Category: Issues

  • Airlines, regulators in the eye of the storm

    Airlines, regulators in the eye of the storm

    The National Assembly Joint Committee on Aviation may soon beam its searchlight on carriers allegedly violating the rights of air travellers by incessant delays and cancellation of flights. But the Committee’s inquest may be met with stiff opposition by the Airline Operators of Nigeria (AON), the umbrella body of indigenous carriers. AON members have never stopped challenging aeronautical authorities to address some of the reasons for the alleged infractions. KELVIN OSA OKUNBOR reports

    The air transport industry is in near turmoil, forced by accusations and counter accusations over infringements on the rights of air travellers.The crux of the matter, The Nation learnt, is the increasing outcry over the alleged violation of air travellers’ rights by carriers who delay and cancel flights.

    Already, the National Assembly Joint Committee on Aviation have waded into the matter, with plans to expose culpable carriers.

    However, the Committee’s move,  it was learnt, might not go without a fight, literarily, by Airline Operators of Nigeria (AON), the umbrella body of indigenous carriers. This is because members of the AON had since been challenging the aeronautical authorities to address some of the factors that may have been contributing to the alleged infractions, namely: incessant delays and cancellation of flights by domestic carriers.

    Apart from members of the AON (i.e. indigenous carriers), others that may be drawn into the ‘fight’ when the committee’s inquest gains momentum include the aviation industry regulator, Nigerian Civil Aviation Authority (NCAA), accused of failing in its duties  go rein in the domestic carriers; the Federal Airports Authority of Nigeria (FAAN), and the Nigerian Airspace Management Agency (NAMA).

    They may be forced by the Committee to explain their complexity, if any, in the alleged infractions, which have seen airlines recording 41, 398 cases of delayed flights, from January to December, last year, for instance, according to data from the NCAA.The grouse of the committee and indeed, air travellers and other  stakeholders is that this trend, if unchecked, will negatively impact air transportation.

    What promises to be a showdown among the committee, domestic operators and some agencies in the industry,  came to the fore when, a about fortnight ago, the Chairman, Senate Committee on Aviation, Smart Adeyemi, threatened to blacklist indigenous carriers that have made it a habit to keep passengers at the airports for hours without offering clarifications on the status of their flight.

    Senator Adeyemi said the National Assembly has been inundated with complaints from Nigerians on the shabby treatment they have been receiving from carriers.The erring airlines, he said, have been keeping passengers at the departure halls for hours without explanations on why their aircraft would not be airborne.

    Describing the development as “poor customer service,” Adeyemi said many Nigerians have lost business opportunities and applicants interviews because of the aberrant schedules by airlines. He said the situation had become worrisome to warrant the intervention of the National Assembly, because NCAA has failed to discharge its oversight duties.

    Adeyemi said: “I am calling on airline operators as people can no longer predict their flights. Nigerians want to fly and the roads are bad, but there are people that stay as long as five to eight hours waiting for a flight with no compensation, not even a bottle of coke.

    “We will have a meeting with airlines. We will try to look at the cause of this. We will tell them our feelings and there must be compensation for passengers that are stranded.”

    He said instead of experiencing four to five hours’delay at airports, Nigerians may consider travelling by road. His words: “Nigerians are not happy with the way airlines operate in this country. Nigerians are at the mercy of the airline operators.

    “You cannot predict your movement. People stay at the airports for five to six hours. If Nigerian airline operators cannot manage their fleet, it will not be out of place for us to ask foreign companies that are interested to run domestic operations.

    “Today, you cannot predict your movement travelling with Nigerian airlines. At times, if not for the security challenges you would take your car and move. Somebody is staying at airports for five to six hours and nobody is talking to you.”

    According to Adeyemi, the NCAA must rise to the occasion.

    “I wouldn’t know the committee that the NCAA has set up but, as a parliament, we are going to handle this challenge differently.

    “We are going to set up our own monitoring system and we are going to announce to Nigerians the airlines that are not worthy to fly because they are not reliable. If there is only one airline that is doing well, we will announce it to Nigerians,” he said.

    The Senate Committee Chairman on Aviation stated that the essence of flying is to meet appointments and help to accelerate socio-economic development activities.

    He, therefore, said if domestic airlines can no longer perform their roles and meet their obligations to passengers, “we will ask them to pack up. If there are no airlines operating in Nigeria, we will call for foreign airlines to come and operate in Nigeria”.

    As Adeyemi pointed out, “It has reached that point. We must take up the challenge; we will do our best; we will set up our own team, monitor them week by week and give the statistics of airlines that have failed to meet their schedule.”

    His counterpart at the House of Representatives Committee on Aviation,  Nnolim Nnaji, also berated the NCAA for its failure to address the matter. He said: “The issue of flight delays and cancellations, we cannot take it anymore.

    “Most times, when you ask the airlines, they cite operational reasons. I discussed it with the Director-General of the NCAA. I wrote to the authority on this issue and up till now, nothing fruitful has come out of the complaint. We are going to discuss this issue. It’s affecting the entire country.”

    NCAA’s position

    However, the NCAA has explained its position in the matter. Its Director-General, Captain Musa Nuhu, said the regulator had set a committee to look into the matter, assuring that any airline found culpable would be severely sanctioned.

    AON reacts, gives reasons for infractions

    But, local operators have accused the National Assembly Joint Committee on Aviation of interloping into the functions of the NCAA.

    In a statement, the AON urged high-profile and respected public office holders to seek information before dabbling into matters where they do not have competence.

    The statement was signed by Alhaji Yunusa Sarina Abdulmunaf of AZMAN Air; Allen Onyema, Air Peace; Alhaji Shehu Wada, Max Air;  Dr. Obiora Okonkwo, United Nigeria Airlines; Capt. Mfon Udom, Ibom Air; Capt. Roy Ilegbodu, Arik Air; and Capt. Abdullahi Mahmood, Aero Contractors.

    Others were Capt. Edward Boyo, Overland Airways; Mr. Afolabi Babawande, Green Africa Airways and Mr. Sukh Mann, Dana Air. The operators said the National Assembly Joint Committee on Aviation requires insight in articulating solutions to the challenges plaguing the domestic air transport system.

    The embattled airlines argued that whether in Nigeria or other countries, delaying or cancelling any flight has severe financial and image consequences for the operator. They affirmed that flight delays and cancellations occur all over the world.

    They, however, pointed out that 80 per cent of the factors responsible for the ugly development in Nigeria are neither in the control of airlines nor caused by them.

    The statement read: “Due to the lack of basic navigational and visual aids at most airports across the country, airlines are forced to delay flights unnecessarily, waiting for visibility to improve either at departure or destination airports.

    “This is the major cause of delays in October to March every year, with the harmattan dust haze and fog. This impacts the entire system significantly. Almost every morning, the first flights to several destinations are delayed, affecting the schedule of the airline for the rest of the day.

    The issue of lack of navigational and visual aids at most of the airports is said to account for more than 50 per cent of the delays in the system, for which airlines unfairly always take the fall.

    Also, inadequate aircraft parking space due to congested aprons – both domestic terminals in Lagos popularly known as GAT and MMA2, which are the main hubs and turnaround points for the majority of the local industry – are severely capacity-constrained to the point of constituting a safety hazard to the industry.

    Unfortunately, lack of planning by the concerned authorities over the years also led to deficit in air side infrastructure at the terminals, causing aircraft to park in a chaotic manner, where many aircraft get hemmed in by other aircraft.

    The AON also cited restrictions caused by sunset airports as part of the reasons why flights are either cancelled or delayed.

    “Again, because of a deficit in navigational and visual aids, most of the airports in Nigeria are open between 6am and 6pm. Once an airline misses this window as a result of one or more of the afore-mentioned delays, airlines are forced to cancel scheduled flights to such destinations.

    “The practice of closing the airspace for security reasons to allow the President, Vice President or other VIPs to either depart or arrive, is a significant causal factor of unpredictable and unforeseeable delays in the system. This is no fault of airlines, yet another delay cause for which the domestic airlines take the fall for the entire system on a daily basis,” AON said.

    It also pointed out that bird strikes and foreign objects damage many aircraft during landing, taxiing or take-off at airports across the country, thereby forcing the aircraft to be parked abruptly until a replacement can be marshaled to operate a flight.

    The AON, noting that a lot can be done about this by the authorities, however, lamented that the airlines, again, bear the brunt of the failure to address this key issue.

    “JetA1 costs above N410 per litre in Lagos, N422 in Abuja and Port Harcourt, and N429 in Kano, and has continued to rise fast and steadily. Fuel supply is at best epileptic at several airports thereby causing delays,” the AON said.

    It added: “Airlines carry out most of their activities in dollars which sells for between N580 and N600 per dollar and is in short supply. Nigeria’s domestic airlines are in a ‘life and death’ struggle to secure the foreign exchange (forex) they need to acquire spare parts to maintain their aircraft.

    “This is a major influence on how quickly a grounded aircraft can be fixed and restored to its flight schedule, which in turn has a huge impact on the schedule reliability of the domestic airlines. Many airlines cannot clear their aircraft spare parts for weeks or months due to Customs bottlenecks.”

    Operators lamented that sometimes, they are forced to wait on the ground in a queue for long periods before being given clearance for take-off., and this goes a long way to affect its arrival and next departure time.

    “Sometimes, airlines are forced to taxi for long periods due to unavailability of runway lights on a particular runway. This further extends the operational time between flights,” they said.

    The Chairman, West-Link Airline, Captain Ibrahim Mshelia, said: “Talking will not change anything, but appropriate action will. There are many factors that could lead to the infractions, including an operating aircraft developing a fault that cannot be fixed before boarding.‘’

    “Adverse weather such as harmattan, fog or rains are some of the factors that affect Nigerian airports. Service providers’ delays, including catering, handling companies delay in baggage processing, delay by fullers and airport security screening of baggage and passengers are also issues.”

    However, in the midst of their woes, the AON has condemned violent attacks on airline staff and facilities at the various airports by passengers over flight delays or cancellation.

    The operators expressed concern that such violent attacks have gone on unrestrained across major airports in the country. They, therefore, called for “strongly, and without equivocation, immediate cessation.”

    Whether the anilines’ litany of woes will force the hand of the National Assembly Joint Committee on Aviation to halt their inquest into the barrage of delays and cancellation of flights across the country, or dilute the growing anger and disappointment of air travellers in remains to be seen.

