The Nation Newspaper

Category: Business

  • Union seeks payment of outstanding NITEL workers’ salaries

    The Senior Staff Association of Communication, Transport and Corporation (SSACTAC) has asked the Federal Government to pay Nigeria Telecommunications Limited (NITEL) workers their outstanding 11-month salaries.

    In a communiqué signed by its President, Mr Adetunji Adesunkanmi and General Secretary, Mr Chile Ekeke, at the end of its National Executive Council meeting, the group said many of those associated with telecoms firm were unimpressed with government’s attempt to privatise it.

    It said the privatisation had not impacted positively on NITEL’s operations.

    It appealed to the Federal Government to conclude NITEL’s privatisation, adding: “Government should take the privatisation exercise seriously”.

    Besides, the communiqué expressed worries over fuel shortage, insecurity and the state of the nation

    It condemned the continued fuel scarcity in the country, asying it affects the movement of people, goods and services, as well as, increasing cost of living and making inflation to go up.

    It pointed out the need to address the challenges of insecurity.

    “The session notes with great concern the high level of insecurity in the country, which discourages investment, growth and development.

    “We, therefore, urge the Federal Government to brace by nipping in the bud these senseless killings, kidnapping, armed robbery and political assassination being perpetrated against innocent Nigerians.”

    It commended the prompt interventionist strategies used by the government and some relief agencies to address the flood disaster in the country.

    It recommended the establishment of an environmental impact assessment committee at all tiers of government to guard against future occurence.

  • Diversion of containers: EFCC swoops on Lagos ports

    Diversion of containers: EFCC swoops on Lagos ports

    Senior officials of the Economic and Financial Crimes Commission (EFCC) will visit the Lagos ports today, to investigate the illegal clearance of about 35 containers that were being moved to a Bonded Terminal in the Badagry- Expressway axis, but were allegedly diverted to an unknown destination without the appropriate duty paid to the Federal Government by the importers and the clearing agent, The Nation has learnt.

    Sources said the Chairman of the anti-graft agency, Mr Ibrahim Lamorde, directed his officers to investigate the matter after realising that the duty paid on the diverted 35 containers is over N2.5 billion.

    Sources said the Presidency became unhappy when it realised the involvement of some senior Customs officers from Tin Can Port and directed the EFCC officials to unravel their involvement.

    Sources said officials of the commission would also investigate other top officials of government agencies at the port and authenticate the freight forwarding firm that allegedly cleared the containers.

    “The government became worried when it was realised that some senior government officials were involved in the scam and that was why the EFCC has been drafted to the port to investigate the matter and other sundry issues to bring sanity to the port.

    “The Presidency is not happy that such quantum of goods could get out of the port without anybody accounting for them.

    “The issue becomes worrisome when certain individuals and agencies of government are deliberately thwarting the efforts of the Federal Government to sanitise the ports based on the high level of insecurity in the country. “If senior Customs officers can be involved in such shady deal, it means the government must be very vigilant so that some greedy individuals do not endanger the lives and property of the people,” the official said.

     

  • Oil sector leads forex utilisation

    Oil sector leads forex utilisation

    The oil sector was the highest user of foreign exchange (Forex) in the first half of the year, despite the fact that the Federal Government reduced subsidy claims on petroleum imports.

    According to a report released last week by FBN Capital, the oil sector used $5 billion, which fell sharply from $6.4 billion recorded in the first half of 2011. This, it said, was due to fuel subsidy cut in January and the ensuing audits.

    The substantial imports of food products, most of which could be grown locally, accounted for 13.5 per cent of the total. Nigeria’s insatiable appetite for imports, which is a function of the limited productive capacity of its economy has assisted in raising the ceiling for forex use.

    The report showed that $22.2 billion forex inflows were recorded from the Central Bank of Nigeria (CBN) while autonomous sources consistently provided the greater forex supply worth $33.5 billion, adding that imports of goods and services hit $28 billion and $10.9 billion respectively.

    Nigeria’s Eurobond yields fell for the seventh day to a record after CBN Governor, Sanusi Lamido Sanusi, said the nation’s financial system was not under threat from the withdrawal of speculative investments.

