Kofoworola Belo-Osagie

SOME members of staff of the University of Lagos (UNILAG), mostly non-academic workers, have urged the newly-appointed Acting Vice-Chancellor, Prof. Theophilus Omololu Soyombo not to let the office corrupt him.

The workers, mostly members of the Non-Academic Staff Union (NASU), as well as some of the Senior Staff Association of Nigerian Universities (SSANU) and the National Association of Academic Technologists (NAAT), began gathering at the University Senate before 9 am on Wednesday to await Soyombo’s arrival. Since his appointment as Acting VC Wednesday last week, Soyombo had not used the Vice Chancellor’s office on the 11th floor of the Senate Building. Wednesday was his first day of working in the building, which houses the main administrative offices of the university and the Senate Chambers.

After singing songs to welcome him at the foyer of the Senate Building and listening to his plans for the university, the workers urged him not to joke with their welfare.

They also prayed he look into the non-payment of salaries to members of the Legion, a group of retired soldiers who support the institution’s security unit in providing security; and the exclusion of the names of workers of the International School University of Lagos and the Staff School in the Integrated Payroll and Personnel Information System (IPPIS).

Ganiyu Adesina Adelabu, the immediate past Chairman NASU-UNILAG, urged Soyombo not to change because of the office but remain who they know him to be.

He said: “On behalf of the non-academic, NASU, SSANU and NAAT, we welcome you and we pray that God will guide you and give you all that you need to pilot the affairs of the university at this point.

“I want to appreciate you; you started by saying our welfare will be very paramount. The welfare of members of staff, we are not going to joke with it. That is the only way that we will know that the management recognises us. That is the only way the members of staff will know that management appreciates our contribution to the development of the entire system.

Read Also: Ogundipe, ‘Ag VC’ shun office in UNILAG

“The non-academic staff, none of us can contest for the post of the vice-chancellor. But anybody that jeopardises or try to underrate our straight, will go along (sic) with it. I know you from years back, and I know what you can do. But don’t let that office corrupt you. We want you to continue in the good name that we know you for. We thank you and welcome you again.”

Soyombo said: “I appreciate the last point that you made. Indeed, we should not allow our positions to corrupt us. I can just make a promise to you, but my promise to you is not based on an empty standing. I have been working at the University of Lagos for the past 39 years. I have been in the University of Lagos for perhaps the last 46, 47 years. So for me, the University of Lagos occupies a special position in my heart. I have spent the better part of my life at the University of Lagos. By the grace of God, I have had the opportunity of serving in various capacities, high positions in the University of Lagos.

“Life is not about money but the contribution that one can make and legacy that one can leave behind. I served in academic planning, I served as the managing director of UNILAG Consult, I served as the dean of the faculty of social sciences, and at all times my concern is always general welfare. If we have limited resources, let us distribute and let everyone have something. It will not be much but all of us will get little out of it.”

Soyombo promised to look into the backlog of salaries owed Legion members as well as the IPPIS issue affecting workers of the primary and secondary schools run by the university.

At a ceremony on Monday, the permanent secretariat of the African Continental Free Trade Area (AfCFTA) was inaugurated by Ghanaian President Nana Akufo-Addo and chairperson of the Africa Union (AU) Commission Chairperson Moussa Faki Mahamat. Akufo-Addo was optimistic of better days ahead for trading within the continent. CHIKODI OKEREOCHA examines the agreement

Ghanaian President Nana Akufo-Addo was full of optimism on Monday when he inaugurated the secretariat of the African Continental Free Trade Area (AfCFTA) in Accra.

“The economic integration of Africa will lay strong foundations for an Africa beyond aid. Africa’s new sense of urgency and aspiration of true self-reliance will be amply demonstrated by today’s ceremony,” Akufo-Addo said.

Fifty-four countries have signed on to AfCFTA, of which 28 have ratified.

Akufo-Addo appealed to member states that have not ratified to do so before the next AU summit in December, “to pave the way for the smooth commencement of trading from 1 January 2021.”

The Ghanaian president said: “The destruction of global supply chains has reinforced the necessity for closer integration amongst us so that we can boost our mutual self-sufficiency, strengthen our economies and reduce our dependence on external sources.”

Wamkele Mene, the first Secretary-General of the AfCFTA, said Africa would gain a lot from the agreement.

Mene said: “We have to take action now. We have to take action to dismantle the colonial economic model that we inherited.”

The African Development Bank Group provided a $5 million grant for the establishment of the AfCFTA secretariat.

Solomon Quaynor, the bank’s Vice-President for the Private Sector, Infrastructure and Industrialisation, said: “The African Development Bank congratulates the AU/AfCFTA on the investiture of the Secretariat hosted by Ghana on 17 August 2020.The Bank is delighted to be associated with this groundbreaking, game-changing, transformational continental initiative in furtherance of the objective to create the Africa we want.

“Our support to the AfCFTA is in keeping with the Bank’s role of continental leadership in helping to build special-purpose vehicles that are critical to the successful implementation of crucial institutions to accelerate Africa’s economic development objectives.”

What the agreement means

It is, arguably, the most ambitious and strategic push to build an integrated, diversified and industrialised continent capable of holding its own in the global economy. With its promise of creating a continental trade bloc of 1.3 billion people across Africa, with a combined Gross Domestic Product (GDP) of about $3.4 trillion, AfCFTA is easily the world’s largest trade agreement since the creation of the World Trade Organisation (WTO) in 1994.

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. The trade liberalisation deal is expected to create a Continental Free Trade Area (CFTA) for goods and services in Africa, liberalise and facilitate the free movement of people, investments and businesses across the continent, while also signaling a step towards building strong regional value chains.

