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‘Operate Ajaokuta Steel On PPP Arrangement’

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Stakeholders in the steel industries have urged the Federal Government to operate Ajaokuta Steel Company on Public Private Partnership model.
Some of the stakeholders that spoke with newsmen in Abuja,  yesterday, said that government should not attempt to commercialise or privatise the steel company.
They described the Ajaokuta steel company as the major key asset that Nigerians could boast of.
However, some of the stakeholders said that government should complete the remaining two per cent of the plant and renovate the asset to have more value.
They said that it would make the PPP arrangement, commercialisation or privatisation an easier task.
The Federal Government is considering running Ajaokuta company on PPP model, private entity or outright sales.
Former National President, Iron and Steel Senior Staff Association of Nigeria, Mr Otori Saliu advised the Federal Government to erase privatisation option from its plans.
Saliu said that no privatisation had favoured or worked in Nigeria, adding that power sector that was privatised was a total failure.
He said that the steel plant was 98 per cent completed, urging the Federal Government to complete the remaining two per cent and test run the plant for few years before involving the private companies as PPP arrangement.
He said that government should invite the private company, the TP Russian, that built the plant for the completion of the remaining two per cent.
According to him, the steel company is made up of 43 different units; 40 have been completed and the three that are yet to be completed should be given to TP Russian Company to complete them.
He also suggested that government could un-bundle the units to different companies to run them while it manages the water and power units to generate funds for the company.
“Concessioning some of the units to private companies does not mean that government is not in charge; of course, government cannot operate Ajaokuta alone, but it must involve private companies.
“What government wants to do now is to commercialise uncompleted plant that will reduce the value of the plant.
“Government should, therefore, complete and operate the steel company for years before involving private companies,” he said.
National President, Nigeria Metallurgical Society, Prof. Benjamin Adewuyi said that the voice of the society was that the Federal Government should not sell the steel company in its current uncompleted position.
Adewuyi said that an uncompleted asset like Ajaokuta should not be sold because it would go as peanuts.
“Ajaokuta is remaining two per cent to be completed; governments need to complete the infrastructure and test run the company before involving private partnership as PPP arrangement.”
He alleged an India Company that the steel plant was concessioned to, cannibalised and destroyed some of the equipment in the company.
Secretary-General of the African Iron and Steel Association, Dr. Sanusi Mohammed also called on government to complete the plant to operate it for two years before involving private companies.
“The government should complete the steel plant and operate it for two years; during this period, there will be lots of interest from private companies.
“The best option is that government should run the steel plant on PPP arrangement.
Mohammed said that government should complete the external infrastructure such as road, rail and dredge the River Niger, as they were the only means the company would transport materials needed for making steel and export the finished products.
Also, Mr Isah Onobere, sole administrator of the steel company, said that the Federal Government had consulted a firm to look into best option that should be adopted on the steel company to become viable again.
Onobere said government had set up a committee to look into the option as soon as the consultant finished and submitted it suggestions.
He said that the ministries of mines and steel development; finance; Bureau of Public Enterprises (BPE), ICRC and others were in the group set up to look into the consultant’s recommendations.
The Tide source reports that the foundation laying of Ajaokuta was made in 1980 by the former President, Alhaji Shehu Shagari.
The company is located on 24,000 hectares of sprawling green-field landmass built on 800-hectares of land over three decades ago.
In 2004 and 2005, former President Olusegun Obasanjo’s administration concessioned it to Global Holding Infrastructure Limited (GHIL) an india company.
However, the Indian firm did not live up to expectations in managing the company and the government, under the late Umaru Musa Yar’Adua’s administration, revoked the contract in April, 2008.

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NSIB, AAAU Sign MoU On Air Safety Training

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As part of efforts to curb mishaps in the aviation industry, the Nigerian Safety Investigation Bureau (NSIB) has signed a Memorandum of Understanding (MoU) with the African Aviation and Aerospace University (AAAU) to deepen training on preventing and reducing accidents in Nigeria’s air transport.
Director, Public Affairs and Consumer Protection of NBIS, Mrs Bimbo Olawumi Oladeji, in a statement, said NSIB granted AAAU access to its facilities to facilitate an efficient exchange of resources and expertise.
According to the statement, the Director-General/Chief Executive Officer of NSIB, Captain Alex Badeh, who spoke at the ceremony held at the NSIB Training School, noted that the MoU sets the stage for facility sharing, capacity building, and collaboration between the Bureau and AAAU.
“I am confident that this MoU will enhance the effectiveness of our collaboration and commitment to promoting safer skies and operational excellence in the aviation industry in Nigeria and beyond”, Badeh said.
Registrar of AAAU, represented by the Director of Physical Planning and Works, Engineer Masud Aliyu Yerima, was also quoted in the statement, saying, “The journey of AAAU’s establishment and progress would have faced considerable challenges without NSIB’s generous support”.
He commended Badeh for his exemplary leadership and steadfast dedication in propelling NSIB to greater heights, and affirmed AAAU’s readiness to engage in mutually beneficial endeavours with NSIB.
“This partnership marks a significant milestone in fostering a culture of safety and excellence within Nigeria’s aviation sector, and both NSIB and AAAU are poised to leverage this synergy for the benefit of the industry and the nation at large.
“The African Aviation and Aerospace University, AAAU, is the first Pan-African university dedicated to aviation, aerospace, and environmental science.
“Addressing two critical needs within the continent’s industry, AAAU tackles the research and development gap in Africa’s aviation and aerospace sector while simultaneously cultivating a skilled workforce to propel it forward”, the statement added.

