost around just like the fuel marketer did because fuel accounts for 30% to 40% of Airline’s operation costs. 

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[READ ALSO: Med-View Airline clears the air over operations suspension claim]  

Patricia

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]

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Tech News

Gokada Founder Fahim Saleh murdered in New York apartment

Mr. Fahim Saleh’s body was found decapitated and dismembered with an electric saw.

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Gokada Founder Fahim Saleh murdered in New York apartment

Fahim Saleh, the entrepreneur who founded Gokada, has been murdered in his luxury New York City apartment according to the New York Times.

Police detectives in New York disclosed that  Mr Saleh’s body was found decapitated and dismembered with an electric saw. His head, limbs, and torso were said to have been found in different parts of the apartment after whoever murdered him tried to clean up the crime scene.

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The police also revealed that plastics bags were found on the scene of the murder, which they say could have been an effort to “clean up” evidence of the murder.

The casualty was identified as 33 years old, Fahim Saleh, tech entrepreneur and gokada founder who owned the apartment. His body was found by his sister, 3:30 pm New York time after she went to check on him after not hearing from him in 24 hours, calling the police immediately after finding the body.

Police also believe his sister arrivals, may have interrupted the evidence clean up, as the electric saw was still plugged in. Police are investigating it as a case of homicide

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(READ MORE:Bike-hailing firms in talks with Lagos State to resume operations)

Surveillance video showed Mr. Saleh entering the elevator with someone else in a black mask and suit, the person also follows Saleh as he enters his apartment, and a fight began between the 2, his sister arrived shortly after. Police say there is a second exit through a service entrance in the apartment.

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Fahim Saleh was born in Saudi Arabia to Bangladeshi parents before settling on New York with his family and started coding as a teenager. He founded PrankDial after graduating from Bentley University where he recorded his first success in tech.

He founded the bike hailing company Gokada, which began operations in Lagos 2 years app Gokada has raised $12.4 million according to Startup listing site Crunchbase, during their venture capital raise of $5.3 million in 2019, Saleh announced plans to expand Gokada services into a club with restaurants, letting drivers relax and get things they need from a the Gokada shop such as food.

Gokada had to reduce operations in Lagos after the February Okada ban, the Lagos State Government banned okada services in Apapa LGA, Apapa Iganmu LCDA, Lagos Mainland LGA, Yaba LCDA, Surulere LGA, Itire-Ikate LCDA, and Coker-Aguda LCDA,  Ikeja LGA, Onigbongbo, LCDA, Ojodu LCDA, Eti-Osa LGA, Ikoyi-Obalende LCDA, and Iru-Victoria Island LCDA, Lagos Island LGA and Lagos Island East LCDA.

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Saleh said, “The ban affects them all, restricting their movements from six local government areas and nine local council development areas. These areas are revenue drivers for these bike-hailing services.”

“What I will tell you is that Gokada is not just a business, it’s a mission. And every part of that mission is to always be safe, provide jobs. We did things that no one else (competitors) did in the market at the time. We provided a helmet that was certified by the Department of Transportation, US Department.”

 

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Patricia
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Coronavirus

Moderna’s shares gain over 16% as COVID-19 vaccine passes first human trial

Participants received two doses of the potential vaccine.

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Moderna COVID-19 vaccine passes safety test on animals

Moderna’s share price gained over 16% on Tuesday after the U.S drugmaker disclosed that its potential vaccine in containing the COVID-19 virus had produced a “robust” immune response in all the 45 patients in its first phase of the human trial, according to data released yesterday night in the peer-reviewed New England Journal of Medicine.

In a report credited to CNBC, about 45 patients produced neutralizing antibodies, which scientists believe is important for building immunity. It also provided more promising data that the vaccine may give some protection against the coronavirus. In the trial, each participant received a 25, 100 or 250 microgram dose, with 15 people in each dose group. Participants received two doses of the potential vaccine.

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“After two vaccinations, the COVID-19 vaccine generated a “robust” immune response in all participants in all dose cohorts,” Moderna said. The company also disclosed that the levels of neutralizing antibodies in patients in the high dose group were fourfold higher than in recovered COVID-19 patients.

“These Phase 1 data demonstrate that vaccination with mRNA-1273 elicits a robust immune response across all dose levels and clearly support the choice of 100 µg in a prime and boost regimen as the optimal dose for the Phase 3 study,” Moderna’s chief medical officer, Tal Zaks, said in a statement. “We look forward to beginning our Phase 3 study of mRNA-1273 this month to demonstrate our vaccine’s ability to significantly reduce the risk of COVID-19 disease.”

Quick fact about COVID-19: Although for some individuals, the COVID-19 virus causes only mild illness, it can make other individuals seriously ill. The disease can be very fatal, especially among older individuals, and those with compromised immunities (such as diabetes, high blood pressure, or heart problems) appear to be more susceptible.