The Agreement was seen as an important milestone in promoting Africa’s regional integration and helping to boost intra-African trade, which is currently at 16 to 17 per cent, by more than 52 per cent, worth about $35 billion per year. And it hopes to achieve these by committing African countries to phasing out tariffs on 90 per cent of goods, with 10 per cent of “sensitive items” to be phased out incrementally.

Nigeria is tipped as its biggest potential beneficiary, given her nearly 200 million population and huge market for trade.

Trade liberalisation is expected to improve economic activities with the CFTA in terms of trade and investment. The establishment of the AfCFTA is being progressed in two phases. Phase I has been completed except for two issues: RoO and Schedules of Tariff Concession. Negotiations on Phase II, which are still on-going, include protocols on competition policy, investment and intellectual properties. Such protocols are also expected to be delayed.

Delayed take-off

The COVID-19 pandemic has delayed the agreement’s implementation. Nigeria and other African countries with low per capita income depend on agriculture for their export earnings. The dependence on extra-regional trade imports for food makes African countries vulnerable to disruptions in international logistics and distribution.

This, PwC pointed out, could result in food shortages and an increase in food prices. The COVID-19 pandemic, it also said, has created a crucial demand risk, especially within Africa’s poor population because there is no efficient manufacturing and agricultural sector to improve self-sustenance within the continent. This has increased the risk of food insecurity and exposed the continent to heavy reliance on external aids.

Also worrisome is the fact that the demand for Nigeria and other African countries’ raw materials and commodities in Asia, Europe and North America has declined. The continent’s access to industrial components and manufactured goods from these regions has also been hampered.

It was hardly unexpected. The pandemic has driven the global economy into recession, which in turn resulted in significant drop in demand for African commodities; like agricultural products (such as barley, palm oil, sugar, cocoa bean, cotton, and maize), industrial metal (such as copper, iron ore, nickel, lead, aluminum, and zinc), precious metal (such as gold), and energy (such as natural gas, coal and oil) etc.

This will also affect demand for trade and services within the aviation, financial and telecommunications sectors.

However, the effect on African economies including Nigeria is expected to worsen as supply chains remain disrupted and the value of exports from the region reduces due to drop in demand from international trade partners such as Asia and America who are worst hit by the virus.

“In addition, poor testing facilities, inadequate Personal Protective Equipment (PPEs) for frontline health workers and congested communal settings could worsen the effect,” PwC said, in its latest report titled “COVID-19 and the African Continental Free Trade Area Agreement: Key Considerations.”

The report, which was obtained by The Nation, further noted that apart from causing further uncertainty in a continent already grappling with widespread geopolitical and economic instability, the pandemic could widen the competitive gap between African economies and further undermine the competitiveness of smaller economies that are largely mono-cultural and unable to attract Foreign Direct Investment (FDI).

A disrupted regional value chain

The CFTA seeks to improve industrial development that can benefit continental sustainability especially in the agricultural sector.

But this, according to development experts, can be possible when participating states upscale their industrial and manufacturing sectors which in turn increase the GDP from processing imported raw materials within the CFTA to semi-finished or finished goods for export either within the CFTA or outside.

Sadly however, the COVID-19 outbreak has weakened the possibilities for a regional value chain as industrial development during the pandemic seems to be a secondary alternative for most low-income African economies based on revenue.

Turning crisis into opportunity

While the pandemic is bad news for Nigeria and other partnering countries wishing to leverage the AfCFTA to become globally competitive, the consensus of experts is that the rampaging bug could be turned into a “blessing in disguise” if proper strategies and policies are put in place by the various countries.

Price Water Cooper (PwC) said, for instance, that through the AfCFTA, Africa has an opportunity to reconfigure its supply chain, reduce its dependence on external partners and speed up the establishment of regional value chains that will boost intra-African trade.

“By doing this, African economies can improve their GDP by domestic value added on processed import within the CFTA that can be exported within or outside the continent,” the report said, adding that if given a chance, the regional value chain will grow African economies in Southern and Northern Africa where manufacturing activities are highest in the continent.

It however, said economies in Central, Eastern and Western Africa can plug into this value chain by upscaling their manufacturing sector while becoming competitive within the CFTA to benefit in growth potentials.

For Nigeria, the opportunity of up-scaling the manufacturing sector is more obvious and compelling. The President of African Export-Import Bank (Afreximbank), Professor Benedict Oramah, believes, for instance, that one of the benefits of the deal waiting for Nigeria to grab is the possibility of taking over from China as the world’s manufacturing hub.

Prof. Oramah, who spoke at a recent public lecture in Lagos, cited Nigeria’s rising middle class, as well as her rapid urbanisation, which, according to him, will expand demand for manufactured goods.

He said it is projected that Nigeria’s urban population will reach 264 million by 2030, which is equal to 15 per cent of the projected population in that year. “These will spur demand for critical infrastructure, housing, processed food, fast moving consumer goods (FMCGs) and a host of other light manufactures,” Oramah said.

Continuing, the Afreximbank boss emphasised: “It is the manufacturing industry that will supply these items. Related to the foregoing is the gradual exit of China from labour intensive light manufacturing. Today, Nigeria and Africa respectively import $1 billion and $43 billion of light manufactures from china.

“As China shifts to more capital-intensive manufacturing due to rising labour costs, those goods have to be supplied by somebody. Nigeria and indeed, the entire African continent will have themselves to blame if this projected supply gap is filled from outside the continent.”

Speaking on the topic, “From Commodities to a Global Manufacturing Hub: The Road Ahead for Nigeria,” Oramah added that since manufactures account for about 60 per cent of total intra-African trade, intra-regional trade in manufactures can rise to more than $150 billion by 2022.

