The Nation Newspaper

Tag: Minister of Aviation

  • Deziani: Oduah advises FG to follow due process

    Deziani: Oduah advises FG to follow due process

    A member of the National Assembly, Sen. Stella Oduah, has urged the Federal Government to follow due process in investigating and prosecuting corruption allegations against former Petroleum Minister, Deziani Alison-Madueke.

    She made the call when she featured on the News Agency of Nigeria (NAN) Forum in Abuja.

    Oduah, a former Minister of Aviation, said that Alison-Madueke should be tried in the court and be convicted before the seizure of her property.

    “We have laws in this country. We have processes and policies on how things ought to be done. If we are law-abiding, then we must do things according to the law.

    “Anything outside that is going to be illegal, in my own view.’’

    A Federal High Court in Lagos had on Aug. 28 ordered the final forfeiture of N7.6 billion being alleged loot recovered from Alison-Madueke.

    The court fixed Sept. 22 to hear the application for the final forfeiture of four properties valued at N2.6 billion, linked to Allison-Madueke and her associates.

    The properties are located in Lagos and Rivers as well as the Federal Capital Territory (FCT).

    The Economic and Financial Crimes Commission (EFCC) had filed the application seeking to have the former minister’s properties finally forfeited to the Federal Government.

    Oduah, who is the Vice Chairman, Senate Committee on Women Affairs, also said that alleged corruption against the Nigerian Police would be visited by the National Assembly after its recess. (NAN)

  • Reps Summon Minister, NCAA, Ethiopian Airlines, over stranded passengers

    Reps Summon Minister, NCAA, Ethiopian Airlines, over stranded passengers

    The House of Representatives Wednesday mandated its committee on Aviation to invite the Minister of Aviation, Nigeria Civil Aviation Authority (NCAA) and Ethiopian Airlines to appear before and give reasons for the excessive delays in bringing back Nigerians stranded in Saudi Arabia

    The Green Chamber flayed the airline for the recent long delays and disrespectful behavior towards Nigerians and other nationals from Saudi Arabia to Nigeria by the Airlines and said flight delay compensation be paid to them according to global aviation rules.

    The resolution of the House was sequel to the adoption of the prayers of a motion by Hon. Zakari Mohammed on complaints against Ethiopian Airlines.

    The lawmaker while moving the motion noted that Ethiopian Airlines due to the backlog of delays have left Nigerians stranded in Jeddah for over one week with most running out of funds to survive.

    He said the airline’s refusal to offer a reasonable explanation for the delay was worrisome, and also in violation of Article 2 of Ethiopian Airlines passenger commitment.

    According to him, it made reservations for three persons to occupy one hotel room in overnight delays again, in violation of Article 11 of the Ethiopian Airlines passenger commitment published on their website.

    He said passengers had to incur more expenses by making hotel reservations for themselves. due to the inconveniences caused by the airline,

    Mohammed also said over one thousand Nigerians who were due to be back in the country on 27 June, 2017 were stranded in Jeddah for 4-5 days.

    The House thereafter mandated its committee on Aviation to invite the Minister of Aviation, Nigeria Civil Aviation Authority (NCAA) and Ethiopian Airlines to appear before and give reasons for the excessive delays.

    The House also resolved that Ethiopian Airlines should apologize through two national dailies, to the affected passengers.

  • Senate to summon aviation minister over foreign airlines

    Senate to summon aviation minister over foreign airlines

    The Senate said Monday that it has concluded arrangements to invite Minister of Aviation, Senator Hadi Serika over the departure of some foreign airlines from the country.

    Chairman, Senate Committee on Aviation, Senator Adamu Aliero, disclosed this after a maiden meeting between the committee and agencies under Ministry of Aviation in Abuja.

    Aliero said that the focus of the parley would be to seek ways and means of find lasting solutions to the problems confronting the aviation sector.

    The Committee chairman noted that the acute shortage of aviation fuel in the country that led to some foreign airlines shutting down operations is a problem that could be resolved by the Federal Government.

    Aliero said that it was embarrassing to find local and foreign airlines sourcing aviation fuel from neighbouring countries even when Nigeria is an oil producing country.

