News
$1.36bn under threat as local, foreign airlines battle over BASA equity
There is another twist to the demand of foreign airlines operating in Nigeria for their $600 million trapped in the country’s foreign exchange sourcing difficulties.
The foreign airlines collect Naira for their tickets from customers and exchange same for foreign currencies for their operations. But recently they said the they have been unable to get the exchange executed through the official foreign exchange market due to scarcity of foreign exchange resources.
However, the Airline Operators of Nigeria, AON, is now saying that the money is not trapped, advising the foreign airlines to go to the parallel market to exchange their Naira revenue.
AON maintained that the foreign airlines’ demand is not legitimate, adding that the Central Bank of Nigeria, CBN, should not be dragged into their plight, adding that there is also the option of Investors and Exchange Foreign Exchange, I&E FX window where they can access forex.
The AON noted that local airlines have the capacity and the aircraft to fly passengers from Nigeria to other countries but are being denied the opportunity by other countries.
But stakeholders also argued that 80 per cent of commercial aviation earnings come from foreign airline operations and that domestic airlines need to move their operations to international territories where they can earn huge income.
Also, an African aviation management consultancy and operational service provider based in London, Dre aviation, lamented that it is absurd forcing any member of the international aviation community to the parallel market (also known as black market) to source forex for repatriation of their profits.
BASA challenges
Meanwhile, finding indicates that with the over 95 Bi-Lateral Air Service Agreements, BASAs, with countries around the world, the country is only able to reciprocate six per cent since inception, whereas, 27 countries fly into Nigeria.
BASA is a bilateral aviation safety agreement that facilitates the technical assessment process of two signatory countries.
According to the Principal Managing Partner, Avaero, Sindy Foster, “Nigeria has signed over 95 Bilateral BASAs with countries around the world. Currently, 27 airlines fly in Nigeria. However, only Air Peace flies internationally to eight countries, with two new routes coming soon.
“For the first two years of operation the national carrier will be competing with the domestic airlines, so will not be doing anything towards implementation of BASA agreements.”
Violation of BASA
Reacting to the foreign airlines’ demand, the Chairman of United Nigeria Airlines, Obiora Okonkwo, noted that the Nigerian government has not in any way violated its BASA with the airlines.
He noted that the CBN does not regulate how much airlines sell their tickets, adding that, “They have also given a public notice that there is a scarcity of forex, and companies can go source their funds from the parallel market.
“There are many parallel markets, we do source from I& E windows, the only difference is when you have to buy from CBN, it could be coming at about N450 to $1 and in I&A window, you can negotiate and it could be sold at N650 to $1.
“If we the local operators can do that, what has anybody done to offend the BASA agreement when you are asked to go source from other places? Their money is not confiscated, nobody says they should not repatriate, but it is just simply going to other places. Why are these airlines not doing this?
“I am happy they are calling for meetings, but I hope the agenda would include how much they are selling their tickets because their ticket prices are in foreign currencies and converted to Naira.
“As long as their ticket for instance is $5,000 and the value Nigerians are paying for it is N2.5 million, which is about N450 to $1, then I have a legitimate case to say we are bound by this rate. But since they are free to fix their ticket price at a rate that would enable their business to move on, you cannot sell at the rate of N700 or N800 and come back to say you want to transmit your money at N450.
“When we talk about this, it looks like they have not been getting their money, last two weeks, there was a huge chunk of money that was made available for Emirates airlines in particular, We the AON kicked against it because we have a lot of invoices lined up in different banks.
“This forex issue is affecting everybody. Today, manufacturers go to the bank to put in an invoice of $1 million and at the end of the day they might be lucky to get $50,000.
“In a situation like this, these airlines could have a more creative way of spending their money, if there are bills they are paying in foreign currency they could negotiate with the Nigerian Civil Aviation Authority, NCAA, or other authority to give them a waiver so that they can use Naira to pay for these bills.
“If they want $400 million as at today, they can talk to about two or three banks in their country who will get them an I & E window of N700 and this will be over, if we the local operators can do that, why can’t they?
“We are watching, if CBN can give them the said amount, we will be happy because we know the money is there. We will also put up our bills which are also landing. They should also give us local operators as foreign airlines cannot be given preferential rates.”
$1.36bn under threat as local, foreign airlines battle over BASA equity
.
There is another twist to the demand of foreign airlines operating in Nigeria for their $600 million trapped in the country’s foreign exchange sourcing difficulties.
The foreign airlines collect Naira for their tickets from customers and exchange same for foreign currencies for their operations. But recently they said the they have been unable to get the exchange executed through the official foreign exchange market due to scarcity of foreign exchange resources.
However, the Airline Operators of Nigeria, AON, is now saying that the money is not trapped, advising the foreign airlines to go to the parallel market to exchange their Naira revenue.