  • Building sustainable cassava seed system to boost productivity

    Building sustainable cassava seed system to boost productivity

    At 10 tonnes per hectare average cassava yield, compared with Asian countries’more than 20 tonnes per hectare, Nigeria’s cassava average yield is still considered low. However, Nigeria’s seed industry may have entered a new chapter that promises a robust domestic cassava seed sector. Specifically, stakeholders in the agric sector have moved to address the situation through support for improved cassava varieties. They hope that this will, ultimately, help farmers deliver increased cassava yields and boost profitability. DANIEL ESSIET reports.

    Nigeria’s seed industry appears set for a major turnaround that will significantly impact productivity in the agric sector.

    Apparently worried that quality seed availability to farmers remained one of the top challenges to increased productivity and profitability, and determined to change the narrative, stakeholders in the agric sector have turned their attention to addressing the situation through support for improved seed varieties, starting with cassava.

    Their choice of cassava to kick-start what promises to add immense value to the nation’s seed industry is understandable. For one, cassava is a main staple crop in sub-Saharan Africa, including Nigeria. It offers the cheapest source of calories and is an important cash crop for rural households.

    Unfortunately, however, Nigeria’s cassava average yield remained at 10 tonnes per hectare, compared with Asia countries, for instance, that have achieved yields of more than 20 tonnes per hectare.

    Perhaps, to underscore the crisis in Nigeria’s seed industry, particularly for cassava, the demand for improved disease-free cassava stems was between N6 billion and N10 billion in 2020. This was after the Central Bank of Nigeria (CBN) okayed the use of improved stems.

    The apex bank’s-midwifed programme on cassava created a huge demand following its initiative to develop cassava seed growers on 100, 000 hectares across the country. This created a huge demand for improved and disease-free planting materials that surpassed supply.

    To turn the cassava seed sector of the seed industry around, Sahel Consulting is leading the Processor-Led Model (PLM) component of the BASICS-II project focused on the development of a processor-associated seed system.

    The goal of the PLM is to demonstrate that processors can produce planting material that features profit-maximising processing characteristics for their farms and out-growers in an economically sustainable and replicable manner.

    The Project Manager, BASICS-II, Prof. Lateef Sanni, said the goal of the project was to provide farmers with access to affordable, quality-assured seeds of the cassava varieties in demand by local food and processor markets through the establishment of a commercially viable seed value chain operating across breeder, foundation, and commercial seed levels.

    Using the BASICS model, researchers screened and selected the commercial seed entrepreneurs and linked them to IITA GoSeed—an early generation seed company at the institute—for the procurement of healthy cassava seeds of improved varieties.

    According to Sanni, the project will enable more efficient dissemination and adoption of new varieties to improve productivity, raise incomes of cassava growers and seed entrepreneurs, enhance gender equity, and contribute to inclusive agricultural transformation.

    Sanni, who is also Head, International Institute of Tropical Agriculture (IITA) station in Abuja, added that the project assists farmers and organisations to become successful seed ventures. He said everyone have to work together to ensure that Nigeria develops a virus-free planting materials in order to stabilise food and job security in the cassava value chain.

    Last year, Sahel Consulting organised a virtual Cassava Seed Business Summit in collaboration with other partners of the Phase II (BASICS-II) project. More than 92 cassava seed sector stakeholders participated at the summit with the theme, “The critical roles of stakeholders in promoting access to quality cassava stems”.

    And a key objective of the summit was to provide a platform for key actors in the cassava seed sector to collaborate and share innovative models and solutions that will foster the emergence of an economically viable and sustainable formal cassava seed system.

    It was also aimed at encouraging private sector actors to harness the opportunities in the emerging formal seed system for cassava in Nigeria.

    At the summit, Partner at Sahel Consulting, Temitope Adegoroye, highlighted the challenges facing the cassava seed system, including the low yield of smallholder farmers in Nigeria despite the country accounting for  20 per cent of global cassava production.

    According to him, opportunities abound in the cassava seed system sub-sector that would catalyse Nigeria’s agricultural transformation. However, these opportunities, he said, have not been fully tapped for job creation, income generation, and food security.

    Adegoroye further stated that the need for effective collaboration among cassava stakeholders to maximise the potential in the value chain gave birth to the first Cassava Seed Business Summit. According to him, the summit was envisioned to be a long-standing platform in the cassava seed sector.

    A Director, National Root Crops Research Institute (NRCRI), Dr. Joseph Onyeka, expressed delight at the emergence of the summit, which, according to him, came at a crucial time. He stated that the summit would assist in mobilising capital and human resources to ensure timely, adequate, and profitable interventions in the cassava value chain.

    Following the first round of presentations, a panel session tagged “Backward integration focusing on cassava seed multiplication – The perspectives of industrial processors” provided an expose on the experiences and challenges of industrial processors.

    Moderated by a manager at Sahel Consulting, Chinedu Agbara, the panel comprised cassava processing industry leaders and experts namely, Chief Executive Officer (CEO) of Psaltry International Limited, Mrs. Yemisi Iranloye; Executive Director of Eagleson & Nito Concepts Limited and General Manager of Premium Cassava Products Limited (PCPL), Mrs. Nike Tinubu.

    Other panelists included the Executive Director of ATMANcorp Nigeria Limited, Mr. Seyi Oyenuga, and Managing Director of Crest Agro Products Limited, Mr. Tunde Solaja.

    A major takeaway from the session was the fact that low supply of quality cassava stems accounted for the decline in the operating capacity of processors’ factories.

    As a result of the supply gap and low starch content of available cassava stems, the cost of cassava stems represents a significant portion of the processing cost, and in some cases during the dry season, it outweighs the selling price of cassava products.

    In addition, the panelists affirmed that the Semi-Autotrophic Hydroponics (SAH) technology, which they are operating through a partnership with the BASICS-II project, was a valuable investment, as it enabled them to produce improved varieties of cassava stems at a greater multiplication rate and in a shorter period.

    The processors called for an integration of input and service providers into the BASICS-II chain of operation as well as a higher performance by research institutes in introducing new high-quality cassava varieties.

    Also, experts from IITA, National Agricultural Seed Council (NASC) and NRCRI and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) have been working towards establishing a sustainable cassava seed system with the goals to increase food security and incomes for farmers.

    Basically, they work with partners to transform the cassava sector by improving smallholder livelihoods, and by offering the market an assured supply of sustainably produced cassava.

    The work, The Nation learnt, involved testing, evaluating and up-scaling end-user-preferred varieties with strong resistance to Brown Streak Disease (CBSD) and Mosaic Diseases (CMD) through various Cassava Agribusiness Seed Systems (CASS) models.

    Two viral diseases CBSD and CMD are said to be responsible for low yield and low-quality planting materials. They are being perpetuated by the use of virus-infected cuttings.

    But the GIZ-funded Cassava & Maize Value Chain Project was said to have established 60 cassava commercial seed entrepreneurs in Ogun and Oyo states as part of efforts to revamp the seeds system and create jobs in local communities.

    The project, which is under the Green Innovation Centres of GIZ, was created in response to the economic fragility due to COVID-19 pandemic which hurt the seeds system of several crops, including cassava; and the livelihoods of millions of farmers, especially women and youth that depend on the root crop.

    “We are glad that the project is establishing a sustainable seed system for cassava in these key states (Oyo and Ogun), serving as a model to other states,” IITA Project Leader of the Cassava & Maize Value Chain Project, Dr. Godwin Atser,  said.

    According to Atser, cassava plays a central role in the food supply of many African countries, including Nigeria, stressing that yields must increase significantly to meet expended demand and ensure food security.

    “This need will not be met if farmers continue to plant diseased materials of old varieties that were not bred for the changing environment. Farmers need reliable access to planting materials in a pipeline of new, improved, climate-smart varieties to increase yields, food security, resilience and supply emerging enterprises in cassava processing,” he said.

    Atser explained that IITA’s new sustainable cassava system model, called BASICS offers an opportunity to achieve this goal. He stated that the goal was to create a sustainable seed system that connects the value chain from growing breeder and foundation seeds to commercial seed production, incorporating genetic purity and quality assurance for health and varietal purity.

  • AfCFTA: Is Nigeria ready to seize the opportunities?

    AfCFTA: Is Nigeria ready to seize the opportunities?

    Trading under the African Continental Free Trade Area (AfCFTA) kicked off on January 1, last year. One year after, how has Nigeria prepared and strategically positioned its private sector to grab the opportunities offered by the trade liberalisation deal? What are the recent developments within and outside Nigeria that may have indicated its readiness to live to its billing as biggest potential beneficiary of the new economic bloc that seeks to unlock a market of 1.2 billion Africans with a combined Gross Domestic Product (GDP) of $3 trillion? Assistant Editor CHIKODI OKEREOCHA reviews Nigeria’s participation in the AfCFTA one year after.

    Even before President Muhammadu Buhari signed the landmark African Continental Free Trade Area (AfCFTA) Agreement on July 7, 2019, after 16 months of foot-dragging, experts in international trade and diplomacy had tipped Nigeria as the biggest potential beneficiary of the trade liberalisation deal. This was on the strength of Nigeria’s nearly 200 million population and huge market for trade.

    Indeed, Nigeria, as the single largest market in Africa, is said to stand the chance of gaining a lot from increasing access to its goods and services to a wider African market. Also, the opportunity of up-scaling her manufacturing sector and possibly, taking over from China as the global manufacturing hub is another potential benefit too glaring to ignore under the AfCFTA.

    The AfCFTA was adopted by the 18th Ordinary Session of the Assembly of Heads of State and Government of the African Union (AU) in Addis Ababa, Ethiopia, in January 2012. It seeks to create the world’s largest free trade area; one that integrates 1.3 billion people across 54 African countries, with the objective of tapping into a combined Gross Domestic Product (GDP) of over $3 trillion.

    Seen as an opportunity to remake African economies, the AfCFTA, fundamentally, will put African economies-and African citizens-on a better economic footing. It will enhance competitiveness and stimulate investment, innovation, and economic growth by increasing efficiency and eliminating barriers to trade.

    The agreement commits countries to removing tariffs on 90 per cent of goods and incrementally apply the same to services. And the removal of tariffs on goods in particular is projected to increase the value of intra-African trade by 15 to 25 per cent by 2040. This would translate to between $50 billion and $70 billion in value.