While noting that “The opportunity for African manufacturers is, therefore, phenomenal,” the Bank Chief specifically said the preferences that AfCFTA offers can make Nigerian manufactured goods more competitive in many African markets and can also make it possible for integration into regional and global supply chains.

That is not all. PwC also said maximising the potentials of the AfCFTA will be an effective shock absorber if the global economy remains depressed by the pandemic and its uncertainty, adding that it will also make Africa an attractive proposition when the global economy turns around.

In fact, where manufacturers and other stakeholders on the continent see challenges and uncertainties around the AfCFTA, PwC sees a silver line on the horizon. Listen to its team of experts led by Partner Taiwo Oyedele: “The crisis has shown the importance and opportunities for African economies in the digital economy.

“The AfCFTA initiative should not be slowed down, instead it is essential to conclude negotiations on services schedules to allow vital industries to grow, develop domestic solutions and drive regional value chains.

“A consolidated market system will be crucial to ensure that African countries have relative collective power in terms of numbers and bargaining power in the post COVID-19 global economy.”

Digital economy holds the ace

The firm recommends building a digital economy to foster production of higher quality goods and services at reduced costs. This, according to it, will open new channels for value addition and broader structural change.

PwC stated that the way to go is to develop and/or upgrade the digital infrastructure, digital financial services, digital entrepreneurship and digital skills that are thematic pillars of the Digital Economy for Africa (DE4A) to encourage trading digitally across individuals, Small and Medium Enterprises (SMEs) and governments.

The firm was emphatic that countries that can get this development requirement could compete effectively within the CFTA, noting that clearly, Information Technology (IT) support was not considered as an essential service during the lockdown.

“Each government needs to review its Information Technology plan in line with economic digitalisation before trading in the CFTA begins in 2021 as it is now clear that globalisation has gone online,” the report said.

It noted that one important question Nigeria must ask in these uncertain times is how its digital economic strategy – National Digital Economy Policy and Strategy (2020-2030) proposed by the Ministry of Communication and Digital Economy and The Smart Nigeria Digital Economy Project proposed by the Nigerian Government can sustain economic interactions and development in the face of a pandemic.

Such question, according to the firm, was imperative because the CFTA will be competitive. This, The Nation learnt, is so because countries like Egypt with three active digital strategies (National E-Commerce Strategy, Strategy for Social Responsibility in ICT, and Digital Arabic Content Strategy) would have an edge over countries in the market with weak or no digital framework to support trade in goods and services within the market.

Will Nigeria rise to the challenge in the digital space? While answer to this remains in the realm of conjecture, stakeholders are optimistic that going by recent assurances by the Minister of Communications and digital economy, Dr. Isa Pantanmi and the CEO, Nigerian Communications Commission (NCC), Prof. Umar Garba Danbata, Nigeria may emerge strong on the digital economy space before the scheme’s January 1, 2021 new kick-off date.

Pantanmi and Danbata had last week assured that the Federal Government was on course to achieving its digital economy aspiration. That was at the virtual inauguration of Kaduna Emergency Communication Centre (ECC) built by the NCC and five information technology projects by other agencies under the ministry.

Besides, the Federal Government has taken bold steps to demonstrate its commitment to the success of the Agreement by putting different measures in place. For instance, President Muhammadu Buhari, on July 28, 2019, approved the establishment of a National Action Committee (NAC) for implementation of AfCFTA Agreement.

The NAC is comprised of representatives of Ministries, Departments and Agencies (MDAs) with competent and relevant jurisdictions as well as selected stakeholder groups from the private sector and the civil society to coordinate the implementation of all the AfCFTA readiness interventions. The Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, is the Chairman of the Committee.

Other steps taken to position Nigeria to benefit fully from the deal include the implementation of economic policies to attract investors, promote ease of doing business in Nigeria and accelerated activities promoting economic growth and development; launch of a new visa policy where citizens of other African countries will now be issued visa upon arrival in Nigeria as against having to apply for Nigerian visa in their respective countries.

The Federal Government also moved a notch high by implementing different economic stimulus and palliative measures to cushion the effects of the pandemic, including the deferment of tax due date for filing tax returns by companies, waiver of import duty on pharmaceutical and medical supplies etc.

While the new crisis may be another challenging time for Nigeria and other partnering countries, some of the steps so far taken to mitigate the risks are pointers to the collective resolve of African people to see themselves differently and the world to consider the African continent as a partner in finding solutions to complex problems such as COVID-19.

By extension, they are also indications that after the pandemic has ended, the continent will have the chance to become more autonomous and self-reliant, having laid the foundations of economic reforms that give priority to African markets, innovation and local manufacturing.

Women’s sexual reproductive health and rights are touchy. Should reforms be allowed on restrictive domestic laws and policies against abortion? NYISOM DORE offers insight.

Nana, 14, woke up petrified. It is 5:30 a.m. She was supposed to be up by 4:00 a.m., but was deep asleep and did not hear her angry aunt howling for hot water to bath with.

Though scared, she slowly and quietly walks into the kitchen greeted her aunt, but the response was discomforting.

“Are you just waking up?’’ Mrs Alfred growled. “I am sorry,’’ Nana muttered, shaking.

The angry woman rained slaps on poor Nana. Not done, she made to give more slaps but suddenly stopped on realising that Nana appeared to have fainted.

Unsure whether the girl had, indeed, fainted or was just pretending, she took a more critical look at the almost naked teenager and the woman in her told her that something was wrong somewhere. Her little breasts appeared firmer and her complexion lighter.

Further checks confirmed Mrs Alfred’s fears. The poor girl was pregnant! That was not even the most devastating news for the woman. Little Nana’s father was responsible for the 14-week-old pregnancy.