By: Corlins Walter

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Naira Rebound, Air Peace’s Expansion Deepens International Route Competition 

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he commencement of flights operations on the London route by an indegenous Carrier, Air Peace Airline, and the recovery of the local currency have sparked fresh competition on international routes.
Air Peace, Nigeria’s outstanding indigenous airline, may face a prolonged market battle with many foreign airlines with decades of experience in the industry following its entrance on the Nigeria-London route.
Some of the industry’s experts say the airline required support from the government and a strategic approach to stay competitive.
Analysts have also stated that the strategic move has garnered high praise from stakeholders in the aviation sector, considering that Nigerians were paying exorbitant prices to travel from Nigeria to London, but that sustaining this momentum will require more than just offering low prices.
On March 31, 2024, the 11-year-old airline made a bold statement with its inaugural flight, using a Boeing 777 aircraft, offering a capacity of 274 seats and carrying 260 passengers from Lagos to London.
It sold its tickets for N1.2m, a price way lower than the rates offered by most foreign airline operators plying the same route.
Just two weeks after entering the market, Air Peace’s Chief Executive Officer, Allen Onyema, complained on Arise TV that foreign airlines were undercutting prices in an attempt to push Air Peace out of the market.
Onyema said, “We are aware that there are devilish conspiracies. All of a sudden, airlines are pricing below the cost. One airline is advertising $100  and the other $350. If you peel up your entire aircraft and carry people on the wings, it is not even enough to buy fuel.
“Why are they doing that? Their government is supporting them because Nigeria has been a cash cow for everybody. The idea is to take Air Peace out, and the moment they succeed in taking Air Peace out, Nigerians will pay 20 times over. It would happen, God forbid, if they were able to take Air Peace out”.
It was gathered that an economy ticket for a flight scheduled for April 29, 2024, from Lagos to London costs about N679,375 on Ethiopian Airlines, an operator with 75 years of experience.
Air Peace priced the same ticket at N1,090,750. The difference is that on Air Peace, it will be a 6-hour non-stop flight, while on Ethiopian Airlines, it will take 16 hours with one stopover.
Last Friday, Ethiopian Airlines reduced the price of its London ticket by 0.77 per cent to N1,628,660 from  N1,641,249 two weeks ago.
In the same period, Air France’s price dropped to N1,687,824, nearly halving from last month’s N2,482,138.
On March 4, 2024, Lufthansa offered the Lagos-London route for N1,966,165. Qatar Airways provided the same ticket for N2,016,824, and KLM priced it at N2,448,740.
This continuous decline in air ticket prices was also driven by the strengthening of the naira against the US dollar and the payments of airlines’ trapped funds by the Central Bank of Nigeria.
Minister of Aviation and Aerospace Development, Festus Keyamo, had confirmed that the Federal Government, through the CBN, had cleared all the trapped funds (foreign exchange backlogs) to the tune of about $160m.
Beyond the ongoing price war, the Air Peace Chairman had also lamented the challenges with ground handling and space allocation at the London Gatwick Airport, adding that no airline has faced such obstacles before.
He noted, “On the inaugural flight out of London, 24 hours before departure, the management of Gatwick Airport moved us to another checking area instead of the designated one.
“The area they provided had a malfunctioning carousel, forcing us to manually transport luggage 50 meters away, causing delays”.

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PH Airport Users Lament Down Turn In Flight Operations 

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Users and business operators at the Port Harcourt International Airport, Omagwa, have decried the downward trend in flight operations at the airport.
Some of the users and operators told The Tide that flight operations at the airport, rather than go upward, have steadily been irregular, and diminishing steadily.
A regular air passenger of the airport, Simeon Echeonwu, in a chat with The Tide, said many airlines, both domestic and international operators, that usually operate at the Port Harcourt airport, have stopped operations, whereas others that are still operating are no longer very stable as before.
Echeonwu noted that airlines such as Aero Contractors, United Nigeria, and Green Africa airlines, now operate about one flight, twice a week, unlike before that they flew every day on Lagos and Abuja to Port Harcourt.
Also speaking, former Chairman of the FAAN Accredited Car Hires Association, Clifford Wahunoro, lamented that the down turn in Operations has affected the business of car hires.
“If you have noticed, I have not been regular at the airport for some time now, because business is no longer flowing at the airport as before. I will not fold my hands and be sitting down doing nothing, so I have to look for other things, so I come when I think there will be something.
“You can see that between 12noon and 1pm, after that segment of flights, when you have few flights arrival, many people will close for the day, and when you wait till evening, flight like Dana may come very late at night, and sometimes, it will not arrive, and by that time, many people will not like to book for commercial vehicle”, he said.
Meanwhile, a travel agent, who wished to be anoyimous, decried the rate at which the airport is going down in terms of flights operations, noting that Port Harcourt airport ought to be competing with the other major airports like Lagos and Abuja.
He queried if such was a calculated attempt to bring the airport to its kneel in terms of flight operations, while other major airports have steady flow of flight operations both for domestic and international.
TheTide observed a continuous distortions in flight movement at the airport. Some of the airlines, like Max air, which many passengers patronize, have completely stopped operations, and no new airline has been added.
Apart from the Air Peace Airline that has maintained some level of stability in operations, other few operators have been involved in either steady rescheduling of flights, cancellation and regular delay, resulting in poor and unpredictable flight movement, which affects or determine other businesses in the airport.

By: Corlins Walter

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