    The operational phase of the continental trade deal was earlier scheduled to start officially on July 1, 2020, but was delayed by six months due to the outbreak of the COVID-19 pandemic and its restrictive measures, which came at a time the AfCFTA was in its critical phase of implementation.

     

    Factors against intra-African trade

    Containment measures such as border closure, travel bans, and in some cases, total or partial lockdowns, enforced by most African countries, including Nigeria, to curb the spread of the deadly virus directly impacted on economic integration and intra-African trade, which are at the core of the free trade deal.

    Accordingly, commercial trading under the AfCFTA commenced on January 1, 2021. One year down the line, how has Nigeria fared? Is Africa’s most populous and largest market on course in maximising the opportunities promised by the AfCFTA?

    The agreement, admittedly, potentially cleared the coast for Nigeria’s competitiveness in continental and international trade while vigorously driving her economic diversification and industrialisation agenda. But how has the private sector strategically positioned itself to seize the opportunities promised by the AfCFTA?

    These questions have become imperative particularly considering the initial doubts, controversies and uncertainties over whether or not Nigeria should sign the treaty. This was why, for instance, it took Nigeria’s president 16 months of foot-dragging to sign the document, during which the Federal Government said it needed to consider the deal and country-wide sensitisation and consultation of stakeholders.

    The delay in signing the deal came after members of the Organised Private Sector (OPS), particularly manufacturers, opposed the move. They had warned the Federal Government not to sign the policy document as doing so, according to them, would cripple the economy and leave more Nigerians unemployed.

    Many of them expressed fears that the deal will be injurious to the nation’s industrial sector and the economy. They argued, for instance, that the agreement would turn Nigeria into a dumping ground for imported foreign goods. They insisted that the likely negative impacts of the AfCFTA on private businesses and the economy far outweigh its supposed benefits.

     

    Stakeholders react

    However, proponents of the free trade deal had kicked their heels in, insisting that AfCFTA – the world’s largest free trade area since the creation of the World Trade Organisation (WTO) in 1994 – will boost intra-African trade by about 60 per cent by 2022.

    Currently, intra-African trade is abysmally low, standing at just 16 per cent of the continent’s total trade, compared with 19 per cent in Latin America, 51 per cent in Asia, 54 per cent in North America and 70 per cent in Europe.

    However, one year into the implementation of the AfCFTA, the initial feeling of uncertainty and dilly-dallying concerning Nigeria joining the new economic bloc, The Nation learnt, appear to have given way to optimism that Nigeria will eventually rise to the occasion and lead the charge to remake her economy and by extension, the African economies by leveraging the AfCFTA.

    For instance, renowned diplomat and Director-General of National Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Ambassador Ayo Olukanni, expressed optimism that given Nigeria’s readiness and preparedness, the country can effectively compete under the AfCFTA as some of her manufacturers have shown.

    “Some Nigerian banks are also gradually making inroads and in fact, being invited to commence operations in some African countries,” Olukanni told The Nation, pointing out, however, that continuous preparations are the key strategic options now in readiness when the momentum and condition for trading increase.

    The Second Deputy President of NACCIMA, Jani Ibrahim, also shares in Olukanni’s optimism. “We have the capacity, we have the people, we have the products, and if you notice, a lot of Nigerian products are beginning to find their way in other African countries,” he said.

    Apparently encouraged by the aggressive sensitisation of private sector operators across the country in collaboration with the public sector, Ibrahim told The Nation that Nigeria is so prepared for trading to the extent that other state parties to the trade deal are beginning to get worried about what Nigeria can do.

    “Our members are being sensitised.We are working with the National Action Committee on AfCFTA, and NACCIMA is a frontline member of that committee. Sensitisation programmes are being carried out across the country with the Committee.

    “NACCIMA is also closely working with the Nigerian Export Promotions Council (NEPC) to develop our members for export so that our products will meet international standards; so that when their products go out of the country, they will be accepted,” Ibrahim said

    The NACCIMA boss added that one major thing that Nigeria has been able to achieve, working with other African countries and relevant institutions, in one year of trading under the AfCFTA, was the recent launch of the Pan-African Payment and Settlement System (PAPSS) about a fortnight, to help resolve the major issue of dollarisation and dollar availability among African countries.

    Enters PAPSS

    “The African Export-Import Bank (Afreximbank), working with the AfCFTA and the Central Bank of Nigeria (CBN) to come up with the PAPSS where if you, as a Nigerian exporter, sends goods to Ghana, you will be paid locally in Naira; the other person does not need to go and be looking for dollar to pay you. In the same way, a company will not go and be looking for Dollar in order to carry out a transaction,” he explained.

    Launched in January, this year, in Accra, Ghana, PAPSS, which was developed by Afreximbank, is expected to boost intra-African trade by transforming and facilitating payment, clearing and settlement for cross-border trade across Africa. PAPSS will enable a customer in one African country to pay in his own currency, while a seller in another country receives payment also in his own currency.

    At the unveiling of the payment platform, AfCFTA Secretary-General Wamkele Mene stated that the PAPSS is expected to boost intra-African trade and save the continent $5 billion yearly in payment transaction costs, while also playing an increasingly significant role in accelerating the continent’s transactions underpinning the operationalisation of the AfCFTA.

    AFREXIMBANK’S chief speaks

    The President and Chairman, AFREXIMBANK, Prof. Benedict Oramah, said: “We are eager to build upon the AfCFTA’s creation of a single market throughout Africa, and PAPSS provides the state-of-the-art financial market infrastructure connecting African markets to one another thereby enabling instant cross-border payments in respective local African currencies for cross-border trade.”

    The Nation learnt that Afreximbank, as the main Settlement Agent for PAPSS, will provide settlement guarantees on the payment system and overdraft facilities to all settlement agents, in partnership with Africa’s participating Central Banks.

    According to Oramah, “PAPSS will effectively eliminate Africa’s financial borders, formalise and integrate Africa’s payment systems, and play a major role in facilitating and accelerating the huge AfCFTA-induced growth curve in intra-African trade.”

    According to the Pan-African multilateral financial institution, PAPSS provides the solution to the disconnected and fragmented nature of payment and settlement systems that have long impeded intra-African trade.

    Indeed, before PAPSS, over 80 per cent of African cross-border payment transactions originating from African banks were said to be routed offshore for clearing and settlement using international banking relationships.

    Expectedly, that posed multiple challenges, ranging from payment delays to operational inefficiencies and compliance concerns for the disparate regional payment systems.

    Ibrahim said NACCIMA was working with the Economic Community of West African States (ECOWAS) Region, and once the region stabilises, others would also come on board.  He said this would apply to Phase I of the AfCFTA, which is trade in goods.

    “We are discussing and negotiating on the Phase Two, which is services, intellectual property, investments etc and also in terms of conflict resolutions,” Ibrahim said, underscoring Nigeria’s readiness to play a leading role in the unfolding effort to leverage the AfCFTA to force Africa’s economic rebirth.

    Noting that the private sector in Nigeria has always been worried about being a dumping ground for goods from other countries, he, however, said the Rules of Origin (RoO) were being marshalled thoroughly and that the National Office for Trade Negotiations (NOTN) and the National Action Committee were working very hard to see that they establish the RoO such that no country could dump any goods on another country.

    MAN’s Position

    This must be reason the Director-General of Manufacturers Association of Nigeria (MAN), Mr. Segun Ajayi-Kadir, harped on the need to constitute the National Rules of Origin Administration Board that will superintend the implementation of RoO and also validate the process (application and registration) of issuing the Certificate of Origin.

    RoO is key for trade in goods. They are used to determine the country of origin of a product for the purpose of international trade. And even before Nigeria signed on to the treaty, RoO was a subject of intense agitation by members of the OPS, especially manufacturers, who had expressed fears that the RoO in the AfCFTA cannot be adequately enforced to guard against the influx of goods into the Nigerian market.

    Their argument was that RoO might not be adequately enforced because goods from the European Union (EU) might find their way into one of the African countries that have bilateral agreement with the EU, and when such goods get into any of the African countries, they could repackage them, change the label from made in Europe to that of the African country.

    That way, manufacturers believe that those same goods will surely find their way to Nigeria, which is the main target market for the EU. But, with Ibrahim’s assurances, such fears are gradually being dispelled to pave way for Nigeria to fully take its pride of place in the new continental free trade regime.

  • The blame game over  toxic petrol import continues

    The blame game over toxic petrol import continues

    The controversy rages on over the importation of toxic petrol. In what has suddenly turned into blame game, a revelation of past atrocities committed by the supplier, Litasco, exposes the level of due diligence that the sole importer of petrol conducts on its suppliers and vendors. As authorities and stakeholders are trying to get to the root of this crisis, it has been a blame trading episode across board. But what really are the issues? MUYIWA LUCAS asks.

    ONE week after, the country has continued to groan from the effects of the “Off Spec” premium motor spirit (PMS) or petrol that found its way into the market. However, the controversy has continued to trail the entire saga, with accusations and counter accusations enveloping the air.

    The more the Nigerian National Petroleum Company (NNPC) Limited tries to exonerate itself from the scandal, the more it keeps sinking deeper. For instance, it took an advertorial in national newspapers by MRS, a major oil marketer, before the NNPC could offer any tangible explanation, and in the process, exposing other culprits involved.

    For instance, the “Off Spec” fuel was shipped into the country from Antwerp, Belgium, by Litasco, a Geneva, Switzerland-based oil firm. A quick check on Litasco’s website paints an impressive image of this Geneva-based firm with over 450 workforce.

    Litasco, a firm founded in 2000 in Switzerland, is the exclusive international marketing and trading company of Lukoil Oil Company, a Russian firm. Litasco describes itself as one of the world’s major traders of crude oil and refined petroleum products.

    However, beyond these glorifying eulogies of this Swiss commodities trader, a deeper check unearths the “dirty” side of the firm. The company may not be new to sending substandard petroleum products to West Africa, if a report of the Dutch entitled: “Human Environment and Transport Inspectorate” (ILT) is anything to go by. This is because a 2016 report indicted Litasco as one of the European companies that “deliberately and systematically” use toxic blend stocks in mixing fuels.

