Business
NCAA, Airlines And Payments Automation
The current imbroglio in the Nigerian aviation industry arising from automation of payment systems has pitted the Nigerian Civil Aviation Authority (NCAA) against the domestic airlines under the aegis of Airline Operators of Nigeria (AON).
The dispute arose from the deadline issued to the eight domestic airlines to automate their remittance of the statutory five per cent Ticket Sales Charge/Cargo Sales Charge (TSC/CSC) to the regulatory authority which ended on March 31.
While the NCAA insists on the immediate compliance with the directive, the airlines want it to be suspended until the parameters which constitute the charges are clearly and properly defined.
The decision to collect the charges on behalf of the NCAA was a suggestion by the airlines operators in 2001.
It was unanimously adopted and an agreement signed by all parties after series of meetings and exchange of correspondences; it was subsequently enshrined in all the subsisting regulations.
However, the remittances have become a thorny issue between both parties due to lack of transparency and flagrant refusal of some of the airlines to put the money back into the coffers of the agency.
Thus, the NCAA had on December 6, 2016 mandated the airlines to automate the process by January 1, 2017.
Mr Sam Adurogboye, the General Manager, Public Relations of NCAA, says there is a move to put an end to airlines indebtedness to the agency which currently stands at over N15 billion.
He notes that the Aviation Revenue Automation Project (ARAP) system is being introduced to ensure transparency, accurate billing and prompt payments of charges due from the airlines to the NCAA.
According to him, this is in line with the Nigerian Civil Aviation Regulations (NCARs) 2015, Vol. 2, Part 18.12.5.
“The NCARs 2015 states thus: that all domestic and international airlines operating in Nigeria should forward to the authority through an electronic platform provided by the authority, all relevant documents such as flown coupons, passenger or cargo manifest, air way bills, load sheets, clients’ service invoices and other documents necessary for accurate billing within 48 hours after each flight’’.
Adurogboye says it was pertinent to point out that this directive has the full backing of the Federal Government for full implementation and strict compliance.
However, following series of meetings between the airline operators and the Director-General of NCAA, Capt. Muhtar Usman, the deadline was extended to March 31, to give them more time to comply with the directive.
With the expiration of the deadline, the NCAA issued a final compliance notice to the airlines, warning that “failure to comply will be viewed seriously as the authority will be forced to invoke the necessary provisions of the law against defaulting airline’’.
Reacting to the ultimatum, the AON President, Capt. Nogie Meggisson, says it is done in “bad faith’’ because the issues surrounding it have yet to be resolved.
“AON has no problem with the NCAA going ahead to automate the collection and remittance of the said charges.
“However, the NCAA needs to give clarification on what constitutes the five per cent Ticket and Cargo Sales Charge.
“The five per cent TSC is only applicable on base fare in compliance with industry practice and as currently applicable to international carriers operating out of Nigeria,’’ Meggisson said.
He also accuses the NCAA of discriminating against the domestic airlines because foreign airlines are not mandated to join the same automation platform.
“It is apparent that NCAA is preying on domestic airlines which they see as an easy target, a cash cow and for cheap publicity.
“They are over regulating domestic operators and pushing domestic airlines to the edge of insolvency and bankruptcy.
“It is this kind of policy that has reduced the lifespan of Nigerian airlines and has consumed over 25 airlines in the last 30 years since deregulation in 1982,’’ he says.
According to him, in spite of the tax burden on airlines, the infrastructure and service level continue to deteriorate across all facets of the industry under the same authority.
He adds that while airlines in other West African countries operate 24 hours, Nigerian carriers are subjected to daylight operations only till 6.30 p.m. in most our airports.
Responding to Meggisson’s call for the suspension of the payment system, Adurogboye insists that the airlines must comply with the directive or risk sanctions by NCAA.
He says it is pertinent to point out that the NCAA is an autonomous regulatory agency which continues to remain solvent by cost recovery in line with ICAO Standard and Recommended Practices (SARPs).
Adurogboye says this could only be derived from the five per cent ticket and cargo sales charges statutorily.