    Borrowing costs on the $500 million debt due January 2021 slid four basis points, or 0.04 percentage point, to 4.162 per cent in Lagos, the lowest since it was issued in January 2011. The yields have dropped 213 basis points from a high of 6.29 per cent on December 21, 2011.

     

    Inter-bank

    The inter-bank rate fell 104 basis points to 11.1 per cent on December 6, due to liquidity injection through matured treasury bills. Although, the CBN auctioned N177.61 billion on December 5, the net withdrawal on December 6 was N49.6 billion.

    Olukunle Ezun, a Fixed Income and Currencies Analyst at Ecobank Nigeria Plc, said CBN’s liquidity management remains active and supported by the circular issued on August 1, tightening currency and the Monetary Policy Committee’s decision to leave the Monetary Policy Rate unchanged at 12 per cent.

    The naira weakened 0.2 per cent against the dollar in the Inter-bank on 6 December, despite CBN’s liquidity management efforts. It closed the week at N157.35 to a dollar.

    According to Ezun, although the CBN has supplied sufficient dollar at the twice-weekly Wholesale Dutch Auction System (WDAS) auctions, the auction process is devoid of the required competition needed to generate significant secondary market activity.

     

    Oil export/ corruption

    Oil exporting countries are more corrupt than they ‘should be’ than non-exporters, Renaissance Capital (RenCap), an investment and finance firm, said.

    A report from the firm said oil exporters constitute 18 of the 25 countries that are measurably more corrupt in the Transparency International (TI) survey than per capita Gross Domestic Product (GDP) measures suggest they should be.

    The worst performers, it said, include Equatorial Guinea and Kuwait, with scores at least 30 points lower on the 100-point scale than their peers.The next worst include Turkmenistan and Venezuela, while Greece, Italy and Afghanistan, were each 20 to 29 points lower than their peers.

    The remaining countries include Iraq, Kazakhstan, Russia, Kazakhstan and Ukraine. “These are countries in which debt investors may feel more comfortable, as they can bypass corruption problems by dealing in international courts when things go wrong. But there has been improvements. Russia, which was on the verge of being in Italy and Venezuela’s group, but in the past year, has clearly moved into the middle of the “slightly more corrupt” group,” the report said.

     

    IMF

    The International Monetary Fund (IMF) has developed a balanced view on the management of global capital flows to help give countries clear and consistent policy advice.

    In a statement, IMF said global capital flows have increased dramatically in the last decade, from an average of less than five per cent of global Gross Domestic Product (GDP) during 1980 to 1999 to a peak of about 20 per cent by 2007. In the past, countries’ capital accounts have ranged from almost completely closed to completely open and, while most countries have moved in the direction of greater openness, wide differences remain.

    It said the financial account in a country’s balance of payments covers a variety of financial flows, mainly foreign direct investment (FDI), portfolio flows including investment in bonds and equities, and bank borrowing which have in common the acquisition of assets in one country by residents of another.

     

    Financial inclusion

    The number of adults excluded from the financial system would drop to 20 per cent by 2020, Chief Executive Officer, Enhancing Financial Innovation & Access (EFInA), Ms. Modupe Ladipo, said. At the moment, no fewer than 34.9million Nigerians, representing 39.7 per cent are excluded from financial services.

    Unveiling the results of the EFInA Access to Financial Services in Nigeria’s survey, she said between 2008 and 2012, the number of adults that are financially excluded decreased by 10.5 million. She explained that the report was meant to measure trends in access and use of financial services in the country and establish credible benchmarks and indicators of financial penetration in the country.

     

    Recurrent expenditure for states

    The recurrent expenditure of the 36 states was 58 per cent of last year’s budget, FBN Capital, an investment and research firm, said.

    In a report obtained by The Nation, the firm said on the surface, states have a better mix of expenditure but recurrent items accounted for 58 per cent of their aggregate spending in 2011, capital items 38.9 per cent and extra-budgetary costs 3.1 per cent.