    ILT, according to a report dated July 10, 2018, presented a report to parliament about the composition and hazardousness of fuels exported to West Africa from Amsterdam and Rotterdam. The investigation highlighted the decisive role played by commodities trading firms that maximise profits by taking advantage of lax West African fuel standards. In contrast to Holland, neither the Swiss firms named in the report – Vitol, Gunvor and Litasco –  nor the Swiss authorities recognise their responsibility for this scandal that harms the health of millions of people.

    Stakeholders said if this report is anything to go by, then it raised further questions on the extent of due diligence done by business owners or even the NNPC in their choice of partners for engagements.

    The report, entitled: Dirty Diesel: Dutch Environment Inspectors Confirm Dodgy Business of Swiss Commodities Traders, was published on July 10, 2018.

    In September 2016, Public Eye’s Dirty Diesel investigation uncovered the business model of sending low-quality and harmful fuels to Africa. The Dutch government was forced to promise the legislature a report in which the environment inspectors confirmed the role played by Swiss commodities trading firms: Vitol, Gunvor, Litasco as well as other companies, deliberately and systematically use toxic “blend stocks” in the mixing of fuels.

    Starting in 2017, ILT researched the loading of 44 tankers destined for West Africa. It found diesel with 300 times more sulfur and twice as many cancer-causing hydrocarbons as are allowed in Europe. Gasoline contained elements high in sulfur as well as cancer-causing substances like manganese, in concentrations up to 30 times over the European limit. The report concluded that the concerned companies either ignored or were unaware of the European regulation for chemical substances (REACH) and the Dutch law. The environment inspector also investigated fuel oil for sea-going vessels and found products from two commodities trading firms that are categorised as illegal waste.

    These results show that West African countries like Nigeria, where the implementation of stricter gasoline standards has been blocked for months, must urgently enact the standards, to protect their people from such toxic cocktails. The United Nations Environment Director Erik Solheim, in his response to the report, called out the corporations profiting from this political indecisiveness: “Substandard products should not be sold even if they meet national standards,” he said.

    With this investigation, the Netherlands has taken responsibility as a location for the production and export of hazardous fuels. A further investigation is in progress to determine if “Dirty Diesel” companies are violating the OECD guidelines for multinational corporations.

    Meanwhile, in Switzerland, where the concerned corporations have their headquarters, there has so far been no political response to the scandal, not to mention an investigation. This inaction by the authorities on a flagrant violation of the right to health of people in Africa is another example why the Swiss Responsible Business Initiative is necessary.

    The spirited efforts of the NNPC to absolve itself of complacency in the importation saga also seems not to be holding waters given that some firms fingered by the company in the deal have come out with proof to absolve themselves of any involvement in the importation of the 50, 000 metric tons or 100 million litres of petrol.

    NNPC, for some years, has being the sole importer of PMS. This, the company, does by awarding contracts to its vendors for the shipment of the commodity. The vendors in turn, depending on their partnership with several oil merchants, subcontracts them for shipment of the commodity into the country.But for those with a discerning and critical mind, the question is: at what point was there a slip in the supply chain for this product to get into the market?

     This is because a look at the importation process of fuel shows that for every country, there are specifications for their PMS requirements. Usually, before a fuel laden vessel leaves its port of embarkation, tests are carried out on the contents to be sure it meets the correct specification. Further tests are carried out on the high sea on the content and upon the arrival of the consignment in Atlas Cove jetty- which is off the coast of Lagos, the Nigerian Midstream Downstream Petroleum Regulatory Authority (NMDPRA) moves in to the vessel to test the conformity of the product with the Nigerian standard before it is released into the market. The highest methanol level for Nigeria is just about two per cent. The controversial fuel has a 20 per cent methanol level. Once the product meets the required standard, it is then sent to the depots for onward discharge to marketers through the various means of transportation available, including through the pipelines.

    But the question on stakeholders’ mind is: At what point could the product have been contaminated? For some, what happened might not have been contamination of the product in the real sense of it. This is because the vendor contracted to import the fuel already knows the standard requirement of the country. Therefore, bringing in something contrary from means it is an “off Spec”.

    Yet, others believe that there could have been a compromise in the supply chain. Reason: Inspectors from the NMDPRA are expected to check the quality of the fuel upon landing at Atlas Cove before it is released into the various markets.

    Insiders in the oil sector posit the following as specifications for standard petrol for the market:

    • The erstwhile DPR (now NMDPRA) and SON specifications state that petrol must be clear and bright; whereas the appearance of the controversial petrol was clearly hazy;
    • SON/NMDPRA specifications states clearly that petrol range must be between 0.7200and 0.7800g/ml; whereas the imported product has a density of 0.7865g/ml;
    • SON/NMDPRA specification for petrol’s Full Boiling point (FBP) is 210 degC; whereas that of the controversial fuel 211 degC;
    • The imported petrol’s solvent washed Gum content is 6.5mg/100ml; whereas SON specifies parameters of 4.0mg/100ml;
    • The controversial petrol oxidation stability is 329 minutes, compared to the SON/NMDPRA specification of minimum 360 minutes levels.

    Another question is: Why did the NNPC  appoint few petroleum products marketing companies (some of them portfolio companies) to import petrol leaving out other more competent marketing firms?

    Also, why did the NNPC cancel the PMS import intervention scheme that involved the NNPC, CBN, prequalified petroleum marketers and independent auditors, which a former NNPC GMD put in place? This process was adjudged to have been very transparent.

    Going by the sample of the fuel as seen in a viral video, it is evident that the fuel could not have met the parameters for the market.

    A reliable source in the Standards Organisation of Nigeria (SON) said since the organisation has been chased out of the ports, all sorts of substandard products enter into the country. And until an investigation is done, there will remain more questions than answers.

    Providing a graphic chronicle of the unfortunate incident, the NNPC CEO, Mallam Mele Kyari, said on January 20, 2022, that the company received a report from its quality inspector on the presence of emulsion particles in PMS cargoes shipped to Nigeria from Antwerp-Belgium. He explained that NNPC investigation revealed the presence of methanol in four PMS cargoes imported by the following Direct-Sale-Direct-Purchase (DSDP) suppliers as listed in the table below.

    He noted that cargoes quality certificates issued at loadport (Antwerp-Belgium) by AmSpec Belgium indicated that the gasoline complied with Nigerian Specification.

    “The NNPC quality inspectors, including GMO, SGS, GeoChem and G&G conducted tests before discharge also showed that the gasoline met Nigerian specification,’’ he said.

    Kyari noted that as a standard practice for PMS import to Nigeria, the said cargoes were certified by inspectors appointed by the NMDRA.

    “It is important to note that the usual quality inspection protocol employed in the load port in Belgium and our discharge ports in Nigeria do not include the test for per cent methanol content and, therefore, the additive was not detected by our quality inspectors,’’ he stated. However, to prevent the distribution of the petrol, the NNPC CEO said the company promptly ordered the quarantine of un-evacuated volumes and the holding back of the affected products in transit (truck & marine).

  • GSI: More hurdles for chronic loan defaulters

    GSI: More hurdles for chronic loan defaulters

    The Central Bank of Nigeria (CBN) is taking major steps to get bad debtors pay back their loans. To achieve this objective, the regulator has amended the guidelines on Global Standing Instruction (GSI) to capture borrowers until loans are fully paid.The GSI has been empowered by the apex to debit accounts of chronic loan defaulters in any bank within Nigeria to recover their debts. For many stakeholders, the GSI implementation will be a bad ending for recalcitrant defaulters as the policy implementation gathers momentum, writes COLLINS NWEZE.

    It was a busy Tuesday afternoon in Lagos. Business executives and entrepreneurs  were rushing to beat the usual traffic on the Third Mainland Bridge, which separates the Lagos mainland from the Island.

    For Managing Director/CEO, Busyday Merchants   Limited, Silas Stevens, getting to his banker at Ikoyi, Lagos before 10. am was priority for two reasons.

    He needed to discuss N1 million un-authorised debit on his account the previous day. Next was to  stop his clients from making further payment into the account till further notice.

    Stevens is one of the several business owners whose accounts were flagged by the Central Bank of Nigeria (CBN) for borrowing and not being able to meet loan payback conditions.

    The CBN had recently taken major steps to get bad debtors pay back or be sanctioned. This followed the full implementation of the Global Standing Instruction (GSI) that allows debtors’ funds to be seized in banks.

    Banks recovered N50 million bad loans from debtors in the first week of  the implementation.

    “For five months,  we could not even open our office and there were staff salaries to pay. As we speak, we have still not started business fully. It’s a trying time for us because the interest on the loans  have not been suspended and the tenor of the facility has elapsed. That’s why we have not been able to payback the loans,” he said.

    Surprisingly, while the policy was being implemented, the CBN directed banks to lend more to the economy.The apex bank had directed that banks lend at least 65 per cent of their deposits to customers in a new Loan- to-Deposit Ratio (LDR) plan or be sanctioned through restriction on their deposits.

    FBN Holdings Plc, United Bank for Africa Plc and Zenith Bank Plc expanded their loan books by over  N500 billion to dodge heavy penalties from the CBN, S&P Global Market Intelligence calculations showed.

     

    More loans to the economy

    The total gross credit to businesses rose from N19.4 trillion to N23.5 trillion in the last one year, representing  over 21.1 per cent increase, the  CBN said.

    In a state of the economy and financial sector report endorsed by CBN Governor, Godwin Emefiele, the apex bank said agriculture, manufacturing, power and healthcare took the lion share of the loans disbursed.

    The apex bank also granted regulatory forbearance that allowed banks restructure loans given to sectors severely affected by the pandemic and strengthened the Loan-to- Deposit Ratio policy, which has resulted in a significant rise in loans provided by financial institutions.

    Emefiele explained that working with the fiscal authorities, the apex bank created a N50 billion target credit for affected households and small and medium enterprises through the NIRSAL Microfinance Bank, against which N363.5 billion has been disbursed to over 767,000 households and micro businesses.

    The regulator also mobilised key stakeholders in the economy, under the Private Sector Coalition Against COVID-19 (CACOVID) team that raised N39.646 billion to support the fight against the scourge.

    Also, Emefiele announced N1 trillion loans to boost local manufacturing and production across critical sectors of which 53 major manufacturing projects, 21 agriculture related projects and 13 service projects are being funded from this facility.

    The CBN boss also created N100 billion intervention fund for pharmaceutical firms and health care practitioners to expand and strengthen the capacity of our healthcare institutions.