Nana was just seven when she started living with her aunt following the death of her mother. An only child, the responsibility became huge for the father, Mr Dimas, a trader, who had always been heavily dependent on his wife.

Though his daughter often visits on holidays, Dimas is yet to get over his loss and always wished Nana, who is a complete replica of her mother, and reminded him so much of her, could live with him permanently.

Nana had returned from one of such holidays just two months ago.

Since this reality dawned on Mrs. Alfred, she has been pondering over what step to take to help her late sister’s daughter. She had considered terminating the pregnancy and ran to a non-governmental organisation (NGO) for counselling but was turned back by the outfit over fears of flouting the Global Gag Rule.

The U. S. President Ronald Reagan enacted the GGR, which prohibits foreign NGOs, who receive U.S. global health assistance, from providing legal abortion services or referrals, while also barring advocacy for abortion law reforms, even if it is done with the NGO’s personal, non-U.S. funds.

Read Also: Nigeria has 2.8m abortions annually

The policy allows access to abortion only in very rare cases.

Reagan first enacted the GGR, also known as the Mexico City Policy, in 1984. Every administration after Reagan, always took fresh decisions on the policy, making NGO funding vulnerable to political changes happening in the U.S.

The rule forces organisations to choose whether to provide comprehensive sexual and reproductive health care and education without U.S. funding, or comply with the policy in order to continue accepting U.S. funds.

In 2017, President Donald Trump’s Protecting Life in Global Health Assistance policy expanded the global gag rule, applying it to recipients of any U.S. global health funding, totalling an unprecedented 8.8 billion dollars. This means that everything, from HIV and AIDS programming and health systems strengthening to programmes that support water, sanitation, and hygiene are negatively impacted.

Last year, the Trump administration announced a further expansion of the implementation of the global gag rule, restricting “gagged organisations from funding groups that provide abortion services and information, even though those organisations do not get any U.S. aid. This means that organisations, donor governments and funders will be bound by a U.S. government policy, even if they do not accept any U.S. government funding.

Nigeria, with so many challenges, has recently become a breeding ground for monsters that have continued to prey upon innocent women and girls.

Rape and sexual assault has continued to rise with many of such cases leading to deaths of little girls, young women and even infants. Most of the offenders, unfortunately, are usually relations or supposed loved ones.

Unarguably, cases of rape, child abuse, trafficking in persons and other sexual and gender-based violence (SGBV) have increased in recent times in Nigeria, as the scary statistics of women and girls being raped and abused on a daily basis from different parts of the country keep rising, sparking wild and wide reactions.

Figures released by the Inspector-General of Police, Muhammed Adamu, showed that the police received 717 cases of rape between January and May.

Adamu said 799 suspects were arrested over alleged rape offences, 631 of the cases successfully investigated, 57 people prosecuted and convicted, while 52 cases are still under prosecution.

What can the populous African nation do to mitigate the impact of such a dangerous trend that threatens to tear the fabric of its existence, seeing that it certainly cannot tame all these monsters that are on the prowl?

What other means can Nigeria deploy to create an exception to the GGR without risking effective operations of donor agencies such as Ipas, which is in the frontline of this battle?

It is not a secret that nearly 50 per cent of global HIV and AIDS funding comes from the U.S. government; and unfortunately, under Trump’s expanded global gag rule, the quality and availability of HIV services, including treatment, testing, and prevention, is threatened.

With the GGR effectively in place, if a foreign NGO on reproductive health refuses to sign up to uphold the policy, it will lose all U.S funding and technical expertise provided by its agencies such as the U.S Agency for International Development (USAID).

This means that under the expanded GGR, non-U.S. NGOs will not be able to receive any of the country’s funds if they provided safe abortion services, counselling, referrals or advocacy work, even if they used personal funds.

With this, NGOs, that are already experiencing significant funding shortages due to their decision to continue to provide comprehensive sexual and reproductive health care will have to struggle to help those in need.

Important coalitions, networks and movements that advocate human rights, such as abortion reforms and sex workers’ rights will lose momentum due to the chilling effect the global gag rule has on advocacy and collaboration among groups that are gagged and those that are not.

At a recent three-day “Media Training for Journalists on Women’s Sexual Reproductive Health and Rights/Global Gag Rule’’, in Keffi, Nasarawa State, organised by Ipas, stakeholders had made attempts to study and understand the GGR and its implications and consequences on the health of the Nigerian woman.

The stakeholders expressed worry that the lives of millions of Nigerian women, who would want to avoid pregnancy but lacked access to modern contraception were at risk.

The Country Director of Ipas (Nigeria), Mr. Lucky Palmer, noted that every eight minutes, a woman in a developing country dies of complications from unsafe abortion.

“In addition, an estimated 285,000 women, within the same period, have complications from unsafe abortion serious enough to require treatment in health facilities, but will not obtain the care they need,’’ Palmer said.

He said the figures suggest that unsafe abortion has become a major contributor to the country’s high levels of maternal death, ill-health and disability.

According to the Ipas representative, of the 85 million women who get pregnant annually, 40 million of them usually end up having abortions, with developing countries accounting for 98 per cent of the unsafe abortions.

Ipas also said Africa and Latin America accounted for the highest number of unsafe abortions globally.

The organisation expressed sadness that Nigeria was yet to reform restrictive domestic laws and policies that placed women and girls’ health and lives at risk.

It also said Nigeria was preventing women from exercising rights that the government had committed to, under the international law.

Ipas noted further: “In 2012 alone, 1.25 million Nigerian women had an abortion; double of the number estimated in 1996. With the GGR, the numbers will increase and the situation can only get worse.’’

Ipas emphasised that urgent steps must be taken by all stakeholders to make exceptions to the rule or find ways of mitigating its impact on the future of women because only 16 per cent of all women of reproductive age were using the contraceptive, and just 11 per cent are using modern methods.

