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$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.”
Idiaye, a third-term lawmaker, takes over from Blessing Agbebaku, who resigned as Speaker on Monday amid moves by lawmakers to impeach him.
The emergence of Idiaye was said to have been influenced by the gentleman’s zoning arrangement in the Assembly, which provides that when the governor is from the Edo Central Senatorial District, the Speaker should come from Edo North.
Idiaye, being the oldest member from the Edo North Senatorial District, was subsequently elected Speaker.
Without the zoning arrangement, the Deputy Speaker would have automatically succeeded Agbebaku, according to the new Speaker.
Members of the Assembly were at the Government House to inform Governor Monday Okpebholo of the change in leadership.
Agbebaku was said to have resigned early on Monday following alleged moves by lawmakers to impeach him.
Reports gathered that 17 of the 24 lawmakers had signed a notice of impeachment on Sunday night, a development that may have prompted his resignation.
Agbebaku’s resignation was confirmed by Ebojele, who said details of the development would be made public later.
She said, “I can confirm the Speaker’s resignation but details will be made public later.”
The Speaker of the Edo State House of Assembly, Blessing Agbebaku, has resigned from his position.
Agbebaku stepped down on Monday amid moves by some lawmakers to impeach him.
His resignation was confirmed on Facebook by his media aide, Ivy Adodo-Ebojele, who said further details on the circumstances surrounding his exit would be made public later.
“EDO ASSEMBLY SPEAKER RT HON CHIEF BLESSING AGBEBAKU RESIGNS,” she wrote.
The development has thrown the Edo State House of Assembly into a fresh leadership crisis, with lawmakers expected to determine a new Speaker.
Details shortly…
The Executive Secretary of the Igbo Oriental Think Tank, Dr. Kenneth Anozie, has highlighted the vision of Dr. Chukwuma Anyichuks Odii for Ebonyi State ahead of the 2027 governorship election.
In a statement titled “Anyichuks Odii 2027: I Have a Dream for Ebonyi State,” Anozie compared Odii’s vision for Ebonyi with the transformational ideals associated with American civil rights leader Martin Luther King Jr.
According to the political analyst, Odii believes that Ebonyi State possesses enormous potential capable of benefiting the wider population rather than serving the interests of a few.
Anozie said Odii’s proposed agenda includes a restructuring of government to ensure equitable representation and development across the different zones of Ebonyi State.
He also listed improved infrastructure as a key component of Odii’s vision, particularly roads and other projects that would facilitate the movement of agricultural produce, stimulate industrial development and create employment opportunities for youths.
The analyst further said Odii plans to make the civil service more responsive to the needs of residents, establish major healthcare centres across the state’s local government areas to help reduce child mortality, and provide extensive ICT training for young people.
Anozie said the ICT initiative could position Ebonyi as a hub for technology talent, with trained professionals able to compete for opportunities locally and internationally.
“Anyichuks has a dream. Ndi Ebonyi need to cue in to that dream for the benefits of all,” Anozie said.
He urged Ebonyi residents to pay attention to the proposed agenda and participate actively in determining the direction of the state ahead of the 2027 election.
Dr. Kenneth Anozie is the Executive Secretary of the Igbo Oriental Think Tank and a political analyst.
…Governor trounces APC’s Oyebamiji with 66,252
The Independent National Electoral Commission has declared Governor Ademola Adeleke, of the Accord Party, the winner of the 2026 governorship election.
Announcing the final results, INEC Returning Officer, Prof. Joshua Ogunwole, the Vice- Chancellor of the Federal University, Oye-Ekiti declared Adeleke winner and returned him elected.
Ogunwole announced that the Accord candidate secured 511,067 while his closest challenger, Bola Oyebamiji of the All Progressives Congress, recorded 444,815 votes.
Adeleke trounced his major opponent with 66,252 votes amid wild jubilation by party supporters and other residents.
Details later…
The Osun State Governor and Accord Party candidate, Ademola Adeleke, has won 19 of the 30 Local Government Areas in Saturday’s governorship election, while the candidate of the All Progressives Congress, Bola Oyebamiji, secured victory in 11 LGAs.Download Offline Maps
The results are being collated and announced, with the Independent National Electoral Commission expected to make the official declaration after the completion of the process.
Adeleke recorded notable victories across several parts of the state, including Ede South, Ede North, Osogbo, Ife Central, Ife East, Ife North, Ilesa West, Odo Otin, Egbedore and Iwo.
Oyebamiji, however, won key LGAs including Ilesa East, Boripe, Irepodun, Obokun, Atakumosa West, Atakumosa East, Irewole, Isokan, Ola-Oluwa, Ife South and Olorunda.
The results announced so far show a closely contested election between the two major candidates, with the other candidates recording significantly lower figures in most of the LGAs.Download Interactive Maps
In Boluwaduro, Adeleke polled 7,118 votes against Oyebamiji’s 7,050. In Ede South, Adeleke secured 26,188 votes while the APC candidate scored 6,219.
Adeleke also won Ife North with 13,879 votes to Oyebamiji’s 9,613; Ilesa West with 16,196 against 12,756; Ifedayo with 7,427 against 6,836; and Ife Central with 21,171 against 15,913.
In Osogbo, Adeleke recorded 36,480 votes while Oyebamiji polled 30,474. He also won Oriade with 21,343 votes to 14,863 and Odo Otin with 18,003 votes against 15,435.
Other LGAs won by Adeleke included Ife East, where he scored 27,201 votes against Oyebamiji’s 18,600; Ifelodun, 21,107 against 18,396; Iwo, 27,085 against 19,660; Ede North, 35,427 against 10,283; Ila, 16,211 against 12,934; Ayedire, 11,073 against 9,910; Egbedore, 19,278 against 11,194; and Ayedaade, 16,681 against 15,719.Design Campaign Signs
Oyebamiji secured victories in Ilesa East with 16,208 votes against Adeleke’s 12,280; Boripe with 19,963 against 12,448; Irepodun with 15,713 against 14,504; and Obokun with 16,120 against 12,023.
He also won Atakumosa West, polling 10,037 votes to Adeleke’s 7,479; Irewole, 29,972 against 10,934; Atakumosa East, 9,936 against 7,872; Isokan, 14,063 against 13,765; Ola-Oluwa, 10,782 against 10,063; Ife South, 14,678 against 13,507; and Olorunda, 24,671 against 23,514.
The outcome places Adeleke ahead in the overall LGA tally, although the final result remains subject to the completion of the official collation and declaration by INEC.
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