    “We have increased this fund to N200 billion to accommodate more players in the healthcare sector, such as phytomedicine practitioners and manufacturers of medical devices and vaccines. Our primary focus is to create a hub where medical officers can have access to diagnostic equipment to carry out quality medical services at an affordable price for Nigerians,” he said.

    CBN data showed that, so far, N107.7 billion has been released to support 114 healthcare projects, including six greenfield (new) and 108 are expansionary (brownfield).

    ‘’The projects financed included cancer treatment centres, medical diagnostics, pharmaceuticals, dental services, eye clinics, and other healthcare service providers. We are happy to inform you that the intervention programmes have contributed to the increased bed space in our hospitals, and improved health care productivity as evident in the increased number of successfully treated COVID-19 patients.

    ‘’These developmental initiatives combined with our monetary and financial policies have helped to support the recovery of our economy and in re-aligning general macroeconomic conditions,’’ it  said.

    Emefiele said the loans came after the CBN worked with the fiscal authorities in instituting strong policy support measures capped under the Economic Sustainability Plan (ESP), which was designed to contain the effects of the pandemic, restore stability to the economy by helping households and businesses affected by the pandemic and to lift our economy out of the woods through massive interventions to critical sectors.

    “Under this plan, the monetary and fiscal authorities collectively mobilised and injected over N5trillion to support households and businesses. It is gratifying to state that the Central Bank of Nigeria deployed more than N3.5 trillion – about 4.1 per cent of Nigeria’s Gross Domestic Product (GDP) to critical sectors such as agriculture, manufacturing, electricity, and healthcare in order to stimulate and help the economy recover from the deep shock.

    Other specific policy measures, outside loans, undertaken to stabilise the economy and businesses in the face of the pandemic include reduction of the monetary policy rate from 13.5 to 11.5 per cent to improve the flow of credit to households and businesses.

     

    World Bank: Developing economies  under pressure

    Loan default is sometimes linked to economic downturn. The World Bank said private sector in Nigeria and other developing countries are shrinking under intense pressure.

    World Bank Group President David Malpass stated this during his opening remarks at the launch of January 2022 Global Economic Prospects (GEP) report.

    The World Bank chief said a third of developing countries have had a hike interest rates and the private sectors in such countries has continued shrinking.

    Malpass said COVID-19 and the shutdowns are still taking a huge toll, especially on people in the poor countries.

    “In the new GEP, the World Bank is lowering our global growth forecast to 4.1 per cent for 2022. That’s down two-10ths of a per cent from the June GEP and growth was 5.6 per cent in 2021,” he said.

    “The forecast assumes COVID-19 has its biggest impact on first quarter. If the variants persist, there’s a downside risk to the forecast that could reduce global growth further anywhere from 2/10 to 7/10 of a percentage point. Developing countries are facing severe long-term problems related to lower vaccination rates, global macro policies and the debt burden,” he said.

     

    GSI guidelines amended for action

    The CBN has amended the guidelines on GSI. The GSI is a policy that allows banks to debit the accounts of loan holders in other banks to settle defaults.

    In a circular dated January 19, 2022, the apex bank said the frequency of recovery attempts via the GSI platform will be continuous and unrestricted.

    The circular entitled: ‘Re: Global Standing Instruction (GSI) – Individuals’ was dated January 19, 2022 and signed by Chibuzo Efobi, CBN director, financial policy and regulation department.

    “Consequently, please be informed that the frequency of recovery attempts via the GSI platform has been amended from a specific number to continuous and unrestricted,” the circular reads.

    “In other words, the GSI automated loan recovery feature applicable to all loans in the industry will henceforth remain perpetually in place throughout the life of the loan and/or until the loan is fully repaid.”

    The CBN said the initiative was conceived to address the recurring instances of wilful loan default in the industry to identify and watch-list recalcitrant loan defaulters; enhance recovery from eligible and funded accounts in the industry, and improve credit repayment culture.

    The GSI became operational in August 2020 as part of efforts to reduce the rate of non-performing loans (NPLs) in the banking sector.

     

    GSI policy implementation thickens

    Analysts said many banks expanded their loan base following the CBN’s directive. The banks have got its backing and are also relying on the GSI policy to recover their funds despite losses caused to businesses by the pandemic.

    The CBN insisted that borrowers must pay back. “The CBN will not allow people to borrow money and refuse to pay again. That era has gone. If you take money, you will pay back the loan. If you borrow money and refuse to pay, we will take your money wherever you are keeping it,” Emefiele said.

    Macro-Economist Strategist at Afrinvest West Africa Limited, Adedayo Bakare,  said the Non-Performing Loans (NPLs) will continue to rise.

    He said: “We expect that the NPLs will rise further between 2021 and 2022, and the CBN is even trying to recapitalise the banks to enable them absorb the likely shock from the NPLs rise. As the banks do more lending, they are also aware that the risks are still very high, as much as possible.”

    The CBN said the operationalisation of the exercise require borrowers to sign a GSI mandate in hard copy or digital form, after which qualifying accounts are linked to the borrower’s  Bank Verification Number (BVN).

    It added that the GSI mandate form authorises the recovery of an amount specified by the bank from any/all accounts maintained by the borrower across all financial institutions. The GSI empowers banks and other financial institutions to debit accounts of chronic loan defaulters in any bank within the country to ease NPLs growth in the country.

    The CBN’s move to get banks to lend more is significant because over the past two years we’ve seen banks develop apathy in terms of credit creation, which has hampered domestic growth.

    “GSI is what we have been looking forward to as a coordinated approach to addressing the NPL issue in the banking industry. You will agree with me that banks’ failure is not ordained, it’s just the behaviour of what we have. So, culture is a very big issue to credit; we need to address it,” the apex bank said.

    President, Chartered Institute of Bankers of Nigeria, Bayo Olugbemi, had said the scourge of bad loans had been a long standing menace to the sector.

    According to him, the issuance of the GSI policy marks a new dawn in credit management and debt recovery processes.

  • Threats to Nigeria’s march to digital economy

    Threats to Nigeria’s march to digital economy

    About seven years after securing licences from the Nigerian Communications Commission (NCC), the seven Information Communication Technology (ICT) firms, which got the nod to bridge the huge digital infrastructure gap across the country, are yet to move to site, thus unwittingly delaying the Federal Government’s digital economy drive, reports LUCAS AJANAKU.

    if wishes were horses, the Chief Executive Officer, Nigerian Communication Commission (NCC), Prof Garba Danbatta, would have been bracing to inaugurate, at least, one project completed by an Infrastructure Company (InfraCo).

    Delivering a keynote at the national conference and yearly general meeting of the Nigerian Society of Engineers (NSE) in Abuja, with “Expansion of the energy mix for national economic growth” as theme, Danbatta said the Commission has directed InfraCos to “move to site to cascade broadband infrastructure to the hinterland.”

    But it is not clear if any of the seven InfraCos has complied with the directive of the regulator.

    Part of the strategies designed to bridge the huge infrastructure deficit in the telecommunications sector in the country is licensing the infrastructure companies, one each in of the six geo-political zones of the country and one for the megacity of Lagos.

     

    How it started

    The InfraCo project began during the administration of former CEO of NCC, the late Dr. Eugene Juwah, in 2015 as the country marched into the general election. When Danbatta took over the mantle of leadership at the Commission, he didn’t discontinue the project, instead, he reviewed it and gave it a fresh lease of life. The concept of the programme right was to provide infrastructure on open access.

    According to the NCC, each licence cost  N2.5 million for a 20-year tenor. The licences are, however, renewable.Their mandate was to provide Layer 1 (dark fibre) services on a commercial basis with a focus on the deployment of metropolitan fibre and transmission services, available at access points – Fibre-to-the-Node or neighbourhood (FTTN)-to seekers.

    Part of the reasons the licence fee was that low, according to the Commission, was to encourage local and international ICT firms to come and apply to get the job done.

    Over two decades after the famous telecoms revolution, there are still access gaps. There are several communities across the country without access to telecoms services. Most of the highways are also not covered by telecoms services.

    At the last count, no fewer than 114 access gaps have been discovered. Danbatta said  25 million people still lack access to basic telephony. According to NCC statistics, base transceiver station (BTS) deployment in the country has risen from 30,000 to 54,460. This figure is far cry from the numbers the country needed for effective coverage as there still exists a deficit of 26,540.

    The country requires 80,000 BTS for effective coverage of the country’s huge land mass. The BTS, NCC explained, consist of third generation (3G) and fourth generation (4G) while Fibre Optic Transmission cables expanded from 47,000km to 54,725km in the last five years, resulting in improved broadband/telecoms service delivery in the country.

    As the country inches towards the deployment of 5G, the InfraCos were expected to give support and strengthen infrastructure, especially to the hinterland.

     

    Scope of coverage

    The seven InfraCo licencees are MainOne for Lagos, Zinox Technology Limited for Southeast and Brinks Integrated Solutions Limited for Northeast.

    Others are O’dua Infraco Resources Limited for Southwest, Fleek Networks Limited for Northwest, Raeana Consortium Limited for Southsouth and Broadbase Communications Limited for Northcentral.

    Recall that the company that won the Northcentral InfraCo licence returned it about one year after. Brinks Integrated Solution, which has licence for Northeast is expected to cover Adamawa, Bauchi, Borno, Gombe, Taraba and Yobe states.

    Fleeks Networks Limited with Northwest licence will provide services to states, including Jigawa, Kaduna, Kano, Katsina, Kebbi, Sokoto and Zamfara.

    Southeast, which is being handled by Zinox Technologies Limited, would cover Abia, Anambra, Ebonyi, Enugu and Imo states.

    Raeana Consortium Limited would focus on Akwa Ibom, Bayelsa, Cross River, Delta, Edo and River states, all in the Southsouth.

    While MainOne would cover the entire Lagos, Broadbase Communications is expected to handle Benue, Abuja, Kogi, Kwara, Nassarawa, Niger and Plateau.

    Under a new realignment by the regulator, Broadbase Communication may be required to focus on the Federal Capital Territory (FCT) only, which has been carved out as a special focal area as in the case with Lagos. It is hoped that the acquisition of MainOne by Equinix at $320 million would boost the use of the InfraCo licence in its kitty. It is important to note that not all the licencees got their licence at the same time.