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Recall that about a month ago, Nairametrics reported news of a series of tests carried on laboratory mice with Moderna Inc’s COVID-19 vaccine showing hope that it might not increase the risk of more serious diseases and that one dose might provide protection against the COVID-19 virus.

Moderna also disclosed that the COVID-19 vaccine was generally well-tolerated, though more than half of the participants reported mild or moderate symptoms such as fatigue, muscle aches, or pain at the injection site.

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Financial Services

How to access new CBN’s Agric fund

Each non-interest deposit Bank to set aside 5% of its PAT annually as contribution to the Fund.

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Economic Growth, CBN, Governor, Emefiele, CBN releases new capital base, sanctions for Microfinance Banks, Nigerian Banks broadly positive after naira devaluation, Naira hits N465 to $1, Central Bank begins disbursing $100million to hit at currency speculators

The Central Bank of Nigeria (CBN) has unveiled guidelines for a Non-Interest Financial Institutions under its Agri-Business, Small and Medium Enterprise Investment Scheme (AGSMEIS) and Micro, Small and Medium Enterprises Development Fund (MSMEDF).

This was disclosed by the apex bank via its website on Tuesday. The guidelines also included the Accelerated Agricultural Development Scheme (AADS) and seven other intervention schemes in its bouquet.

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How the AGSMEIS works

* The CBN would create a Fund to be known as ‘AGSMEIS Non-Interest Fund’ that will be domiciled in a dedicated account with the apex bank.

* Each non-interest deposit Bank (full-fledged or window) was to set aside 5% of its Profit After Tax (PAT) annually as contribution to the Fund.

* Each non-interest Deposit Bank was also to transfer its contribution to the CBN not later than 10 working days after the Annual General Meeting (AGM) of the participating bank.

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* Eligible activities under the Scheme are businesses across the agricultural value chain, covering production, inputs supply, storage, processing, logistics and marketing.

* Others included MSMEs in the real sector including manufacturing, ICT, mining, petrochemicals and the creative industry as well as other activities as the CBN may determine from time to time.

How to access fund

The application of the Fund shall be categorised into three broad components. They are debt, equity and developmental components.

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•  The debt component shall constitute 50% of the fund which shall be disbursed as financings to eligible businesses through Non-Interest Deposit Money Banks.

*Asset purchased shall be registered with the National Collateral Registry (NCR).

* Financing limit: N10,000,000

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* Mark-up: 5% per annum

* Tenor: Up to 7 years (depending on the nature/gestation period of the
project)

* Moratorium: Maximum of 18 months for principal and 6 months on mark-up.

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Documentation Requirements

* Duly completed application form.

* Bank Verification Number (BVN).

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* Certificate of Training from recognised Entrepreneurship Development Institution (EDI) or evidence of membership of organised private sector association.

* Letter of Introduction from any of the following: Clergy, Village Head, District Head, Traditional Ruler, senior civil servant etc (for individuals, microenterprises only).

* Evidence of registration of business name or certificate of incorporation and filing of annual returns (where applicable) in compliance with the provisions of the Companies and Allied Matters Act (1990).

Back story

Last month, the CBN announced that it has unveiled a framework that will integrate a non-interest window in all its intervention programmes aimed at supporting businesses and households that have been impacted negatively by the COVID-19 pandemic.

In a statement, the apex bank said the integration will focus mainly on its Anchor Borrowers’ Programme (ABP) as well as the Targeted Credit Facility (TCF).

Why it matters: The Scheme will be for start-ups, business expansion or revival of ailing companies and shall be in compliance with provisions of BOFIA (1991) as amended and the principles underpinning operations of NIFIs.

“The MSMEDF for NIFIs guidelines are aimed to channel low return funds to the MSME sub-sector of the Nigerian economy through participating Financial Institutions (PFIs) to enhance access by MSMEs to financial services.

“Similarly, the non-interest guidelines for the AADS are aimed at engaging a minimum of 370,000 youths in agricultural production across the country between now and 2023, in order to reduce unemployment among the youth in the country,” it added.

While the specific objectives of the MSMEDF for NIFIs are to increase the productivity and output of microenterprises, job creation and engender inclusive growth, those of the AADS are to increase agricultural production towards food security, job creation and economic diversification.

AADS

* It is targeted at Nigerian youth between 18 and 35 years, seek to promote interaction among state governments, the CBN and other stakeholders in the agricultural value chain in each state.

* To enhance job creation in the agricultural sector, with focus on two crops where States have comparative advantage.

* Others were the Real Sector Support Facility (RSSF) revised guidelines (V3); the Real Sector Support Facility (RSSF) among others.

Download the guidelines here

Patricia
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