    It said personnel consumed 19.2 per cent of the total and overheads, a further 13.7 per cent, even as Federal Government’s minimum wage legislation pushed up the cost of salaries this year.

    At the Federal Government level, the firm said the rise in recurrent expenditure was affecting real sector funding and growth. It said personnel costs amounted to 36.5 per cent of total spending in 2011, and related overheads, an additional 14.3 per cent. Statutory payments to bodies, such as the National Judicial Council and the National Assembly, have accounted for 5.9 per cent of government expenditure year to date.

     

    Offshore Banking

    Banks with foreign subsidiaries have been advised to use resources in their host-countries to boost their operations rather than ship funds from home.

    In a statement, the Central Bank of Nigeria (CBN) urged them to raise funds from the offshore capital market through private placements or public offerings.

    CBN’s advice followed its earlier directive stopping banks from using local resources to fund their offshore subsidiaries. It also stopped quarantee of deposits for foreign subsidiaries.

    CBN Director, Banking Supervisions, Agnes Martins, advised that the banks could also pursue a merger or acquisition; or if external capital raisings fail, submit a strategy for exiting the relevant foreign jurisdictions to the regulator.

    The directive also barred Nigerian banks from guaranteeing the deposits of their foreign subsidiaries and mandates banks with foreign subsidiaries to submit plans showing that their subsidiaries are fully capitalised in line with Basel II and III accords.

     

    Cheque transactions

    The value of cheque transaction declined by 13.5 per cent to N10 trillion during the first half of the year over increasing use of electronic payment. In a Central Bank of Nigeria (CBN) report on the first half of the year released last week, it said the value of electronic card (e-card) transactions rose by 32.8 per cent to N1 trilion from N764.14 billion in the first half of 2011.

    Data on various e-payment channels for the period under review indicated that Automated Teller Machine (ATM) remained the most patronised, accounting for 96.4 per cent, followed by mobile payments with 1.3 per cent and Point of Sale (PoS) terminals, 1.2 per cent. The web (internet) was the least patronised, accounting for only 1.1 per cent of total e-payment transactions.

     

    Financial Inclusion

    The number of adults excluded from the financially system would drop to 20 per cent by 2020, Chief Executive Officer, Enhancing Financial Innovation & Access (EFInA), Ms. Modupe Ladipo, has said.

    At the moment, no fewer than 34.9million Nigerians, representing 39.7 per cent are excluded from financial services.

    Unveiling the results from the EFInA Access to Financial Services in Nigeria’s survey, he said between 2008 and 2012, the number of adults that are financially excluded decreased by 10.5 million.

     

    NDIC

    Microfinance banks (MfBs) that fail to live up to the legal requirement will be closed next year, the Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, has said.

    Speaking at a briefing in Lagos, he said that some MfBs have not lived up to expectations and have refused to pay their premiums to the corporation.

    He said as at September 30, 2012, 698 MfBs and Primary Mortgage Institutions (PMIs) paid N980.79 million as premium to the corporation as against N1,06 million collected from 765 MfBs in the same period in 2011, representing a decline of 8.02 per cent.

    As at September 30, 2012, 130 MfBs and 20 PMIs could not be assessed for premium collection as they failed to submit their certified deposit statements as well as call reports since December 31, 2011.

    He said the corporation is still prevailing on the banks to ensure that it obtains their certified deposit liabilities statements or call reports. Ibrahim also said the Central Bank of Nigeria (CBN) is also considering issuing new licences to MfBs that want to enter the market.

     

    Bank to bank report

    Ecobank Capital, the investment banking division of the leading pan-African bank, Ecobank, has announced that it has successfully raised a $202 million syndicated credit facility on behalf of IHS Holding Limited, Africa’s largest independent mobile infrastructure provider.

    In a statement, the firm said the proceeds will be used as part of IHS’s acquisition of MTN Group Limited’s 1,757 mobile network towers in Cameroon and Côte d’Ivoire with the continuation of IHS’s solar energy and build-to-suit programmes for other wireless operators.