“That results in almost 10 million unintended pregnancies out of which more than half end in an induced abortion,’’ Palmer said.

Palmer also blamed the worrying global health challenge on the Global Gag rule, noting that the training of journalists to help with awareness and advocacy was one of the ways the organisation was exploring to tackle the issue.

According to him, a big burden is on the media to work closely with relevant organisations in advocating for the enforcement of laws and domestication of Violence against Persons Prohibition Act, to promote women’s sexual rights and health, create awareness and educate the public on the consequences of unsafe abortions.

In a paper on “GGR and its impact on women’s sexual health”, Dr Abiola Afolabi of the Women Advocates Research and Documentation Centre (WARDC) said the rule was limiting women from legally accessing abortion and further taking away their right to make informed choices about their future.

Dr Afolabi suggested that exceptions could be made to the GGR by opposing the policy, pressing the government to increase the country’s health budget, and making available information on the implication of failure to address the issue.

She called for the de-criminalisation of abortion by those saddled with the mandate of making responsible and responsive policies that were in the overall interest of citizens and the world at large.

Mr Emma Ugoji, a journalist and a facilitator at the workshop highlighted the role of the media in achieving the set goals.

Ugoji stressed that without the media, there would continue to be misconceptions about Women’s Sexual Reproductive Health and Rights (WSRHR), which is currently being threatened by the GGR.

He said women, girls and children, especially the vulnerable and poor, were suffering. He added that pregnant women also keep suffering from disruptions in reproductive health services.

According to him, the policy causes more unintended pregnancies, higher rates of maternal mortality, and an increase in unsafe abortions.

He further noted that the global gag rule had not decreased rates of abortions.

“It has, instead, increased the number of unsafe abortions,’’ he said, urging stakeholders to speak out on the need for safe abortions since U.S-funded NGOs had been gagged and could not drive home any campaign.

Ugoji urged the media to be the instrument through which campaigns for exceptions to the GGR would be made and the goal achieved.

Analysts agree with Ugoji and have pointed out that it is only through such exceptions that little Nana will be saved the trauma of giving birth to a son or daughter that will be both her child and brother or sister, in addition to the even more severe consequences of a bleak, blank and black future.

• Dore is of the News Agency of Nigeria

Forty days after the resumption of domestic flights, statistics on passenger traffic continue to plummet, fueling symptoms of collapse for airlines. Even so, there are more seeming headaches for carriers already struggling to navigate around increasing cost of operations for aircraft, the threat of industrial disharmony, fluctuations in the exchange rate and multiple aeronautical charges. KELVIN OSA-OKUNBOR writes that timely injection of bailout promised by the government will get airlines out of the woods

These are not the best of times for operators in the aviation sector as combined factors of COVID-19-induced fear of flying and rising cost of operations continue to threaten the sustainability of the air transport business.

Statistics from regulatory agencies indicate a steady decline in passenger traffic on routes operated by scheduled carriers since domestic flights resumed operations on July 8, 2020.

Though the government staggered the re-opening of airports to make way for phased implementation of new travel protocols, commercial activities at airports are yet to peak.

To put it simply, domestic carriers are in a dire situation in an industry where the ‘bust and boom ‘ circle of airlines is becoming an interesting study for airline economists.

Aviation analysts adduce poor turnout of passengers to the low disposable income of Nigerians yet to recover from the throes of hardship triggered by the lingering pandemic.

Airlines whose major business is to ferry passengers from point to point are more affected in the dip in load factor as they are forced to deploy aircraft on major routes without a corresponding number of passengers on board.

Nonetheless, the problem of indigenous carriers is beyond low passenger traffic as they continue to navigate rising costs of operations, including multiple charges by aviation agencies.

Besides the Passenger Service Charge (PSC), which was recently increased from N1, 000 to N2, 000 by the Federal Airports Authority of Nigeria (FAAN), airlines are now paying more for Jet A1, otherwise known as aviation fuel.

Besides PSC, airlines in Nigeria are buffeted with multiple charges, including ground rent, en-route navigation charges, terminal charges, a ticket sales charge, apron levies, fuel surcharge, Value Added Tax (VAT) on tickets sold and other charges.

These multiple charges, operators say, constitute a clog to the wheel of progress of many carriers which, within 10 years of setting up, roll this aircraft to the graveyard.

Experts say indigenous carriers may be in for tougher times unless the government comes to their rescue by implementing the bailout package it promised during the outbreak of COVID-19 as a stimulus package to airlines already tottering on the brink of collapse.

Signs of early recovery for the carriers do not appear underway as regulatory statistics indicate further dip in passenger traffic.

The development, a source at the Nigerian Civil Aviation Authority (NCAA) hinted, has prompted airlines to scale down the operators to cut losses.

Investigations by The Nation indicated that since July when domestic flights resumed operations, airlines have reduced operational capacity to 20 per cent of their capacity as against over 120 daily flights by leading carriers pre-COVID-19 era.

A source close to Air Peace said the carrier has reduced its flights from 120 daily to just 20 flights on account of the sharp drop in passenger traffic on its major routes.

Other carriers, including AeroContractors and Arik Air, it was learnt, have also reduced their flights to cut losses.

Aviation analyst and Chief Executive Officer of Aglow Aviation, Mr Tayo Ojuri attributed the dip in passenger traffic to non-opening of international flights.

He said the sector could rebound when international flights resume soon, with the possibility to contribute over 30 per cent feed into domestic traffic.

In the interim, he said the government should assist airlines to keep their operations afloat because they play a major role in the national economy as catalysts for movement of people, goods and services.