AON maintained that the foreign airlines’ demand is not legitimate, adding that the Central Bank of Nigeria, CBN, should not be dragged into their plight, adding that there is also the option of Investors and Exchange Foreign Exchange, I&E FX window where they can access forex.
The AON noted that local airlines have the capacity and the aircraft to fly passengers from Nigeria to other countries but are being denied the opportunity by other countries.
But stakeholders also argued that 80 per cent of commercial aviation earnings come from foreign airline operations and that domestic airlines need to move their operations to international territories where they can earn huge income.
Also, an African aviation management consultancy and operational service provider based in London, Dre aviation, lamented that it is absurd forcing any member of the international aviation community to the parallel market (also known as black market) to source forex for repatriation of their profits.
BASA challenges
Meanwhile, finding indicates that with the over 95 Bi-Lateral Air Service Agreements, BASAs, with countries around the world, the country is only able to reciprocate six per cent since inception, whereas, 27 countries fly into Nigeria.
BASA is a bilateral aviation safety agreement that facilitates the technical assessment process of two signatory countries.
According to the Principal Managing Partner, Avaero, Sindy Foster, “Nigeria has signed over 95 Bilateral BASAs with countries around the world. Currently, 27 airlines fly in Nigeria. However, only Air Peace flies internationally to eight countries, with two new routes coming soon.
“For the first two years of operation the national carrier will be competing with the domestic airlines, so will not be doing anything towards implementation of BASA agreements.”
Violation of BASA
Reacting to the foreign airlines’ demand, the Chairman of United Nigeria Airlines, Obiora Okonkwo, noted that the Nigerian government has not in any way violated its BASA with the airlines.
He noted that the CBN does not regulate how much airlines sell their tickets, adding that, “They have also given a public notice that there is a scarcity of forex, and companies can go source their funds from the parallel market.
“There are many parallel markets, we do source from I& E windows, the only difference is when you have to buy from CBN, it could be coming at about N450 to $1 and in I&A window, you can negotiate and it could be sold at N650 to $1.
“If we the local operators can do that, what has anybody done to offend the BASA agreement when you are asked to go source from other places? Their money is not confiscated, nobody says they should not repatriate, but it is just simply going to other places. Why are these airlines not doing this?
“I am happy they are calling for meetings, but I hope the agenda would include how much they are selling their tickets because their ticket prices are in foreign currencies and converted to Naira.
“As long as their ticket for instance is $5,000 and the value Nigerians are paying for it is N2.5 million, which is about N450 to $1, then I have a legitimate case to say we are bound by this rate. But since they are free to fix their ticket price at a rate that would enable their business to move on, you cannot sell at the rate of N700 or N800 and come back to say you want to transmit your money at N450.
“When we talk about this, it looks like they have not been getting their money, last two weeks, there was a huge chunk of money that was made available for Emirates airlines in particular, We the AON kicked against it because we have a lot of invoices lined up in different banks.
“This forex issue is affecting everybody. Today, manufacturers go to the bank to put in an invoice of $1 million and at the end of the day they might be lucky to get $50,000.
“In a situation like this, these airlines could have a more creative way of spending their money, if there are bills they are paying in foreign currency they could negotiate with the Nigerian Civil Aviation Authority, NCAA, or other authority to give them a waiver so that they can use Naira to pay for these bills.
“If they want $400 million as at today, they can talk to about two or three banks in their country who will get them an I & E window of N700 and this will be over, if we the local operators can do that, why can’t they?
“We are watching, if CBN can give them the said amount, we will be happy because we know the money is there. We will also put up our bills which are also landing. They should also give us local operators as foreign airlines cannot be given preferential rates.”
“If You Have Evidence Against Stanley Mbam, Charge Him; Otherwise, Release Him” — Oganiru Izzi
A socio-cultural organisation of Izzi extraction, Oganiru Izzi, has challenged Ebonyi State Governor, Chief Francis Ogbonna Nwifuru, to either release the state’s sacked Commissioner for Works, Mr Stanley Mbam, or charge him before a competent court if the government has credible evidence of wrongdoing against him.
The group said the continued detention of the former commissioner without a formal charge raises concerns about due process, constitutional rights and the rule of law.
The leader of Oganiru Izzi, Mr Godwin Mbam, made the demand while speaking with correspondents of National Issue Newspapers at the Crack Department of the Ebonyi State Police Command in Abakaliki.
Mbam condemned what he described as the prolonged detention of Stanley Mbam without allowing a court to determine whether he had committed any offence.
He challenged the state government to produce evidence if it believes the former commissioner committed a criminal offence.
“If there is credible evidence against him, charge him to court and let the court decide. If there is no case against him, he should be released,” Mbam said.