    IHS Holding’s Chief Executive Officer, Issam Darwish, said he is happy with Ecobank, the co-arrangers and participating banks. “The facility was oversubscribed and securing this credit facility reaffirms our excellent reputation on the local and international credit markets. We are delighted the consortium shares our long-term vision of creating an indigenous force in mobile network infrastructure and collectively has the financial capacity to support our pan-African expansion,” he said.

    The Fidelity Helping Hand Programme (FHHP) instituted by staff of Fidelity Bank Plc to assist to support communities has donated some educational materials to Ikoyi Primary School. The group has also renovated the nursery section of the school to enable the pupils to have a more conducive environment for learning.

    The bank’s Assistant General Manager, Public Sector Richard Madiebo said the THE Programme is the staff’s way of supporting the society.

    He said the initiative has helped many people, schools and community to live better lives and achieve success in their different endeavours.

     

  • Coca-Cola appoints new Managing Director

    Coca-Cola Nigeria Limited has appointed Adeola Adetunji as its Managing Director.

    He will replace Kelvin Balogun from January 1, 2013. Balogun is now President, Coca-Cola Central, East and West Africa (CEWA) Business Unit.

    Adetunji is the General Manager for Manufacturing and Trading Services; he serves as Managing Director for Waveside (Pty.) Limited, a subsidiary of The Coca-Cola Company in South Africa.

    Adetunji has spent 19 years in Coca Cola, serving in areas spanning finance, marketing and operations.

    He joined the company in Atlanta in 1993 and was appointed the South Africa Division Accounting Manager three years later.

    He led Coca-Cola in East Africa between 2003 and 2005 and helped to stabilise the business in Southern Africa between 2005 and 2007, before he moved to bottling operations in July 2008 as the East and North Africa Operations Director for Coca-Cola Sabco.

    Prior to joining the Coca-Cola, Adetunji worked in audit and consulting with Spicer and Oppenheimer (now Nexia International) for over three years.

    He is a Fellow Chartered Accountant and holds a B.Sc. in Economics from the University of Ife (now Obafemi Awolowo University, Ife), Nigeria and an MBA in Finance and Strategic Planning from the University of Pittsburg, Pennsylvania, United States.

    “We are very pleased to have another strong professional in Adetunji to lead the Coca-Cola business in Nigeria, one of our strategic growth markets,” said Nathan Kalumbu, outgoing President of Coca-Cola Central, East and West Africa, who will be moving up as the Group President for Coca-Cola Eurasia and Africa Group.

    “We are confident that he would focus on delivering our system growth plan, leveraging the solid groundwork laid over the past two years,” he added.

    Adetunji said: “I am excited at the opportunity to return to Nigeria as steward the Coca-Cola business; and I look forward to working with the team to further strengthen the fundamentals of our business and grow our market leadership.”

  • Waiting in the wings

    Waiting in the wings

    The government plans to complete the construction of agro-airports next year. The airports will facilitate the ferrying of perishable agricultural products abroad, create jobs and grow the economy, writes AKINOLA AJIBADE.

     

    LIKE other sectors of the economy, the aviation industry has its own challenges. But despite these, it is forg- ing ahead.

    Determined to improve facilities at the the airports, the Federal Government recently signed a Memorandum of Understanding (MoU) with 35 investors to remodel the 22 terminals to meet international standards.

    Of the 22, seven are designated as agro- cargo terminals to help in taking perishable farm produce from the country to Europe, America and other parts of the woirld. The aim is to encourage the growth of the agricultural sector, and further increase its contributions to the nation’s Gross Domestic Product (GDP).

    Added to this is the issue of job opportunities arising from designating airports as agro cargo terminals. Aviation sector analysts said the terminals, which will be sited in Markurdi, Jos, Yola, Asaba, Enugu, Akure and Lagos airports, are meant to encourage the growth of the agricultural and aviation industry and further create jobs for people.

    Before now, the air cargo business subsector of the industry was under the control of companies, such as the United Parcel Service (UPS), DHL, FedEX, Abex among others. These firms do not only employ few hands, they also air freight non-perishable goods from one country to another. But with the planned take-off of agro cargo airports in 2013, a lot of job opportunities would be opened for Nigerians.