    On funding challenges, Aliero said that the National Assembly will work to amend laws to make it convenient to repatriate funds owed by airlines to the coffers of the Federal Government.

    The Kebbi Central lawmaker noted that for the aviation industry to thrive there was the need to unbundle the sector.

    Unbundling the sector, he said would shore up its revenue profile.

    Aliero said: “From what the committee was made to understand, the most major problem faced by foreign airlines is aviation fuel which is a major problem in Nigeria. In spite of Nigeria being an oil producing country, it is embarrassing that airlines get their products from neighbouring countries.

    “As regards repatriation of funds, it is more of a constitutional problem. We will look at ways of fine tuning the constitution so as to make it possible for airlines to remit funds owed government.

    “There is also the need to unbundle the aviation sector. We are of the opinion that if this is done, the operations of the sector will be liberalized. That will go a long way to boosting revenue generation.

    “So, these are the issues, and since these problems exist, we will invite the Aviation Minister so we can find lasting solutions to them.”

    A member of the committee, Senator Bala Ibn Na’Allah, also called for the unbundling of the aviation sector.

    Na’Allah noted that the challenges facing the aviation sector makes it imperative for relevant agencies to re-evaluate their policies going forward.

    He said, “We are all aware where we are. With the economy, and we are aware how much the aviation sector can generate for the country.

    “We must think of unbundling the aviation sector. We have unreasonably overburdened ourselves. If what we have tried in the past has not worked, is it not time to re-evaluate our policies for the aviation sector? We must change our way of doing things. We have to do that at this point because we have no option, so we can move the industry forward.”

    Na’ Allah, who also called for the liberalization of flying under the Nigerian Law, said that the development continually hinders Nigerian pilots from competing for international jobs with their foreign counterparts.

    The Kebbi South lawmaker noted that pilots and aeronautical engineers trained in the country are unfit for employment as a result of the unavailability of aircrafts to practicalise already acquired knowledge.

    Mr. Femi Ogunode who represented the Managing Director of the Federal Airports Authority of Nigeria, lamented the reduction in passenger traffic.

    Ogunode said that “airlines in the country are leaving Nigeria”.

    On his part, Managing Director, Nigerian Airspace Management Agency (NAMA), Engr Emma Anasi, said that airlines operating in the country were unable to repatriate the stipulated five percent revenue to the Federal Government due to the unavailability of foreign exchange needed to do so.

    Anasi noted that though the airlines had insisted on making payments in naira equivalent, constitutional provisions forbids the Agency from accepting their request.

    He asked the National Assembly to intervene by amending the relevant laws in this regard.

  • Domestic operators forward challenges to government

    • As Minister assures of access to foreign exchange

    Domestic operators under the Airline Operators of Nigeria (AON), on Thursday listed challenges affecting their business to the Minister of Aviation, Senator Hadi Sirika.

    The challenges, according to the  its Chairman, Captain Nogie Meggison  include; constraints of access to  foreign exchange; availability, pricing and distribution of aviation fuel; taxes on importation of aircraft  and its spare parts; multiple taxes; obsolete airport and air navigation infrastructure as well as hurdles associated with 24 hours Customs clearance for aircraft spares on the ground.

    The operators said it has become  imperative to address these issues to ensure the survival of the business, even as they met  held a meeting with Sirika in Abuja on how the government  could resolve the myriad of challenges in the sector.

    In a paper titled: “Airline Of Nigeria Critical Points To the Minister Of State Aviation,” Meggison, said they decided to draw  the problems to the government’s attention before they  embark on any action  that could paralyse the economy.

    Meggison said the meeting with Sirika in Abuja became imperative as domestic carriers could  no longer cope with the challenges threatening their investment in the sector.

    Minister of State for Aviation, Senator Hadi Sirika has pledged his commitment to work closely with Airline Operators of Nigeria (AON) and has taken bold steps to address the challenges being faced by domestic airlines in the country. Sirika made the commitment when he metwith members of AON on Monday June 6, 2016 to discuss their concerns and highlight the many challenges affecting their businesses which bother on safe flight operations.

    Minister of State for Aviation, Senator Hadi Sirika has pledged his commitment to work closely with Airline Operators of Nigeria (AON) and has taken bold steps to address the challenges being faced by domestic airlines in the country. Sirika made the commitment when he met with members of AON on Monday June 6, 2016 to discuss their concerns and highlight the many challenges affecting their businesses which bother on safe flight operations.