He also appealed to the Ebonyi State Police Command to uphold the Constitution and resist any pressure that could result in unlawful detention.
Vanco Flyover: “We Will Reveal the Full Details”
Mbam also issued a three-day challenge to Governor Nwifuru, declaring that if the former commissioner was not released or charged to court, his organisation would make public what it described as the “full details” of the Vanco Flyover project.
According to him, the proposed disclosure would address issues surrounding the project, including its funding, payments, contractual arrangements and other financial details.
“We will let the world know the full details of the Vanco Flyover and how the funds were utilised,” he warned.
He further challenged the state government to demonstrate transparency by making relevant documents concerning the project available to the public.
“What About the Alleged ₦1.5 Billion Forfeiture?”
The Izzi group also questioned what it described as the selective application of the state government’s anti-corruption campaign.
Mbam referred to allegations involving an account reportedly frozen by the Economic and Financial Crimes Commission (EFCC) and an alleged ₦1.5 billion forfeiture to the Federal Government.
He questioned why, according to him, the governor had allegedly not taken similar action if the facts surrounding the matter warranted it.
Mbam stressed that he was not opposed to the fight against corruption but insisted that any anti-corruption campaign must be comprehensive, transparent and applied equally.
“If Governor Nwifuru wants to fight corruption, let him fight it holistically. Nobody should be targeted while other serious allegations are ignored,” he said.
“If Nwifuru Says He Knows Nothing, We Will Produce the Facts”
Mbam further challenged Governor Nwifuru to publicly state whether he was aware of alleged corruption issues within the Ministry of Works.
“If Nwifuru publicly claims that he is unaware of corruption in the Works Ministry, I will make public the facts available to me. The facts will shock the state,” he declared.
He insisted that the matter should not degenerate into a political vendetta, arguing that the appropriate place to determine criminal liability is a court of law.
According to him, the people of Ebonyi State deserve clear answers concerning the Vanco Flyover and other issues involving public funds.
“Everybody Should Be Subject to the Law”
The Oganiru Izzi leader maintained that the controversy should be resolved through transparency, documentary evidence and due process.
“If there is a case, charge him. If there is no case, release him. The government cannot claim to be fighting corruption while abandoning the principles of justice and the rule of law,” he said.
Mbam warned that failure to address the issues could compel the organisation to make further disclosures concerning the Vanco Flyover and other matters it considers to be in the public interest.
By Our Correspondent
As Nigeria celebrates its 66th Independence Anniversary, the candidate for the House of Representatives seat representing the Ezza South/Ikwo Federal Constituency, Hon. Chief Kevin Tobias Chukwu, has called on Nigerians to remain hopeful and committed to building a better country.
Chukwu, also known as Ochiri Ozua 1 of Amagu Ikwo, made the call in an Independence Day message to Nigerians, particularly the people of Ezza South/Ikwo Federal Constituency and Ebonyi State.
He described the anniversary as not only a moment for celebration but also an opportunity to reflect on the state of the nation and the responsibilities of leaders in building a Nigeria that meets the aspirations of its citizens.
According to him, Nigeria’s journey since independence has been marked by significant challenges, with millions of citizens currently facing economic hardship, while young people continue to search for opportunities and many communities contend with insecurity and uncertainty.
Despite these challenges, the Ebonyi politician said the resilience of Nigerians remained a source of hope for the country’s future.
“I believe in the resilience of our people. I believe in the ingenuity of our youths, the strength of our women, the wisdom of our elders and the determination of ordinary Nigerians who wake up every morning and refuse to give up on this country,” he said.
Chukwu, however, stressed that hope must be matched by responsible leadership, arguing that public office should be viewed as a responsibility rather than a privilege.
He called for leadership that prioritises the protection of lives, creation of economic opportunities, provision of infrastructure, strengthening of institutions and responsible management of national resources.
The candidate also emphasised the need to create an environment where young Nigerians can pursue successful lives within the country and where hard work, merit and enterprise are rewarded.
He said Nigeria had “come too far to surrender to hopelessness,” urging citizens and leaders alike to remain committed to the country’s progress.
“A better Nigeria is still possible, but it will require responsible leadership, accountable institutions and citizens who refuse to give up on their country,” he said.
Chukwu concluded by expressing optimism about Nigeria’s future, declaring: “Nigeria will rise. Nigeria must rise. And together, we must build the Nigeria we deserve.”
He also paid tribute to the nation’s past heroes, praying that their sacrifices would continue to inspire the country.
“May the labour of our heroes past never be in vain,” he said, as he wished Nigerians a happy 66th Independence Anniversary.
By Okey Maduforo, Awka
As Nigeria celebrates its 66th anniversary of independence from colonial rule, democracy in the country has continued to evolve and deepen, the Anambra State Chairman of the All Progressives Congress (APC), Senator Emma Anosike, has said.