    Experts said the development is the government’s first shot at agro air cargo business, as hitherto, what was on ground was cargo airlines, which were not specifically designated to do agro business.

    They said the development would have multiplier effects on the economy, by providing jobs for people across sector. If well managed and properly executed, they added that it is capable of creating about one million jobs in the country.

    These jobs would be for people in cargo companies, airports, farmers, among other stakeholders. They said the idea would reduce the pressure on the labour market, by providing different layers of jobs for people.

    Jobs for cargo supervisors, ramp agents/baggage handlers, ramp operation managers, cargo customer service agents, technicians, junior maintenance officers, senior maintenance officers, trainee air cargo brokers, business development managers, and security wardens are some of the job openings that would result from the implementation of the scheme.

    Others are cargo handling assistants; cargo claims handlers, cargo control officers, drivers, office attendants, among others. Also, more people would be employed in haulage firms and farms in the process. According to them, Asian and European countries that have established agro cargo airports are generating huge revenues for the government.

    Findings have shown that countries, such as China, Japan, Thailand, Malaysian, Korea and Singapore have not only designated some airports for agro allied businesses, but have been able to create millions of jobs through this means. Little wonder that Nigeria is taking a cue from those countries, by designating some airports as agro cargo terminals.

    the Managing Director, National Airspace Management Agency (NAMA), Mr Nnamdi Udoh, said the establishment of agro cargo airports would provide job opportunities. He said the idea has created jobs in countries that have established such airports, noting that Nigeria cannot be an exception.

    Udoh said Nigeria is blessed with perishable products, such as mango, oranges, potatoes, pineapples, plantain, among others that can bring revenue to not only the farmers, but also the government. He said Benue State boasts of abundant agricultural products that would bring about job creation, if the people key in to the programe.

    Also, the Managing Director, Best Foods Nigeria Limited, Emmanuel Ijewere said the agro cargo airports would provide jobs for the unemployed. He said the country produces tons of perishable products, and that they are wasted because there is no good storage and processing system in the country.

    He said farmers would get more jobs and improve their productivity if the government can run the agro cargo airports well.

    He said: “When farmers are able to export their products, they would make money and employ more hands. The aviation industry will benefit by way of collecting certain fees/charges.This means that the agricultural and aviation industries will enjoy in the long run. The issue can be likened to a cycle, through which various parties co-exist for growth. That shows that different sets of people would get jobs to do when the idea materialises. It is now left for people to key into job opportunities that the agric sector is bringing into the economy.”

    The Minister of Aviation, MsPrincess Stella Oduah, said the aim of designating certain airports as agro cargo terminals is to achieve significant value chain in farm-to-market concept, enhance rural transformation with multiple effects on job creation.

    Oduah said immense job opportunities are going to be created through the initiative, arguing that various stakeholders would benefit from it.

    “The value of perishable agro businesses in Africa (mainly agricultural products stands at N245 billion (or $1.53billion). The market is shared by only 16 countries in the continent. At the moment, Nigeria has no share in the growing market for foreign exchanges,” she said.

    She lamented that Nigeria has no share in the agric cargo business because of lack of adequate storage processing and transportation of perishable farm products to local and international markets.

    An economist with Lagos Business School, Dr Austin Nweke, said there is nothing wrong in Nigeria enjoying a comparative advantage on some products.

    He said the country boasts of many agricultural products that could be exported to bring in foreign exchange.

    He said agro cargo terminals means a lot to the economy in terms of creating jobs, and increasing government’s revenue. He said people would get jobs directly or indirectly through agro cargo terminals, when they start operating. He advised people to look for compliementary skills, adding that it is only through this that they can get jobs.

    Nweke said once Nigeria is able to get a good portion of the perishable agro market, it’s going to make money for economy growth.

    “I cannot say specifically the number of jobs that would be created through agro cargo terminals, but there are enormous opportunities if the idea is well implemented,“ he added.