    The Minister assured operators that he was not oblivious of their plight and challenges. “The players in the industry are known. Their challenges are also known, at least to me. And I am trying and working hard to drive this through government for government to understand them,” he said. “Our primary purpose in government and my duty.

    Meggison said: “There are five major challenges facing domestic airlines include constraints to foreign exchange (Forex) access; availability, pricing and distribution of Jet A1; Taxes on importation of aircraft and its spare parts as well as other multiple taxes including Value Added Tax ; obsolete infrastructure; upgrade of airport runways for 24 hours operations with navigational and landing aids; as well as 24hours customs clearance of spare parts for aircraft on ground (AOG) among others.”

    On the issue of Forex to domestic airlines, Sirika noted: “It’s common sense that you buy your airplane in hard currency, you maintain the airplane in hard currency, you buy the spares in hard currency, and even the fuel at some point is purchased in hard currency.

    So you must be able to access hard currency to operate as an airline.”

    As a way out of the problem, Sirika  led a delegation of AON members to the Central Bank, where its  Governor pledged to make available a window for domestic carriers to access foreign exchange.

    The CBN Governor therefore pledged to include aviation on the priority list in an effort to support domestic airlines’ safety and their operations.

    On the problem of aviation fuel, the Minister said he had met with the Minister of State for Petroleum Resources who assured  that they would try to get Port Harcourt refinery on-stream before the end of the year to begin to refining of  Jet A1 otherwise known as aviation fuel.

    He assured that with some investment, the Kaduna Refinery will be back on-stream to make aviation fuel available.

    “We are committed to it, we will begin to produce it and if there is anything we can do to bring down the price we will do so. The whole essence of refining it locally is not only to make it available, but it will also make it cheaper. Because then the element of importation is removed,” Sirika assured.

    Concerning  direct distribution of Jet A1 to the airports, the Minister said government is working on alternate plans to ensure that aviation fuel supply is factored into the concession arrangement.

    “We can cause the concessionaire to ensure that the infrastructure is developed around those airports, especially that of Lagos, Port Harcourt, Abuja and Kano,” he said.

    With regard to taxes on aircraft and spare parts, the Minister observed that while the Ministry of Finance holds the position that  there should be no duty on aircraft and spare parts, the Nigeria Customs thinks that the waiver is only on aircraft itself and not on the spares.

    To this end, the Minister  led a  3-man delegation from AON to visit the Comptroller General (CGC) of Customs to find a meeting point of getting a clear interpretation of the Importation Act, as a way of assisting domestic airlines.

    “It is the spares that we are more interested in because they are the consumables. The life of an airplane might consume in terms of price money more spares than the actual cost of the airplane; so it ought to be the two,” Sirika noted.

    The Customs  boss said he will  look  into the issue of a 24 hours clearance of spares for Aircraft on Ground (AOG).

    Commenting to a closer working relationship with AON, the Minister said; “Aviation will contribute to the creation of wealth and it is contributing at the moment. But the relationship between AON and us will ensure that the wealth is improved until the contribution of aviation has gone up significantly to 15 per cent  contribution to the GDP. This is something that we must agree on and something that we have to work together to achieve.”

  • Stakeholders set agenda for would-be minister

    Stakeholders set agenda for would-be minister

    Stakeholders have set agenda for the would-be Minister of Aviation, asking that the remodelling of airports initiated by the former Minister, Princess Stella Oduah, be completed.

    The stakeholders, among whom are airline operators, aircraft engineers and concessionaires, told The Nation that damage would be done to the sector, if the projects are abandoned.

    The projects include the building of 11 terminals in the second phase of the airport remodelling; five international airport passenger terminals being built by Chinese Civil Engineering Construction Company (CCECC) and the construction of 11 perishable cargo terminals.

    An Airport Concessionaire with the Federal Airports Authority of Nigeria (FAAN), Mrs Adeola Omikunle, said investors were worried over what would become of the infrastructure projects initiated by the former minister, if they were not sustained.

