News
$600m trapped fund: IBA, Lufthansa, other foreign airlines to pull out of Nigeria
Following complaints of trapped funds, the United Arab Emirates, UAE, flag carrier, Emirates airlines, disclosed that effective from September 1, 2022, it would suspend operation in Nigeria’s airspace.
The Nigerian Civil Aviation Authority, NCAA, in response to the development, maintained that the move by Emirates airline was legitimate.
This is even as the Aviation Minister, Hadi Sirika, assured yesterday that the federal government was doing everything possible to resolve the issue.
Emirates which has taken the first step, said in a letter transmitted to the Minister of Aviation yesterday that it would, with effect from September 1, suspend operations to the country, citing its inability to repatriate the over $85 million trapped in Nigeria.
The airline’s statement read: ”Emirates has tried every avenue to address our ongoing challenges in repatriating funds from Nigeria, and we have made considerable efforts to initiate dialogue with the relevant authorities for their urgent intervention to help find a viable solution.
”Regrettably, there has been no progress. Therefore, Emirates has taken the difficult decision to suspend all flights to and from Nigeria, effective September 1 2022, to limit further losses and impact on our operational costs that continue to accumulate in the market.
”We sincerely regret the inconvenience caused to our customers, however the circumstances are beyond our control at this stage. We will be working to help impacted customers make alternative travel arrangements wherever possible.
”Should there be any positive developments in the coming days regarding Emirates’ blocked funds in Nigeria, we will of course re-evaluate our decision. We remain keen to serve Nigeria, and our operations provide much needed connectivity for Nigerian travellers, providing access to trade and tourism opportunities to Dubai and to our broader network of over 130 destinations.”
Although British Airways refused to disclose the amount of its money trapped in the country, Vanguard gathered that it was also in the region of $85 million.
A source disclosed that the airline is equally mulling the idea of stopping operations to Nigeria but failed to disclose when this would happen.
Same, it was learned yesterday, applied to some other foreign airlines operating flights into the country.
It’s a legitimate demand – NCAA
Reacting to the development, NCAA spokesman, Mr Sam Adurogboye, said if Emirates, as a foreign airline, decided not to fly into Nigeria, it was a government-to -government decision.
“Their demand is legitimate. If you travel to another country to put up an investment, you will need to transfer your money back to your country.
“The airline is running a business. The government may need to invite them for talks and look for a way of assisting them in managing the development,” he said.
Fund to hit $1bn in December – Experts
Also reacting yesterday, the principal managing partner, Avaero Capital Partners, Sindy Foster, noted that the combined total of fund trapped was $600m as at this month.
She said: “If this fund is left unchecked, it could reach $1billion by the end of 2022. Emirates has taken this action to prevent their losses increasing further.
“I think other airlines will wait to see if there is any movement by the Nigerian government first. No one would want to stop a route at one of the busiest times when we are still coming out of fallout of the COVID pandemic. But airlines are run on a commercial basis.
“If the ‘math is not matching’, they will take a view and adapt to the situation they find themselves in. There are other routes that aircraft and personnel could be deployed to, where their funds are not blocked and are available to them for use in a reasonable time frame. If no resolution is found, it is quite likely other airlines will follow the path chosen by Emirates.”
On his part, the Group Managing Director of Finchglow Holdings, Bankole Bernard, stated that this was not the first time foreign airlines were facing the issue of trapped funds.
“This also happened, I think in 2016 when the total trapped fund of the airlines was far higher than whatever we have now – it was about $750m then and they were making a particular comparison because as at that time Venezuela was also going through the same challenges and they owed a lot more, to the extent that Lufthansa had to stop flying to Venezuela.
“Then, some of the things we noticed were reduced capacity, air tickets became more expensive and that is exactly what we are seeing now. But, one critical reason they are more agitated is that in 2016, after their money was held back without being repatriated, Nigeria devalued its currency and as a business person, they felt that if they had taken their money out, they would not have been affected by the devaluation.
“So, that is the fear they are nursing now because if the currency is devalued, it means that they would have lost several per cent of that money they intend to repatriate.
“The only way we can reduce or stop this agitation is that there should be a communiqué from the government, which will give them some assurances that the country is not planning to devalue and this won’t affect them and that they will repatriate their money as it were.”
Stop the subtle blackmail, stakeholder tell Emirates
However, s stakeholder who pleaded anonymity, questioned what he described as blackmail of Emirates in Nigeria over the planned halt of operations into the country.
He said: “Please do not succumb to the blackmail of Emirates and their sponsors from within. The country cannot and will not manufacture dollars for them to repatriate their so called over $80 million in Nigeria.
”When they were competing devilishly to outdo an indigenous carrier, the only airline doing direct flight to Dubai, didn’t they know of the dollar situation here before embarking on having multiple frequencies into Nigeria.?
”They do two flights out of Lagos daily and one out of Abuja daily, bringing the total to three daily flights into Nigeria and 21 flights every week,”
“Once they heard a Nigerian airline was about to start flying to Dubai, they applied to increase the Lagos frequency to three flights daily, just to stifle the airline and dominate the route. They didn’t need all these flights but they increased frequency to stifle competition. Nigerians are even angry at the figures they are publishing; they feel having been ripped off by Emirates.”
Emirates: FG doing everything to resolve crisis, $85m not blocked – FG
Meanwhile, the federal government said yesterday it was working hard to address the imminent stoppage of flight operations into the country by Emirates Airlines.
Special Assistant on Public Affairs to Hadi Sirika, Minister of Aviation, James Odaodu, said there was hope that Sirika’s effort would bring about a quick resolution of the challenges faced by Emirates and other foreign airlines in the shortest possible time.
He said: “It is an unfortunate situation and the minister is greatly concerned, just as he is concerned about the difficulties faced by domestic operators. It is hoped that, with the efforts of the Minister, the issue will be resolved sooner rather than later.”
Odaodu, however, dismissed claims that the revenues generated by the airline were blocked, noting that the challenge with the funds was that of repatriation.
“Who withheld the money? That they are unable to repatriate their funds doesn’t amount to withholding by government. As much as the Minister of Aviation has tried to assist them with relevant bodies to facilitate their access to forex, it should be noted that the issue does not fall among the responsibilities of the Ministry of Aviation,” he added.
“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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