  • Group to create 5,000 jobs for Northern graduates

    The National Association of Government Approved Freight Forwarders (NAGAFF) is set to create about 5,000 jobs in the sector for the unemployed graduates in the north, its founder Dr Boniface Aniebonam, has said in Lagos.

    He said there are lots of untapped opportunities available in the business of freight forwarding and trade facilitation in the country which have remained largely untapped and that his group, having identified this, wants to create the much-needed employment.

    To achieve this Aniebonam said his group is seeking partnership with different groups, such as the National Harmonised Traders Association of Nigeria (NHTAN) based in Kano.

     

  • CBN urges banks to protect customers

    CBN urges banks to protect customers

    The Central Bank of Nigeria(CBN) has urged money deposit banks (MDBs) to set up effective consumer complaints management framework to protect the rights of their customers.

    CBN Governor, Mallam Sanusi Lamido Sanusi, said the apex bank has created a customer protection unit to protect the interests of its customers, urging the MDBs to toe the line of the CBN because whenever customers have issues, not many of them come to the CBN to lodge complaints.

    “But that is a problem because the only people that come to us are those who know they can come to the Central Bank. The major challenge is not for the CBN to protect consumers, but for the banks themselves to make sure that their customers are protected; and to make sure they put in place structures to receive complains without them coming to the Central Bank. We are working with Bankers Committee on that,’’ Sanusi said.

    He outlined that the apex bank’s financial inclusion strategy provides the road map for the activities of all stakeholders in the provision of financial services for growth and development of the economy.

    He reiterated that the CBN would aim to reinforce its function in ensuring monetary stability and sound financial structure, to enhance economic development

    According to him, in addition to the implementation of key interventions, the apex bank will continue to adopt some specific models to help drive financial inclusion, including the transformation of the payment system, ensuring healthy financial evolution through the development of specialized banks and alternative sources of finance and financial education and consumer protection.

    He said the apex bank was committed to creating effective policy and regulatory environment that empower and protects the populace.

    Meanwhile, the CBN Governor has explained that the apex bank decided to use banks-led model to jumpstart its mobile money initiative because the CBN is primarily a regulator of banks and as such, will be in better stead to manage teething problems that may arise from a novel initiative like mobile money.

    He added that with the banks taking the formative position, the apex bank would then study the behaviours of the telecoms companies to decide on feasibility of expanding the frontiers of the new initiative without undermining the system.

     

  • Nokia’s e-waste initiative suffers setback

    As countries move to curb the harmful effects of electronic waste by halting its dumping, Finnish phone maker, Nokia, says its ‘take-back’ initiatve in Nigeria has not acheived the desired effects.

    Vice President, West & Central Africa, James Rutherfoord, who spoke in Lagos said the firm would restrategise to contain e-waste from phone use in the country.

    “We have not made enough progress. We will do some more take back. Cans are available at our care centres where we can collect it (the disused phones, batteries, chargers). I think we need to do more in the coming years. We will focus on it and probably put some very good initiative in place. We will continue and put some new initiative in place,” he told The Nation in Lagos.

    According to reports, every month, about 50 millions cell phones are replaced worldwide while only 10 per cent are recycled, adding that recycling will reduce greenhouse gas emissions equal to taking 1,368 cars off the road for a year.

    On the Nokia Asha 205 and Nokia 206 which were unveiled, he said both are available in single SIM or dual SIM versions and give people innovative ways to access social features and share their favourite content.

    According to him, the Nokia Asha 205 and Nokia 206 are the first mobile phones devices to include Nokia’s exclusive Slam feature which allows consumers to share multimedia content like photos, music and videos with nearby friends almost instantly.

  • ‘Demand for skilled aviation manpower will exceed supply’

    ‘Demand for skilled aviation manpower will exceed supply’

    IF urgent steps are not taken, demand for skilled aviation manpower in Nigeria would soon exceed supply as a large percentage of the current pool of skilled personnel in the industry are fast ageing, the Director-General of Nigeria Civil Aviation Authority (NCAA), Dr Harold Demuren, has warned.

    The NCAA helmsman, who spoke with The Nation, lamented that the large pool of skilled manpower available in the industry are above 50 years of age, raising concerns about the future of the industry.