Anosike made the observation in a message to mark Nigeria’s Independence anniversary, noting that despite the challenges the country had encountered since 1960, its democratic system had continued to improve under successive administrations.
According to him, since the return to democratic rule in 1999, Nigeria has witnessed relatively smooth transitions from one administration to another, while citizens have continued to exercise their fundamental rights to hold governments accountable for their performance.
“Before the return of the democratic process, it was indeed difficult and near taboo to challenge the leadership of the country, and those who may have attempted it in the past faced grave consequences.
“Similarly, we have had smooth transitions from one dispensation to another, producing five presidents through the ballot and not through the barrel of the gun. These elected presidents were produced by different political parties.”
Anosike said the administration of President Bola Ahmed Tinubu had sustained the country’s democratic principles and created an avenue for Nigerians, irrespective of tribe, race or religion, to express their views on government policies and programmes.
“Under the stewardship of President Bola Ahmed Tinubu, Nigerians have been enjoying the freedom to express themselves over issues, policies and programmes of government, and those expressions have been shaping and guiding the administration of Mr President,” he said.
The APC chairman said Nigeria’s 66th independence anniversary provided an opportunity for citizens to reflect on the country’s journey as a nation and the progress made since independence.
He said President Tinubu’s Independence Day broadcast had offered another opportunity for Nigerians to renew their hope for a greater and more prosperous country.
Anosike also commended what he described as the “enormous infrastructural development” taking place across the country under the Tinubu administration.
He urged Nigerians to continue to support and have faith in the administration as the country approaches the 2027 general elections.
An Elder Statesman, Chief Hycienth Ngwu, has called on political leaders and policies formulators to ensure governmental policies and programmes directly touch lives of the people and reduce hardship in the country.
Ngwu, who is a prominent community leader in Enugu, urged Nigerians to maintain peace within neighbourhoods and communities, as no meaningful development can take place without peace.
The statesman made the call on Thursday in Enugu while reacting to the developmental efforts of Nigeria at its 66th Independence.
He said that previous and present administrations had put in place policies and programmes to reset the socioeconomic fabric of the nation.
Ngwu said that while the removal of fuel subsidy, and unification of the foreign exchange had good intentions, their impact is yet to reflect on the lives and livelihoods of vast majority of Nigerians.
He urged leaders to ensure that public resources were properly managed while citizens remained patient with reforms aimed at improving the socioeconomic status of the country.
The elder statesman noted that at 66th independence, the country was still struggling on keeping its peace and co-existence as a country; adding that the founding leaders of Nigeria envisaged a closely united, bonded and peaceful country.
He called for return to policies that promote local production, indigenous industries and entrepreneurship, arguing that excessive dependence on imports had continued to weaken the country’s productive capacity.
According to him, we are yet to achieve economic independence even as we needed to do more on non oil revenue earns as the greater part of the world is moving towards greener and clean energy.
“Greater emphasis should be on skills acquisition, creativity and entrepreneurship education system, as academic qualifications without practical skills could leave graduates dependent on scarce white collar jobs.
“We ought to be economically productive nation capable of producing and exporting goods while developing its human capital,” he said.
Ngwu noted that current insecurity and social instability could be partly attributed to poverty and ignorance, while calling for greater honesty and trust between leaders and citizens.
“Corruption, tribalism and selfishness must be addressed if Nigeria is to achieve peace and lasting progress,” he added.
He also called for the scrapping of state electoral commissions as they have not helped in deepening democracy at that level. The National Election body should take over that responsibility.
As Nigeria marks its 66th Independence Day, Macmaduson Concepts Limited, a leading provider of HVACR,industrial parts, sensors, electrical and plumbing materials, has extended warm Independence Day greetings to its customers, clients and business partners across the country.
In a goodwill message to mark the occasion, the company expressed appreciation to its valued customers for their continuous support, trust and partnership over the years.
Macmaduson Concepts Limited, which specialises in HVACR,Industrial Materials, sensors, air-conditioners, refrigerators, cold rooms, chillers, refrigerants, electrical materials and plumbing materials, said the occasion provides an opportunity to celebrate Nigeria and reflect on the nation’s journey.
The company wished Nigeria continued growth, unity, peace and prosperity, while expressing hope for a brighter future for all Nigerians.
The message from the company reads in part:
At Macmaduson Concepts Limited, we celebrate our great nation, Nigeria, and appreciate our valued clients for their continuous support, trust and partnership. May Nigeria continue to grow in unity, peace and prosperity.”
The company concluded its Independence Day message with the theme: “One Nation, One People, A Brighter Tomorrow.”
Happy Independence Day, Nigeria!
Happy 66th Independence Anniversary from Macmaduson Concepts Limited.
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