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Ministry Records 59 Per Cent Budget Performance

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The Ministry of Foreign Affairs has said that it has
recorded 59 per cent budget performance for 2012.

This was made known by Mr. Stephen Ocheni, Director, Finance
and Accounts, Ministry of Foreign Affairs, when the House of Representatives
Committee on Foreign Affairs paid a visit to the ministry last week in Abuja.

Ocheni said that a total of N4.2 billion was appropriated as
capital budget for the ministry’s headquarters, but that a total of N3.2
billion was released, representing 76 per cent.

He also said that a total appropriation of N211 million was
allocated to agencies supervised by the ministry, but that N33 million was
released, representing 16 per cent.

The director added that out of a total appropriation of N3
billion for missions abroad, N708 million was received, representing 38 per
cent.

“The summary of the budget performance for 2012 for Ministry
of Foreign Affairs is as follows:

“For the headquarters we have total appropriation of N4.2
billion.

“Out of this, N690 million was released for the first quarter;
for the second quarter, we have a total of N2.6 billion for ambassadorial
posting.

“Third quarter there is no release at all; then total
release to date is N3.2 billion leaving an outstanding N1.1 billion unreleased
on capital budget for the headquarters.

“That represents 76 per cent of release so far as at
Sept.30.

“For the agencies, total appropriation, N211 million; then
for the total release for the agencies stands at N33 million.

“That leaves an outstanding balance of N177 million
representing 16 per cent.

“Missions – N3 billion is the appropriation then the total
release so far, from first quarter to third quarter, is N708 million.

“This also represents 38 per cent performance.

“On the overall, we have the total performance of capital
release of 59 per cent.

“Overhead release for the ministry as at Sept. 30 is 74 per
cent; then the agencies, 72 per cent.

“Our missions’ overhead is 100 per cent as at today because
the overhead for missions are released half-yearly and the second half for the
year, for the overhead for all our missions, have been released as at last
week, except for personnel.

“Personnel is still at 50 per cent so far.’’

Ocheni added that 75 per cent of budget was received as
personnel cost for the ministry, while 58 per cent was recorded for the
agencies.

“Personnel is handled by the IPPIS in the office of the
Accountant-General of the Federation; for the headquarters, the personnel
release is 75 per cent as at Sept. 30.

“Our agencies are not under the IPPIS, so our percentage performance
of personnel for our agencies stands at 58 per cent.

“Then our missions stood at 50 per cent as at Sept. 30.

Earlier, Mrs. Nnenna Elendu-Ukeje, Chairperson, House of
Representatives Committee on Foreign Affairs, reiterated the decision of the
House of Representatives to review the budget release and implementation by the
ministry.

Elendu-Ukeje also reiterated the committee’s resolve to
ensure that areas that posing challenges were addressed.

“In a few weeks you are going to come to the National Assembly
and face us for your budget defence.

“So we want to know what it is that you have done, what it
is that we have appropriated and how far it is that you have accessed those
funds; how much use you have put them to; what have the total releases been and
has it met your expectations and so on.

“Today we decided that as the Committee on Foreign Affairs,
it was imperative that we actually feel your pulse and walk in your shoes for a
couple of hours and understand exactly what the problems are.

“Therefore, we are here to curb wastage and to ensure that
in the area where there is no wastage, we shall put our best foot forward, put
on our persuasive caps and persuade for more appropriation in that sector.

Prof. Viola Onwuliri, Minister of State (II) for Foreign
Affairs, expressed gratitude and reiterated the commitment of the ministry to
project the country’s image positively in the comity of nations.

The House of Representatives already asked for a suspension
of the presentation of the 2013 budget by President Goodluck Jonathan.

It declared last week that it had to first do a review of
the medium-term expenditure pattern ahead of the budget presentation.

There had been allegations by the House of Representatives
that the Ministry of Finance had not released up to 50 per cent of the 2012
budget as claimed.

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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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