    He said: “Statistics have also shown that the percentage of the youth, less than 40 years of age, is not enough to take over from the older generation. This may lead to scarcity of skilled professionals in the aviation industry.

    According to him, the industry faces a bleak future as the few available skilled manpower available in the country are being poached by airline operators in the Middle East and Europe that are ready to pay fat remuneration.

    He said,“Research has also shown that major carriers in Europe and the Middle East offer Nigerian pilots and engineers more than double the amount they earn in Nigeria and they are ready to poach the few available skilled personnel.”

    The aviation chief said though some African carriers and civil aviation authorities have invested massively on the training of skilled professionals, the search for greener pastures makes male professionals to constantly be on the move, adding that this development has now made the NCAA to be at the vanguard of encouraging women to make careers in the aviation industry.

    “While men are prone to constant migration, women are more stable. NCAA is now in the forefront of encouraging the training of women aviation professionals to take over from the ageing current skilled aviation professionals,” Demuren said.

    According to him, in the last seven years, there has been an unprecedented number of females enrolling and graduating as aircraft pilots and maintenance engineers at the Nigerian College of Aviation Technology (NCAT), Zaria.

    He said: “Most of these graduates are gainfully employed with different air operating certificate holders and approved maintenance organisations. One milestone that was recently achieved was the all female crew of Aero Airline that operated on April 1, 2009, which was the first of its kind in Africa.”

    Demuren lamented that insufficient training capacity to meet demand was also a major challenge confronting the industry in the country.

    “There is also the problem of learning methodologies that are not responsive to new evolving learning style. Accessibility to affordable training, lack of harmonisation of competencies in some aviation disciplines are also challenges,” he said, adding that the training capacity is insufficient to meet current demand.

    According to him, in the next 20 years, over a million pilots, engineers, technicians, cabin crew and air traffic controllers will be required to keep the global industry running, adding that for the air transport sector to remain safe, efforts must be put in place by countries to bridge the manpower gap.

    Sector analysts say it is only through the provision of the requisite technical manpower that safety can be guaranteed in the sector and incessant air mishap stopped.

  • Oil workers threaten to shut down Onne FTZ

    Oil workers, under the aegis of the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have threatened to shut down oil and gas operations in the Port Harcourt zone if anti-labour practices in Onne Free Trade Zone do not stop in three weeks.

    The zone comprises Rivers, Bayelsa, Akwa Ibom, Cross River, Imo, Enugu, Abia, Ebonyi, Anambra and Benue states.

    In a communique at the end of a joint NUPENG and PENGASSAN (NUPENGASSAN) National Executive Council (NEC) meeting in Calabar, Cross River State, the groups expressed worry about the alleged continuing anti-labour practyices by companies in the zone, saying its authorities and the firms have refused to heed the advice by the Labour Minister to respect the rights of workers to join trade unions.

    They accused the firms and FTZE management of maltreating their workers.

    ”We observe that managements of the various companies in the Free Trade Zone continue to harass, intimidate and victimise workers. Consequently, NEC-in-session hereby directs the Port Harcourt Zone of NUPENG and PENGASSAN to shut down all oil and gas operations in Rivers, Bayelsa, Akwa-Ibom, Cross River, Imo, Enugu, Abia, Ebonyi, Anambra and Benue States if these matters are not resolved within three weeks.”

    The workers also reminded Rivers State Governor, Rotimi Chibuike Amaechi, of the agreement reached at the joint meeting of NUPENGASSAN on September 20, 2010, at Aldgate Congress Hotel, Port Harcourt, on the state social levy.

    The agreement, they added, was a review of the levy for those that earn below N100, 000 to be treated as workers in the public sector; inclusion of two representatives of NUPENG and PENGASSAN on the Board of Governors of the new schools; commitment that the rate of the social services levy would not be subject to further review; and the inclusion of the TUC on the Board of Trustees of the Social Service Contributory Trust Fund.

    The workers reminded the government of the commencement date of the law.

    They called on Governor Amaechi to honour the state government‘s side of the bargain.