     

    Funding

    According to the funding arrangement put in place by the NCC, there’s N64 billion counterpart funding set aside for the InfraCo project. The licencees will, however, attain certain milestones before they could access the fund. Since licencees are not known to have moved to site, there’s no milestone to showcase to qualify them to access the cash sitting idly at the Commission.

    The NCC chief said licencees are not supposed to hold the licence for two, five and 10 years without anything on ground.

    “One year was what was given that there must be evidence of deployment. If there is nothing on ground, there would be enforcement of actions against such licencee, to examine reasons for non-compliance, after which regulatory actions may follow. Assessment would be a year after the order for deployment was granted based on the new review of the InfraCo model,” he had explained.

     

    Challenges

    The project appears to be jinxed since there are no visible landmarks to show for the project which has dragged on for about seven years. The EVC affirmed that there is timeframe for the implementation of these projects, including the building of specialised technology centres in the rural areas to enable stakeholders to harness huge benefits of ICT.

    The NCC CEO stated that the Commission is waiting to see the InfraCos demonstrate a creditable level of deployment in the cities and also discharge the burden of proof of the existence of access points in local government areas (LGAs) in the next five months.

    He said the Commission may have “to take firm regulatory decisions” in the interest of the Nigerian people and start-ups, who have been waiting for the deployment of rural tech solutions to make contributions to the growth of the economy by exploring derivable benefits that accrue from a digitised economy.

    According to Danbatta, one of the benefits of digital economy that NCC has collaborated with stakeholders to bring to fruition is in digital inclusion, where NCC has been working with stakeholders, including the Central Bank of Nigeria (CBN), to ensure the target of 80 per cent digital inclusion is achieved within the timeframe.

    The snail speed at which the project has been moving has been blamed on the various challenges confronting the country. These include insecurity, foreign exchange (forex) palaver, and the reluctance of investors to put their cash where there are little or no chances of getting Return on Investment (RoI).

    For MainOne, it will appear to be competing with the Lagos State government which is also laying fibre optic cables under the Lagos Unified Fibre Project. Giving an update on the project, the state Commissioner for Science and Technology, Hakkem Fahm, said the project is running at full throttle.

    “We started the fibre project at the outset of COVID-19, which was in 2020. We are at over 2200km. We are going to approach the mid-way soon. The project is ongoing; the leading telcos are already engaging the concessionaire on the project,” the commissioner said.

    Insecurity has been a terrible challenge, not only to the telecoms sector but also to the entire polity.

    According to the Minister of Communication and Digital Economy, Prof. Isa Pantami, between January and July, last year, telecoms operators recorded 16,000 outages owing to various acts of vandalism, including fibre cuts, battery thefts, and damage.

    The National Coordinator, Alliance for Affordable Internet (A4AI), Olusola Teniola, said the InfraCo Lagos became impatient with the rollout of the open access model in the state as the state House of Assembly passed a law that gave a company the sole right to rollout the infrastructure for 25 years so that telecos and ISPs that want to expand infrastructure will just plug in.

    He said had the licencee rolled out since 2014 that would certainly not have happened. Teniola said the COVID-19 pandemic impacted InfraCos that had planned to roll out last year both operationally due to global supply chain challenges and financially due to the impact to the global economy and revised country risks concerning capital-intensive projects.

    His words: “At the moment, their challenges are multifaceted; commonly they all struggle with the currency risks that have occurred during the last 18 months. Secondly, some are still negotiating Right of Way (RoW) charges and thirdly, ongoing review of the project based on expectations is still to be concluded with NCC.

    “The issue of security challenges across the country is very real and something that each InfraCo has had to factor in their revised plans. The Federal Government is working to ensure telecoms, especially optic fibre, is fully protected under Critical National Infrastructure.”

    Experts said the NCC and the licencees should get their acts together to ensure the success of the initiative which was a fall out from the National Broadband Plan 2013-2018. Without adequate digital infrastructure, they added, the huge potential 5G technology promises in terms of driverless cars and digital transactions will remain mere wishful thinking.

  • Positioning agric to drive economic growth

    Positioning agric to drive economic growth

    Nigeria is set to curb imports in the face of declining revenue from oil. The agriculture sector looks good to dislodge oil as a major revenue earner and, ultimately, contribute to economic growth and development. However, with various operators in the agric sector facing hard times due to heightened risks from the COVID-19 pandemic and its emerging variants, as well as soaring inflation, experts and stakeholders are canvassing the need to strengthen the nation’s food system to position agric to drive economic recovery. DANIEL ESSIET reports.

    At its launch in Maputo, Mozambique in 2003, the Comprehensive Africa Agriculture Development Programme (CAADP), which is Africa’s policy framework for agricultural transformation, proposed that African countries, including Nigeria, allocate 10 per cent of their total  yearly budgets to boost agricultural productivity.

    However, almost two decades after the proposal, Nigeria, Africa’s largest and most populous economy and one of the 13 countries that signed the CAADP compact, failed to implement the policy. Rather, it allocates mere two per cent of her yearly budget to agriculture. In other words, its public expenditures in agriculture are evidently far below the CAADP target of 10 per cent of total budget.

    For instance, Nigeria’s budgetary allocation to agriculture rose from 1.70 per cent in 2017 to two per cent in 2018. It fell to 1.56 per cent in 2019 and 1.34 per cent in 2020, before recording a slight increase (1.37 per cent) in 2021.

    Nigeria’s low budgetary allocation to agriculture is one of the reasons the sector has not recorded huge progress when measured against the African Union’s (AU’s) African Agricultural Transformation Scorecard (AATS).

    Unveiled on January 30, 2018, in Addis Ababa, Ethiopia, the AATS, the first of its kind in Africa, captures the continent’s agricultural progress based on a pan-African data collection led by the AU’s Commission’s Department of Rural Economy and Agriculture (DREA), NEPAD Agency and Regional Economic Communities.

    A revolutionary new tool to drive agricultural productivity and development, the AATS tracks progress in commitments made by AU Heads of State and Government through CAADP and the Malabo Declaration to increase prosperity and improved livelihoods for transforming agriculture.

    It is against this backdrop that concerned stakeholders and experts in the agric sector have, therefore, called not only for an increase in funding allocated to the sector, but also improvements in the effectiveness of agricultural spending.

    Although Nigeria, partly because of her meagre budgetary allocation to agriculture, failed to record massive progress in agriculture, based on the scorecard, low budgetary allocation is only a fraction of issues holding the sector down and undermining its capacity to play its critical role of galvanising Nigeria’s economic recovery and sustainable development.

    Grain storage has also been identified as a big issue for farmers. For instance, a survey  by SBM Intel, a research and strategic communications consulting firm, indicated that about 47 per cent of Nigerian farmers have no access to post-harvest storage facilities.

    The survey said inadequate storage facilities could lead to post-harvest losses for the farmers that might not be able to arrest the situation by acquiring their own storage facilities. “The lack of storage facilities contributes to post-harvest losses, which could get as high as 60 per cent for tubers, fruits and vegetables,” the survey said.

    Perhaps, to underscore the seriousness of the problem of inadequate storage facilities, statistics cited by The Nation showed that inadequate storage and processing facilities and the accompanying wastages in the tomato value chain alone is costing the country’s economy about $15 billion in Post-Harvest Loses (PHL) yearly.

    Nigeria also lacks a pragmatic approach to addressing farm productivity through the supply of improved seeds and fertiliser at subsidised prices, as well as infrastructure investment in agriculture sector assets. Changing this narrative and strategically strengthening rural-urban linkages to enhance market and value chain opportunities, stakeholders say, are imperative.

    They pointed out that another major factor that has been hurting the sector is insecurity, which seems to have spiralled out of control in many parts of the country, depriving farmers’ access to their farms and sending food prices soaring.

    Indeed, insecurity has worsened in recent times and policy measures have been ineffective in curbing rising food prices, which pushed food inflation to its peak in 15 years. Farmers have been suffering colossal losses as a result of insecurity.

    Similarly, recent studies show that agriculture still suffers from a lack of physical and virtual agricultural infrastructure, low labour productivity, a lack of technical equipment, high rental costs, high production costs, uncertainty, challenges in accessing financing, and a lack of effective leadership.

    For instance, in most  areas of the North, farmers are in need of support to reduce production costs, build irrigation infrastructure, prevent pest damage, build farms that are resilient to climate change, and ensure high yields.

    On the whole, Nigeria has not shown noticeable progress with regard to agricultural mechanisation. So far, the sector has not recorded more than an average agricultural machinery growth rate of five per cent.

    According to analysts, this is because there hasn’t been strong institutional and programmatic commitment to enhance mechanisation. The extent of public-private partnerships in the mechanisation of food value chains is still low, and more needs to be done to meet continental and international targets on agricultural transformation.

    The Chief Executive Officer, Centre for the Promotion of Private Enterprises, Dr. Muda Yusuf, said Nigeria must invest in mechanised farming.

    He lamented that Nigeria with a population of about 200 million is still depending on hoes and cutlasses to meet its food demands.

    Yusuf said: “The projections for the sector in 2022 are not too good given all these challenges that the sector is facing. There is the problem of insecurity and there is also nothing on the horizon to show that the issue will be addressed anytime soon, even as the problem seems to be getting worse.

    “If we do not fix security, how are we going to get people farming and if people are not farming, how do they produce and if they are not producing, how will the price come down? So, from the point of insecurity and logistics, inadequate application of technology to agriculture, the problems are still there.”

    As a result, analysts have charged the Federal Ministry of Agriculture and Rural Development to prioritise value addition through mechanisation and infrastructure development, which are central to attaining the vision of a stable and prosperous food sector.

    This is so because studies have shown that Nigeria remains vulnerable to food insecurity and is unable to meet domestic demand. This is explained by low levels of irrigation and an outdated land tenure system which have kept agricultural productivity low and caused PHL.

    Water is another issue. The consensus is that if there is one intervention by the government that will address agriculture distress, it is making water available for irrigation. Innocent Mokidi, an agro entrepreneur, and indeed, other operators in the sector have been consistent in their plea that the government allocates large funds to modern infrastructure including for agric irrigation.

    Last year, several agro businesses struggled with water supply challenges. The challenges were so serious, resulting in the rising cost of food and reduced menu choices. Also, despite continuous claims of subsiding farm input for easy access by farmers, many smallholder farmers lamented the lack of access to input and subventions.