    She said: “The best thing that the next minister should do is to ensure the completion of on-going projects, including airport terminals, air navigation equipment upgrade, the aviation master plan, the organised template designed for airport concessions, the increased investor confidence and other projects initiated by Princess Oduah, adding that it is the best way the government could reposition the sector.

    An aircraft engineer, Fred Bulus, said the legacies of the former minister should be sustained by her successor, whom he said must ensure that the five modern international passenger terminals being constructed simultaneously in Lagos, Abuja, Port Harcourt, Kano and Enugu are completed.

    He said over 20,000 jobs have been created in the sector in the past two- and- a-half years as a result of the on-going construction works in the sector, stressing that these laudable programmes must be sustained in order not to retard the tremendous progress already recorded in the sector.

    The Executive Director, Centre for Aviation Safety and Research, Sheri Kyari also urged that whoever takes over from Princess Oduah should complete her projects.

  • How bank financed N255m bulletproof cars, 54 others

    How bank financed N255m bulletproof cars, 54 others

    The controversial bulletproof cars allegedly bought for the Minister of Aviation may be the costliest ever bought by any government official in Nigeria, it emerged yesterday.

    Besides, The Nation obtained details of the transaction.

    In 2012, the President and the Vice President spent N280 million on four bulletproof vehicles for the presidential fleet. The Ministry of Aviation is alleged to have spent N255 million on two armoured BMW cars for the minister.

    Aside this, it was gathered that the Nigerian Civil Aviation Authority (NCAA) will be paying 19 per cent cumulative interest to First Bank, which financed the cars and 54 other “operational vehicles”.

    It is estimated that the bank stands to make about N122.170m from the deal spread over three years.

    According to the breakdown of the 2012 budget, what the Presidency was authorised to spend under “replacement of aged vehicles of the presidential ground fleet (PGF)” was N280 million in 2012 for the acquision of four bulletproof vehicles for the president and the vice president.

    The budget proposed for the “procurement of treated (bulletproof) Mercedes Benz saloon 600 E Guard for use by the President and Vice President @ N140,000,000 each.”

    That year, the Presidency spent N356,724,300 to replace aged vehicles belonging to the presidential ground fleet.

    The Presidency acquired “five Mercedes Benz saloon 350 (semi plain/partial bullet proof) at N25,000,000 each, 10 jeeps (assorted – Range Rover, Prado and Land Cruiser) at N10,000,000 each and procurement of accessories and maintenance equipment for guard vehicles at N25,000,000.”

    A source explained the price difference for the armoured vehicles. He said: “It is not a car you buy across the shelf. It is a customised vehicle and any customised product is not something that you can see in the competitive market. It is based on the negotiation of the person that is buying. It is based on the agreed specification between the two of you that will determine the price.”

    The source cleared his agency of any financial irregularities, saying “we are not involved in that because our own is to finance the loan. So if the person who is getting the loan is satisfied with the price, that is when you are submitting back to us.”

    Three banks were initially shortlisted for the transaction. They are Stanbic IBTC, Union Bank and First Bank. Thereafter a letter “conveying the approval of the honourable Minister of Aviation for the engagement of First bank based on competitive proposal was sent to us,” the source said, pleading not to be named because he is not permitted to talk to the media.

    The government agency that negotiated the terms of the loan required to buy the cars gave the banks 90 per cent all inclusive terms, 18 per cent interest and then 0.5 per cent management fees to be charged by the bank.

    Thereafter, the car dealers, the source said, sent their invoices. Metropolitan Motors was to supply 54 vehicles. Coscharis supplied the two armoured vehicles. First bank paid the money directly to Metropolitan and Coscharis. Coscharis was paid in August. Metropolitan got its cash in September.

    Reminded that the agency spent more than what it got approval for, the source said “well, the answer is that the budgetary allocations for 2013 for this operational vehicle is N240 million for the total cars they bought, that is why they used this auto loan instrumental payment arrangement”.

    “The total amount for all the 56 cars is N643 million, but the impact for the first year is about N139 million, so that is why we are saying they did not spend above the budgetary allowance that the House approved, which is N240 million. So they are still working within that because they are not paying the whole money. Next year, they will get another allocation, so they will still pay from it. So that is it. It is rolled over for 36 month” he said.