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Airline Owners Give Update On Threat To Shutdown Flight Operations

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Local airlines under the aegis of Airline Operators of Nigeria (AON) have suspended their threat to shut down flight operations over the outrageous hike in the price of Jet – A1 fuel.

The Vice President of AON, Mr Allen Onyema, disclosed this in a telephone interview with the News Agency of Nigeria (NAN) on Friday in Lagos.

Recall that on March 15, AON had threatened to shut down their operations on Friday, March 18, if the government could not find a lasting solution for the marketers to reduce the JET-A1 price.

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Onyema, the Chairman of Air Peace, told NAN that airlines collectively agreed to suspend the shutdown to avert further disruption in economic activities considering the key role air transportation plays in the logistic mix.

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“We are not going to shut down flight operations because discussions are ongoing between us and the relevant players in the oil and gas value chain to find a lasting solution to the problem.

“We are negatively affected by the increasing price of aviation fuel, but as patriotic investors, we will not take any action that will paralyse the economy.

“As patriotic Nigerians and investors, we will continue to engage government and its agencies on the way out of this problem,” he said.

Onyema noted that the decision taken by the local carriers was a patriotic contribution to President Muhamadu Buhari’s led administration.

According to him, the administration is presently utilising every instrument by engaging stakeholders in the oil and gas and air transportation sectors to seek a permanent solution to the price hike.

The Air Peace chairman recalled that the Buhari-led administration had contributed immensely to the development of airlines operations in the country.

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“Since the Buhari administration came on board, it has shown sufficient commitment to improving the aviation industry.

“The President signed an Executive Order that granted waivers on aircraft and its spares and other interventions, the least we could do is to continue to engage until challenges in the sector are resolved,” Onyema said.

He said the association considered very delicate the precarious situation of aviation fuel scarcity and increment in price as a development that could be exploited for political capital by players in the governance space.

Onyema, however, said the price hike was suffocating for local carriers to continue to operate flights under increasing costs regime, as they spend millions of naira to fill an aircraft with aviation fuel.

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He said airline operators were presently considering scaling down on the number of flight frequencies to minimise the cost of operations.

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Onyema said local carriers were not considering any further increase in airfares so as not to shut out ordinary Nigerians who desire to travel by air.

A NAN correspondent who monitored activities at the Murtala Muhammed Airport Terminal II (MMA2) and General Aviation Terminal (GAT) terminals, reports that airlines are working and passengers are also boarding.

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JUST IN: CBN Increases Interest Rate To 24.75%

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The Monetary Policy Committee of the Central Bank of Nigeria has today concluded its two-day meeting for March 2024.

This meeting marks the second MPC meeting for the year 2024 and also the 294th meeting of the CBN.

The MPC at the end of today’s meeting elected to hike the MPR by 200 basis points.

The Committee voted as follows: Raise the MPR by 200bps to 24.75 from 22.75 per cent
Increase the asymmetric corridor to +100bps/-300 basic points.

READ ALSO: JUST IN: CBN Sells Forex To BDCs At N1,251/$1

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Retain the Cash Reserve Ratio of Deposit Money Banks at 45 per cent and Adjust the CRR of Merchant banks from 10 per cent to 14 per cent.

The CBN retains a liquidity ratio of 13 per cent.

Details later…

 

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JUST IN: CBN Sells Forex To BDCs At N1,251/$1

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The Central Bank of Nigeria (CBN) has issued a circular to Bureau De Change (BDC) operators informing them that they sold $10,000 to each BDC at a rate of N1,251 per US dollar.

Nairametrics reports that the CBN, in a circular, instructed each BDC to sell the dollars to eligible customers at a rate not exceeding 1.5% above the purchase price.

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It reads: “We refer to our letter to you referenced TED/DIR/CON/GOM/001/071 in respect of the above subject wherein the CB approved a second tranche of sale of FX to eligible BDCs.

“We write to inform you of the sale of $10,000 to each BDC at the rate of N1,251/$1. The BDCs are to sell to eligible end users at a spread of NOT MORE THAN 1.5 per cent above the purchase price.”

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Financial Institution Launches Indigenous Micro Insurance Software To Boost Customers Confidence

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The acting Managing Director, Prudent Choice Micro Insurance, Mrs. Gloria Onosolease, has said that the launch of its indigenous micro insurance software, named Insuretech, will help boost customers confidence and ensure accountability in the sector.

She disclosed this during the official launch of its Insuretech software in Benin.

Mrs. Onosolease said the achievement will significantly shape the nascent micro insurance landscape in Nigeria and indeed, across the African continent.

Onosolease said the newly developed software heralds a pivotal advancement in enhancing customer interaction and satisfaction, while concurrently optimizing their internal operations to foster efficiency.

She added that in a fiercely competitive industry such as insurance, embracing technology is indispensable to their continuous success and sustainability.

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READ ALSO: Tips For Online Registration Of Prospective Corps Members

She said that the micro insurance sector in Nigeria, particularly in Edo State, is undergoing a phase of unprecedented growth with a population exceeding five million people where a substantial portion of which is engaged in low income and medium sized enterprises spanning rural, urban and semi-urban areas.

She said due to this, there exists an urgent demand for accessible and inclusive insurance solutions but regrettably, this demographic has long been underserved and marginalized in terms of insurance protection.

She further said that with the launch of Insuretech, it will help mitigate the financial risks encountered by low income earners and small to medium scale enterprises.

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