     

     

    Experts suggest way out

    The Chief Executive, Agricorp Holdings Limited (UK), Kenneth Obiajulu, expressed worries that the agric sector contributes less to the nation’s Gross Domestic Product (GDP), attributing this partly to high cost of production, as well as the fact that country  is a great importer.

    To increase the agricultural sector’s capacity to drive growth and development, Obiajulu canvassed the need to improve agricultural facilities. He said for any agric sector to be resilient, it must have the skills – including entrepreneurial – in sufficient quantity to support the creation of local industries.

    Although in rapid decline, the agricultural sector and its value chain boasts of artisans, technicians and engineers. These people could be harnessed and re-focused into high-tech activities that support automation and mechanisation in agriculture and agro-processing.

    Obiajulu maintained that Nigeria needs a radical change in its approach to agricultural development to generate medium to long-term revenue.

    For the Executive Director, Agricultural and Rural Management Training Institute (ARMTI), Dr. Olufemi Oladunni, the focus should be on stimulating agro entrepreneurs who can provide medium to high-tech services and technologies that support the value chains.

    He stressed the need to push forward rural vitalisation and accelerate the modernisation of agriculture in rural areas. He said the institute is doing a lot to improve the capacities of rural agro industries such as processing to create more jobs in rural areas.

    The Country Manager, OCP Fertilisers Nigeria, Mr. Caleb Usoh, said the most important factor in Nigeria’s agricultural success is continual improvement in techniques and infrastructure and the healthy development of farmers.

    According to him, agricultural modernisation would enhance the country’s ability to ensure supplies of grain and major agricultural products, improve its yield per unit area of land, and optimise the trade of agricultural products.

    Nigeria does not have any communicated agricultural policy. In other words, the industry lacks a blueprint for resuscitating the sector. Experts, therefore, say that fashioning out a workable agric policy will help turn the sector around.

    They also canvassed the need for a nationwide data on farmers, which, according to them, is limited. They note that so far, agro businesses are grappling with the challenge of gathering reliable rural data that could inform planning and budgeting.

    Same for foreign investors whose major challenge in investing in Nigeria’s agriculture is the absence of high-quality and timely agricultural data.

    Last year, the sector received assurance that agricultural research institutes across the country would be revamped and repositioned to promote sectoral growth and food security.

    Former Minister of Agriculture, Alhaji Sabo Nanono, had promised that the government would support the research institutes to enable them do more work on improved seeds that will be suitable to the environment.

    The thinking is that with a population of about 200 million, increased domestic production and emphasis on added value are key to strengthening the economy and achieving food self-sufficiency.

    For analysts, strengthening the agriculture sector would not only help in uplifting farmers, but also benefit the larger section of the rural poor who are engaged in the industry  or indirectly linked with it as consumers.

  • The bitter side of soft drinks

    The bitter side of soft drinks

    The Federal Government favours increasing its revenue heads to significantly boost revenue inflow and, ultimately, meet revenue aspirations. Hence it imposed an excise duty of N10 per litre on non-alcoholic, carbonated and sweetened beverages. But, the policy appears to have left bitter taste in the mouths of consumers and members of the Organised Private Sector (OPS), particularly manufacturers. Apart from possible spike in products’prices, they argue that it could further strangulate the manufacturing sector, among other unsavoury consequences that outweigh the potential revenue gains. Assistant Editor CHIKODI OKEREOCHA looks at issues around the new excise regime on soft drinks.

    This year appears to be off to a rough start, particularly for consumers and manufacturers of non-alcoholic, carbonated and sweetened beverages, more popularly called soft drinks. With the imposition, in the first week of the year, of an excise duty of N10 per litre on such products by the Federal Government, there are fears that the new excise tax regime may have inadvertently set the stage for a challenging year for consumers of soft drinks, producers and other supply chain players in the non-alcoholic beverage segment of the manufacturing sector.

    Those who harbour such fears are quick to point out, for instance, that the re-introduction of the excise duty on carbonated drinks would force an increase in prices of soft drinks. It means that Nigerians – particularly the low-income earner – who can’t do without a bottle of chilled Coca-Cola, Fanta, Sprite, Bitter Lemon or any other brand of soft drink a day will have to pay more or forgo this food alternative. This is so because an additional tax of N10 per litre on soft drinks will force manufacturers who, in a bid to offset tax and maintain profit, will increase prices of their products.

    It is no less a challenging time for manufacturers and supply chain players in the non-alcoholic beverage sector. The Manufacturers Association of Nigeria (MAN), which is probably the most vociferous in the growing outcry against the re-introduced excise duty on carbonated drinks, put the situation as it affects manufacturers in perspective when it said “excise begets high production costs, which in turn, adversely affects production levels and ultimately, result in dwindling profits.This will grossly impact the small and emerging business owners in the non-alcoholic beverage sector”.

    MAN was responding to the January 5, 2022 introduction of an excise duty of N10/litre on non-alcoholic, carbonated and sweetened beverages by the Federal Government. The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, who announced the reintroduced excise during the public presentation of the 2022 Appropriation Act in Abuja, referred to it as “Sugar Tax.”

    She said it would discourage excessive consumption of sugar beverages which contributes to diabetes, obesity, among others, and also raise revenue for the funding of the health sector and other critical expenditures. This was in line with the 2022 budget priorities.

    In coming out with the excise tax, the Federal Government, according to Ahmed, drew strength from the Finance Act, which was signed into law by President Muhammadu Buhari last December 31.

    Indeed, since 2020, each January and the yearly Presidential assent to the Finance Bill, has witnessed the amendment of some tax laws, re-introduction of new taxes or launch of a fiscal policy aimed at shoring up the nation’s tax revenue. For instance, in January 2020, the Finance Act 2019 was enacted   increasing the Value Added Tax (VAT) by 50 per cent, from five per cent to 7.5 per cent.

    Similarly, in January 2021, the Finance Act 2020 lowered the levies imposed on the importation of fully built vehicles by 35 per cent at the detriment of local automobile manufacturers. The levy was meant to protect local manufacturer from competition from foreign auto manufacturers.

    Same for January 2022 when the enactment of the Finance 2021 imposed an excise levy of N10 per litre on non-alcoholic, carbonated and sweetened beverages. And in all of these, the perception is that the Finance Act and its amendment of some of the nation’s tax laws targets operators in the manufacturing sector.

    OPS kicks

    Expectedly, the latest review of the tax laws, which imposed N10/litre excise duty on carbonated drinks was not well-received by members of the Organised Private Sector (OPS). They have refused to be swayed by Ahmed’s explanation that the new excise regime would discourage excessive consumption of sugar beverages which contributes to diabetes, obesity,  among others.

    Even before the announcement of the excise on January 5, MAN had insisted that the Federal Government’s increased drive for collection of taxes and levies clearly verged on multiplicity of taxes. Although the excise levy, according to the Finance Minister, was in line with the 2022 budget priorities, the Director-General of MAN, Mr. Segun Ajayi-Kadir, had raised the alarm that the excise duty would be counter-productive.

    His words: “The excise duty on carbonated drinks means further strangulation of the manufacturing sector that is already burdened with multiplicity of taxes/levies and fees. The industries operating in this segment are already operating with extremely low margins, so the planned excise will push most of them over the edge.

    “We risk an unprecedented buildup of unplanned inventory, downsizing of labour force and factory closures. All these would vitiate the revenue expectations of governments and, therefore, counterproductive.”

    With the eventual imposition of the levy, Ajayi-Kadir and other members of the OPS have continued to scream blue murder, this time, reeling out figures to justify their position. For instance, the MAN DG said the excise duty will likely cause a 0.43 per cent contraction in output and about 40 per cent drop in total industry revenues in the next five years. This, according to him, means that the revenue aspirations of the government in introducing the policy may not be justified in the long run.

    Ajayi-Kadir did not stop there. He said while the government is estimated to generate an excise tax of N81 billion between 2022 and 2025 from the group, this will not be sufficient to compensate the corresponding government’s revenue losses in other taxes from the non-alcoholic beverage sector, the corresponding effect of reduced industry revenue on the government is estimated to be up to N142 billion contraction in VAT raised by the sector and N54 billion CIT reduction between 2022 and 2025.

    The MAN chief also pointed out that Nigeria is the sixth highest consumer of soft drinks, but per capita consumption is low. “Introducing excise will easily reduce production capacity causing manufacturers to struggle to meet investor commitments as well as cause investors to take investments to other countries,” he complained, adding that a decrease in production levels or ability to purchase raw materials as a result of the excise tax will result in reduced profits for the supply chain players in the non-alcoholic beverage sector.

    While insisting that the policy will have unpleasant impact on employment, households and consumers,” manufacturers pointed out that as seen from previous impact analyses, excise affects production outputs, revenue and profits, and this causes companies to pursue cost cutting measures to reduce the effect of diminishing revenue and profits by reducing employee salaries or retrenchment.

    They reminded the Federal Government that Nigeria’s unemployment rate is at about 33.3 per cent and this rate is projected to further increase. They, therefore, said a further cut in jobs for an industry that employs over 1.5 million people directly and indirectly will worsen the unemployment position in the country, resulting in an increase in social vices and moral decadence.

    “It would appear that the goose that lays the golden eggs (i.e. food and beverage sector) is being led to perdition, seeing that the affected sub-sector has contributed most significantly to the economy and taxes, despite the debilitating impact of Naira devaluation, inadequacy of forex and the COVID-19 pandemic.

    “The sector contributed the highest (38 per cent) of the total manufacturing sector to the GDP. It comprises 22.5 per cent of manufacturing jobs and generates more than 1.5 million jobs. So, this excise would certainly cast a sunset to this performance,” manufacturers argued.

    However, manufacturers are not alone in their outcry against the policy. The Nigeria Employers’ Consultative Association (NECA) also joined the fray, calling for the suspension of the excise duty to preserve businesses.

    The employers’ body expressed concerns about the manufacturing sector’s survival this year and beyond, noting that the policy will lead to further stifling of businesses. A statement by the association’s President, Mr. Taiwo Adeniyi, also said it will result in reduction of the purchasing power of the masses as any increase in price will likely be passed to the consumers.

    NECA did not stop there. It lamented that manufacturers have been contending with the dislocations caused by the COVID-19 pandemic and its emerging variants.The association kicked its heels in, insisting that government, in the interest of Nigerians and the economy, should suspend the re-introduction of the excise duty.