Promises of a stimulus package

In the wake of airports closure in March 2020, Minister of Aviation, Hadi Sirika said the government had packaged a stimulus plan to save indigenous carriers from collapse.

The windfall, according to the minister, was not going to be the direct release of cash but other interventions that will assist airlines to cushion the losses they incurred during the period when there were no flights.

The promise by the government to indigenous carriers, Sirika said, was some form of intervention to cushion the devastating effects of the COVID-19 pandemic. The assistance, he said, was consistent with global practices to save a critical sector from imminent collapse.

But, a few months after the declaration nothing has happened

Other interventions

Investigations by The Nation revealed that besides the declaration by Sirika, the government had designed a bailout package of N27 billion for the restart of flights, which, to date, is yet to be implemented.

The N27 billion packages, it was learnt, was intended as a cushion for payroll grant to support airlines, aviation ground handlers, caterers, provision of single-digit interest loans with a long-term repayment plan, deferred payment of taxes and filing dates.

Some source hinted that the proposed intervention by the government was also pushing to ensure the removal of Value Added Tax from airline tickets, provision of COVID-19 tests for passengers and crew, waiver of airport rent fees to airport operators.

Experts’ view on the package

Though nothing is considered too much to get the aviation industry out of the woods, President, Aviation Safety Round Table Initiative (ASRTI) Gbenga Olowo described the grant proposed by the government as paltry.

He said it would do little to address the losses incurred by airlines and other players in the sector.

Olowo, however, said Nigerian aviation industry needs timely intervention as governments of other countries have done to assist their air transport sector from the challenges thrown up by the COVID-19.

He advised the government to consider airlines as a priority in the identified projects the intervention was meant to address.

Executive Chairman Airline Operators of Nigeria (AON), Captain Nogie Meggison said there was no better time to assist indigenous carriers than now.

The boss of the umbrella body of indigenous carriers urged the Federal Government to intensify action on the implementation of a stimulus package for the beleaguered sector.

Meggison said such stimulus grants or palliatives to domestic carriers as cushioning measure post-COVID-19 should be channelled through the Central Bank of Nigeria (CBN) to ameliorate the pangs airlines were experiencing.

He said: “We call on the Central Bank of Nigeria to implement the one-year moratorium on principal repayments of intervention loans it plans to give out to airlines. The bank should also reduce the interest rate from nine per cent to five per cent for one year and create an N50 billion target facility to cushion the impact of the virus on airline business post-COVID-19.

“We insist that without the government offering stimulus packages and incentives to domestic carriers to mitigate the impact of the pandemic on our operations, the business would not have achieved much effect.

“It will not be out of place for the government to include deliberate sourcing of loans, grants, tax waivers, special foreign exchange windows and rates, reduction of airport taxes or surcharge for airlines.

“We would appreciate the government if it could consider other options, including approving corporate loans through the CBN and waiver of some of the charges to guarantee the survival of airlines and avoid over 100,000 direct job losses post-COVID-19.”

Continuing, Meggison said: “What we are asking for is not unprecedented. For instance, in the United States of America, airlines are seeking a $50 billion bailout. As part of its response, an Emergency Stimulus Package Bill was passed by the US Senate and House of Representatives which reduced interest rates to 0.25 per cent. Also, the bill granted their airlines tax credit for their losses during the pandemic.

“Our government can do the same by granting the above-stated reliefs to Nigerian airlines as a way of assisting them to recover from their losses during this very difficult time.

“We are aware that Russia, the United States of America, Canada, Britain and other countries have come up with one support or the other for their airlines and Nigeria will not be at default if it looks at options of supporting the industry.

Also, the Chief Executive Officer (CEO) Belujane Konzults, Mr Chris Aligbe, said the government should cushion the severe effects of COVID-19 on the aviation sector.

Aligbe canvassed a loan of less than five per cent paid over 15-20 years for airlines.

Gale of a sack of pilots, engineers

As operators wait for action from the government to inject the stimulus package, matters are getting to a head forcing airline owners to erase jobs.

Three carriers namely Air Peace, Bristow Helicopters and AZMAN Air eased out over 170 pilots from their organisations.

Though Air Peace sacked over 69 pilots in a move calculated to put the carrier on the path of sustainability, it, last week, promised to recall the fired pilots.

The decision by the airline followed the intervention of Sirika.

Citing reasons for the right sizing, Air Peace said it took the painful, but the rightful decision in the circumstances the airline has found itself as a result of the devastating effects of the COVID-19 pandemic on its operations and financial situation.

Industry analysts, however, described as normal the erasure of jobs in airlines, saying global carriers were embarking on the steps to save their organisations from collapse in the face of zero-revenue propelled by COVID-19 restrictions on flights.

A pilot, Captain Idris Yuba said there was nothing unusual about airlines asking professionals to step aside to keep the business afloat.

He said:” Currently, all the airlines, including Air Peace, considered to be the biggest in Nigeria, are struggling in the face of traveller apathy.

“The carriers are seriously hit after they resumed flights in July because of COVID-19-induced challenges not limited the spike in operating costs which continues to increase for aviation fuel, aircraft lease rentals, aircraft maintenance, fluctuating exchange rate, insurance premiums and other obligations to aviation agencies, caterers, feelers, banks and many others.

“Imagine, an airline such as Air Peace with over 120 flights then has come down to about 20. Yet, it has a workforce of over 3, 000 and multiple taxes that are not easing out. The airlines are all closer to the brink than when they began operation.

“Sadly, airline owners are grappling with industrial relations issues such as the insensitivity of aviation workers, especially the pilots and engineers who pose a grave challenge to the survival of the airlines.

“While many of their counterparts worldwide were getting laid off, local pilots are insisting on regular pay despite the obvious. It is sickening that pilots and aircraft engineers’ union threatened to shut down the entire industry. If all carriers shut down, without help from the government, how do Nigerians move around?”

Need for industrial harmony

Meanwhile, the National Association of Aircraft Pilots and Engineers (NAAPE) had threatened to ground the operations of airlines because of the sack of pilots and engineers by three carriers, namely Air Peace, AZMAN Air and Bristow Helicopters.

Nevertheless, such a threat may be invalidated by last week’s interventionist stance of Sirika, the affected airlines and the Minister of Labour, Chris Ngige in Abuja.

Sirika had appealed for the recall of the maximum number of pilots that the airline could accommodate to prevent a possible collapse of the sector as a result of any action by the aggrieved pilots and Engineers.

President of NAAPE, Galadima Abednego said some missteps could have been made in the course of the standoff between Air Peace and the association.

Chairman, Air Peace, Allen Onyema expressed sadness over the ingratitude of some pilots considering the investment made in them to enable them to be comfortable on the job.

He recalled how the carrier trained over 80 pilots and a sizeable number of aircraft engineers with attractive pay packages only for them to disappoint at a time their understanding was needed.

Sirika called for understanding among industry players, including labour unions in the prevailing COVID-19 era, saying it is not the time for unnecessary upheavals.

According to Sirika, it was time for all stakeholders to put their hands on the deck in ensuring rapid recovery of the industry from the effects of COVID-19 pandemic.

Caution by operators

To avoid a crisis in the sector, lead consultant of ETIMFRI Group, Mr Amos Akpan said crucial times lie ahead in galvanising the industry for a rebound.

He canvassed dialogue among stakeholders, including airline owners, regulators and pilots’ association to resolve any form of anticipated industrial unrest.

Akpan said: “Disruption of operations could be disastrous at this stage for the recovery.

“Now we leave the real threat to the existence of our industry and engage in fights we don’t have control of how it will end; even as it is obvious it is an all losers’ fight.

“Workers need to show understanding. If businesses do not earn income, the unpaid fixed costs keep piling. Companies cannot meet obligations, redundancy sets in the industry may gravitate towards comatose.”

A United States of America-licensed flight dispatcher and ground instructor, Mrs Victoria Jumoke Adegbe said part of the pills, the sector needed for recovery is supported by the government to indigenous carriers.

The support, she said, should be in the form of loans and corporate bonds to assist carriers to make up for reduced revenues and liquidity brought about by the pandemic.

Without such pills, she said, some carriers were already showing suicidal symptoms on account of inability to meet their obligations.

As key manufacturers of military equipment and wares scaled down operations, no thanks to the global pandemic, PRECIOUS IGBONWELUNDU reports that Nigerian military has looked inwards to get spare parts and technology needed to keep its fleet active in order to sustain ongoing battles against criminals.

For players in the Nigerian defence industry, the COVID-19 pandemic may have been a blessing in disguise. The reason is not far-fetched. The Nigerian military, especially the Air Force that is a key player in the ongoing counter-terrorism, anti-banditry and all other security operations across the country is sourcing local contents.

With its fleets of aircraft and helicopters always deployed for one operation or the other, the Nigerian Air Force (NAF) needs to have handy, spare parts for repairs as well as upgrade its technologies, necessities the service has not been able to access since the COVID-19 pandemic that restricted logistics supplies as well as forced manufacturers of military hardware in Europe, America and Asia to either suspend operations or scale down operation.

Confronted with the realities of not having these parts delivered when needed vis-a-vis the depreciating value of the naira that will mean paying more than three times the original price of these items; the Chief of Air Staff (CAS) Air Marshal Sadique Abubakar, last week, delegated a team of experts to tour indigenous engineering/manufacturing company, Tranos Nigeria Limited for possible collaboration on the production of spare parts for the service.

The team, led by the Commandant, Air Force Institute of Technology (AFIT), Kaduna, Air Vice-Marshal (AVM) Abdulganiyu Olabisi, also had Chief of Standards and Evaluation, AVM Remigius Ekeh; Chief of Aircraft Engineering, AVM Musibau Olatunji; Director Research and Development, AVM Paul Jemitola; Chief of Staff, Logistics Command Ikeja, AVM Cosmas Ozougwu; Director Public Relations and Information (DOPRI) Air Commodore Ibikunle Daramola; Principal Staff Officer (PSO) Coordination, AFIT, Air Commodore Abdullahi Shinkafi; Commander 301 Heavy Airlift Group, Ikeja, Air Commodore Mike Onyebashi; Senior Researcher, AFIT, Flight Lieutenant Nkemdilim Ofodile and Head, Department, Aerospace Engineering, AFIT, Ameer Mohammed.

Emphasising that Research and Development was major focus of the NAF under Abubakar, Olabisi noted that the service was currently in partnership with at least 30 institutions to boost Nigeria’s technological base as a veritable tool for national development in line with the focus of the Federal Government which prioritises promotion of local content, homegrown technology and innovation as principal means of improving the nation’s foreign exchange earnings.

Addressing reporters after the inspection of facilities at Tranos, Daramola said the partnership was another logical step in developing indigenous solutions to technological challenges of the NAF which is a highly technologically-driven force.

“Given the COVID-19 pandemic, there have also been a number of restrictions placed on air travel that have affected the logistics supply chain in terms of spares and that has driven us to look more inwards for solutions to these issues. Right now, there are problems. Even the factories, the original equipment manufacturers have scaled down in terms of production. So, that will be a problem.

“For Nigeria to be able to move forward and the Nigerian Airforce to make sure it is self-sufficient; we need to look more inwards for solutions. That is why partnerships such as these will come into place to be able to give us solutions that are cost-effective and realistic; that will make self-sufficiency realised not just for the Nigerian Airforce but also for the Nigerian nation,” he said.