    The government, it added, should continue to support and promote the industry to attain full recovery after the onslaught of the pandemic and position it to further accommodate the teeming unemployed Nigerians, particularly the youth.

    NECA pointed out that at a time like this, governments, globally, continue to provide incentives for industries to speed up recovery from the shocks of COVID-19 pandemic, inflation and escalating costs.

    According to the association, Nigeria cannot afford to be doing the exact opposite, as manufacturers across all product segments need a respite, especially in the light of the unprecedented increase in production and operating costs.

    It added that the OPS in Nigeria is clamouring for business environment that will be agile, less bureaucratic and cost-effective to support general business operation.

    For the President of Nigeria Labour Congress (NLC), Comrade Ayuba Wabba, the health reason advanced by government to justify the excise duty did not sound plausible. “We are amiss why the government did not place the excise duties on sugar itself as a commodity rather than on carbonated drinks.

    “The truth of the matter is that additional increase in the retail price of carbonated drinks would put more Nigerians at risk of serious health challenges as many people would resort to consuming sub-standard and unhygienic drinks as substitutes for carbonated drinks,” he said.

    The NLC chief pleaded with the government not to constrain manufacturers of soft drinks to divest from Nigeria just like two giant tyre manufacturers, Dunlop and Michelin, did when they moved to Ghana.

     

     

     

     

  • Wanted: Single security screening procedure for airports

    Wanted: Single security screening procedure for airports

    Multiple checks by security agencies, aeronautical authorities and others saddled with border management at airports in Nigeria have become a torn in the flesh of passengers and other users of the airports. The cumbersome and time-consuming check-in procedures have become a stumbling block to the facilitation of travellers. They have also created avenues for extortion of passengers. However, a coalition is emerging to reverse the trend, by driving the implementation of a single window screening at the airports. Aviation Correspondent KELVIN OSA OKUNBOR reports.

    Security architecture at airports across the globe is assuming new dimensions as the deployment of technology is reducing manual screening of passengers.

    Collation of passenger biometrics and other relevant data about those who use the airport and the sharing of such data, among security agencies, is delivering good results.

    The exchange of advanced passenger information among security, airport authorities and border management agencies, experts say, has assisted in reducing possible threat to safety at airports in the terminal buildings and the airside.

    It is for these reasons that global aviation organisations, viz, International Civil Aviation (ICAO), Airports Council International (ACI), International Air Transport Association (IATA) and other bodies continue to evolve safety programmes and policies that would improve security at the air borders.

    Significantly, players in the global aviation circle are beginning to push for the centralisation of airports security screening procedures, which lays emphasis on a single window for processing passengers before they board the aircraft.

    Experts say airport operators match each individual checkpoint with the best suited screening methods and technology available.

    Experts say with the new move gaining traction globally, technology is throwing up options for passengers screening at airports adopting the three dimensional x- ray method.

    While some airports across the globe are experimenting with 3D X-ray technology to provide a better, more secure screening process, others are deploying liquid and bottle scanners or shoe scanners.

    Nigeria is yet to embrace the latest security screening systems  at its international airports.

    Minister of Aviation, Captain Hadi Sirika, said the Federal Government  is working hard  to expand infrastructure  in the sector to improve safety and security.

    Although some scanners were installed recently by the Federal Airports Authority of Nigeria (FAAN) to boost security at the airports, the challenge of multiplicity of checks by different agencies still persist.

    Managing Director, FAAN, Captain Rabiu Yadudu, said the authority is scaling up efforts to improve security and screening of passengers at the airports.

    He said the authority is ramping up efforts to improve facilities and reduce multiple points at the airport. He said efforts would be made to strengthen the establishment of positive security practices among employees and align security to the core business goals of the aviation sector.

    The complaint of many passengers travelling through airports in Nigeria is yet to be fully addressed by relevant authorities.

    Only in 2019,  air travellers  identified airport security screening processes and delays as two of their biggest pain points when travelling.

    The  2019 Global Passenger Survey indicated passengers’demand for more technology to improve their travel experience.

    The results were based on 10,877 responses from passengers across 166 countries, including Nigeria.

    In Nigeria most  airports have numerous screening checkpoints situated in various areas of its facility. Passenger, cabin baggage, hold baggage, cargo, and non-passenger screening are typical checkpoints.

    In Nigeria, a coalition is emerging on how to achieve a single security screening point for arriving and departing passengers.

    Recently, the  House of Representatives began moves to spearhead a major reform of the nation’s international airports in support of the Federal Government’s Ease of Doing Business (EoDB) initiative.

    Part of the objective of the new thinking is how to  usher in a single security screening point for arriving and departing passengers.

    This followed the outcome of the meeting with the Speaker of the House of Representatives, Hon. Femi Gbajabiamila, House Committee on Aviation, Committee Chairman on Health, that of Agricultural  Services and other relevant Committees’ chairmen.

    It also included the leadership of  the agencies at the airports and the Special Adviser to the President on EoDB, Dr Jumoke Oduwole.

    At the interactive session,  Gbajabiamila  urged the Chairman of the Committee on Aviation, Hon.Nnolim Nnaji, and other relevant Committees’ chairmen to work with the heads of the aviation agencies to come up within two weeks a Bill that would ensure a single security outfit similar to Transport Security Administration (TSA) in United States that would take charge of security at the airports.

    He said the menace of touting and extortion at the airports must be tackled squarely with more stringent measures, adding that the problems remained unabated because there were no severe consequences.

    The Speaker stressed that travelling through the airports must be made as seamless as possible, noting that the level of stress and discomfort travellers go through at the prime gateways must be eliminated.

    “Our airports must give travellers the comfort they deserve, the facilities must work,” he added, noting that the situation must change.

    Nnaji  noted that the Federal Government’s intervention was needed to help FAAN fix the aging infrastructure at the various airports, especially Lagos and Abuja ,which are the major gateways.

    Nnaji’s appeal was sequel to an earlier explanation by the FAAN Managing Director, Captain Rabiu Yadudu that the Murtala Mohammed International Airport, which is over 43 years old, required an overhaul because the facilities had been overstretched beyond their life span.

    The  Special Adviser to the President on EoDB, Dr. Oduwole, expressed appreciation to the leadership of the House of Representatives and the Aviation Committee Chairman, Nnaji, for the initiative, adding that the situation at the nation’s prime gateways remained a huge embarrassment to the country.

    She aligned her position with that of Nnaji that the kind of image some of the officials at the airports present to  the nation could not promote the philosophy behind the EoDB, stressing that such was capable of scaring foreign investors.

    The Speaker directed Nnaji to invite the Managing Director of FAAN, Captain Yadudu; the Director-General of NCAA, Captain Musa Nuhu, and the leadership of agencies involved in facilitation of passengers and goods at the airports, including  Dr. Oduwole, to discuss the issues of touting and extortion at the airports.

    Also, Aviation Round Table (ART), a body of professionals in the aviation industry, has thrown its weight behind the centralisation of security screening checkpoints at the airports.

    The industry thinktank described  the multiple checks by various security agencies as a disgrace to the country.

    Its President, Dr. Gabriel Olowo,  lamented that despite the EoDB,  myriads of security points at the airports had made nonsense of the policy.

    He said implementation of laws had been the major challenge confronting the nation.

    Olowo explained that if the House of Representatives led by Hon. Gbajabiamila, the Speaker of the House, could ensure the implementation of the policy, the image of Nigeria would swell in the comity of nations, while Ease-of-Doing-Business would be achievable.

    Olowo, who is also the President of Sabre Travel Solutions, Central and Western Africa, declared that it was necessary for the Federal Government to sanitise its airports, stressing that if the U. S.’s TSA  could centralse security information, Nigeria should not be an exemption.

    He said: “The Gbajabiamila’s House of Representatives is thinking of giving Nigeria something close to TSA. That is sharing security information and just having one security checkpoint at the airports. That is cheery news for me and the entire body of ART is throwing its weight totally behind this.

    “Most of the time, when policy statements come out, implementation always becomes a big task. We have spoken at various times on this matter. Our  Secretary-General, Group Capt. John Ojikutu, has released a lot of documents on how this can be done several years back.

    “The Vice President, Yemi Osinbajo came, issued a statement on this matter, the many checkpoints disappeared at a time. I don’t know whether it was gazetted or not. Action has always been our problem. We have discussed many issues and matters, but implementation has always been our problem. If that will be our Christmas gift for 2021 for the sector, get it done and sanitise our airports.

    “All these many checkpoints at our airports, and the ‘what do you have for the boys?’ Give us a bad image non-stop. All these unnecessary compliments at airports, rather than concentrate on the job; check the documents and let the fellow move are unwarranted.”

    He insisted that the effort to satinise the airports was a task that must be accomplished by the government.

    According to him, in the U.S., for instance, the information about a passenger – political criminal, corruption, drug and others – are in one centre and accessible by the security agents, insisting that those could also be replicated here through technology.

    “Three stages only. Once the check-in is done, you have your boarding pass, you go to the security door and once that is done, you are in the screening area. You go to the shopping lounge. As simple as that.

    “But, here, you go through immigration, somebody is in the security team, somebody will check your international passport in and out. World best practices have become an issue for us in Nigeria. Why? Are we the only country in the world that has a problem? Best practices are best practices and it is done in other economies. I salute Gbajabiamila and I hope he is able to drive this to a good conclusion,” he said.

  • 31 get Rotary’s N1.5m grant

    31 get Rotary’s N1.5m grant

    No fewer than 31 members of the Onigbongbo community in Lagos State have benefited from the N1.5 million grant offered by the Rotary Club of Onigbongbo as part of its Micro Credit Scheme.

    The club’s President, Adetunji Adebusuyi, said this during a visit to the monarch of Onigbongbo, Oba Oluwasegun Adeyemi Ajasa. He said the cash was meant for the small scale business men and women to grow their businesses. He added that the scheme was ongoing and would be rolled over. “We plan to increase it from N1million to N1.5million to accommodate more people,” he said.

    He described the repayment as “fantastic” and that the rate of default was very low. “It’s not that they didn’t pay. There was a delay in repayment,” he said. He further said the club was sourcing funds to enable more people gain from the scheme.

    Oba Ajasa thanked the club for the gesture and its continued assistance to the community in other areas in the past 30 years.