On why the NAF chose that particular firm, Ibikunle said Tranos has inherent capabilities in terms of engineering and manufacturing that have to do with metal, telecommunications and production of enclosures; very specific areas the service was interested in.

“We will continue to collaborate with them to come out with specific areas of needs they will work with us to get the solutions we require. The idea is that we will also be able to transfer technology so that there will be a training component that will bring some of our personnel, technicians and engineers here and undergo training, to be able to replicate this ourselves in some of our own machine tools workshops,” he said.

Aside Tranos, the NAF has partnered companies such as Ibeto and Innoson for the production of batteries, and break pad respectively for the Alpha jet. There are also other companies involved in the modification of the Indian-made rockets for Alpha jets which enabled the utilisation of the huge stock of rockets worth millions of dollars that would have been decommissioned and destroyed.

Others are the production of the hydraulic accumulator diaphragm for the autopilot system of the Mi-35 Helicopter, the manufacture of portable battery cart for the Augusta Helicopter fleet and modification of the F-7Ni battery compartment for compatibility with batteries made in Pakistan as well as the repair and calibration of the missile tester for the F-7Ni fighter aircraft.

A further breakdown of the breakthroughs recorded include the production of 500 units of Alpha-Jet bomb release-cartridges, production and test firing of prototype stand-alone Intervalometer, the achievement of  100 per cent success in overhauling Alpha Jets Brakes assembly in collaboration with INNOSON Vehicle Manufacturing Company, in Nnewi, design of  fuse for aircraft bombs, product of prototype 250kg bombs, re-militarisation of A-Jet aircraft acquired from the USA, repair of units of 68mm SNEB rockets and 7.62mm ammunition to enhance weapon availability and production of Power Converter Test Bench.

These modest achievements within such a record time may seem insignificant but to the airmen whose machines have been grounded several times for lack of these ‘small items’ this was no mean feat.

In addition, the NAF’s foremost Air Force Institute of Technology was given a boost with the injection of the unrelenting ‘NAF egg heads’ made up of an array of world-class engineers under the optimisation of local engineering scheme. These initiatives were done to ensure result-oriented research and development.

Engineers refurbish moribund NNS ARADU

Like the NAF, the Nigerian Navy (NN) is advancing its quest for self-reliance with the latest being the successful repair and maintenance of the country’s flagship, NNS ARADU by a team of engineers at the Naval Dockyard Limited (NDL), Victoria Island.

The feat, which was recorded several years after the anti-air, anti-surface and anti-submarine electronic warfare ship went aground and was written off by even its German manufacturers, Blohm & Voss, may be deployed in operations against maritime crimes should the transfer of technology rights being sought by the NN is granted.

NNS ARADU developed mechanical faults in 2005 after a port call in Senegal on her way back from the 200th anniversary of the Battle of Trafalgar in the United Kingdom (UK) where it joined other naval forces to honour the Royal Navy’s Admiral Nelson. Since then, the first MEKO 360 general-purpose frigate became unfit for international missions and operations.

As days passed, the warship became an eyesore at a private jetty around Niger Bus Stop in Apapa Wharf and started taking in water such that successive administrations and NN leadership debated her fate. The German manufacturers were contacted and they told Nigeria it would cost five times the price of a new warship to revive NNS ARADU.

Their reason was that the ship’s technology was long outdated since it was built in 1980. They explained that the communication systems,  40/70mm Breda Bofor, 127/54mm Otomelara, Aspide/albatross missile, Otomat missile, triple tube Torpedo A244/S, multi-purpose rocket launcher cells would need to be replaced by the latest technology, for the warship to become operational.

The manufacturers also said NNS ARADU must be returned to their dock in Hamburg, Germany for proper refitting; an exercise that would cost the country millions in foreign exchange.

Though the position of the manufacturers at the time made the authorities to consider decommissioning the flagship; powerful Nigerians with a sentimental attachment to NNS ARADU opposed the move and recommended local efforts be deployed to salvage her.

Some argued that she should be converted into a training ship for young and prospective officers while others said NNS ARADU deserved a place as a national monument.

But with the ingenuity of the Chief of Naval Staff (CNS) Vice-Admiral Ibok-Ete Ibas and the can-do spirit of naval engineers at the NDL, NNS ARADU was, last year, moved to the dock where the repairs commenced with de-flooding and then re-plating the base.

To the amazement of industry players, the navy has released pictures of a successfully-refitted NNS ARADU being undocked and moved to the NNS BEECROFT jetty in Apapa.

Checks by The Nation revealed that the warship which was refitted to meet contemporary security challenges has been reclassified as an Offshore Patrol Vessel (OPV) and will resume sailing once the electronic card being expected from the original manufacturers were fitted.

According to the Flag Officer Commanding (FOC) Western Naval Command (WNC) Rear Admiral Oladele Daji, the COVID-19 pandemic slowed down works on the ship as the German manufactures suspended their operations.

“We are waiting for delivery of some electronic cards from Germany. This is because ARADU was built in 1980 and inaugurated in 1982. So, most of its technologies are outdated. We have been talking with them.

“Initially, because of COVID-19, they suspended operations but they are opening up gradually and said they need to come and see what we have done. They are the manufacturers and own these technologies. So, we do not want Intellectual Property issues.

“The good thing about the repair is that we involved classification society. We are enrolling her as an OPV not a frontline frigate anymore. Some of the armaments/missiles and capabilities that made her a frontline frigate are no longer functional. We did not replace those ones because they are very expensive and we are not fighting wars for now.

“ARADU was the first of its kind in the world. After that, there were 32 others from her class. Out of them, only ARADU and another one in Argentina Navy are still around,” he said.