He notes that the directive to automate covers both domestic and foreign airlines, adding that the foreign airlines have complied fully by remitting their collections through the International Air Transport Association/Billing Settlement Plan (IATA/BSP).
However, some industry watchers have appealed to both parties to amicably resolve the issue in the interest of the sector, especially as a result of its pivotal role in the socio-economic development of the country.
Asowata is of the News Agency of Nigeria (NAN)
Solomon Asowata
Business
Food Vendors, Others Relocate To New Site At PH Airport
The raging controversy between the Port Harcourt International Airport Management and restaurants/canteen operators and theirallies over relocation has been brought under control, as the operators have commenced relocation to their structures at the new site.
Recall that there had been serious feud over a directive by the Manager of the airport, Mr. Michael Area, for food vendors and their allies to relocate to the new site.
They insisted that the new site was too distant and hence, would negatively affect patronage from customers, with possible loss.
They further also insisted that it wouldcost them much money to put up another structure, given the economic situation in the country, since the airport management did not build any structure for them, apart from providing the empty land they have to also pay for.
The situation had led to flexing of muscles, which made the Airport Manager to order for sealing of all shops, resulting in scarcity of food, as airport users could not find a place to eat, apart from the only Genesis fast food spot available.
As at last Friday, The Tide observed that most of the food vendors had transferred their structures to the new place, and had started doing business there already.
Meanwhile, customers have started settling down at the new location as they were seen patronising shops for foods and drinks, in spite of the distance.
Few of the remaining structures at the old site, The Tide further gathered, will also be removed as quickly as possible, and the owners are making efforts to get funds for the job to be done.
One of them, Mrs Aka Love explained that she was going to relocate to the new place before the end of March.
Currently, business activities at the old site have come to null, as the place which was usually a beehive of food, drinks and relaxation, has completely winded down.
By: Corlins Walter
Business
MOWCA Strengthens Maritime Crime Prevention
Secretary General of the Maritime Organisation of West and Central Africa (MOWCA), Dr. Paul Adalikwu, has stepped up interaction with the United States Government to lift restrictions placed on some member countries allegedly implicated in illicit shipping activities.
Adalikwu, who led a delegation from the MOWCA Secretariat to the US Embassy in Abidjan for a first leg of the strategic consultation aimed at promoting seamless participation of MOWCA countries in international trade within the global maritime space, reiterated the organisation’s commitment to the best ethical and lawful maritime practices.
Addressing the U.S Ambassador to Côte d’Ivoire, H.E Mrs Jessica Davis Ba, the MOWCA SG stated the organisation’s interest in promoting the International Ship and Port facility Security (ISPS) code which aims at enhancing security of vessels and their ports of call.
He expressed the commitment of MOWCA in promoting environmentally friendly, safe and cost effective shipping without any encumbrance that may limit the economic potential of member countries.
Dr Adalikwu recalled that at the instance of the U.S. Department of State invitation, MOWCA participated in the 2023 Registry Information Sharing Compact (RISC) Conference in Larnaca, Cyprus, on February 28–March 1, 2023, and a virtual meeting held on June 6 2023, with Mrs Jennifer Chalmers, Officer in change of Counterproliferation Initiative.
He recalled The U.S. DOS willingness to support MOWCA’s effort for preventive maritime security through the establishment of the Center for Information and Communication (CINFOCOM) with the aim to ensure a maritime situational awareness domain within MOWCA’s member states’ waters.
He added that MOWCA under his watch is committed to training and retraining of maritime practitioners and experts to enhance the human capital capabilities of member states.
The CINFOCOM will help prevent transnational crimes committed at sea like sanctions evasion by North Korea and other state actors, who exploit poor enforcement due diligence by ship open registries to circumvent United Nations and U.S. trade restrictions.
By: Nkpemenyie Mcdominic, Lagos
Business
Nigeria’s Public Debt Hits N97.3trn – DMO
The Debt Management Office (DMO) has hinted that Nigeria’s public debt increased by 10.7 per cent from N87.87 trillion in the third quarter of last year, to N97.34 trillion as at December 31, 2023.
DMO, in an update data released last Friday, said the increase in the debt stock was largely due to new domestic borrowing by the Federal Government to part finance the deficit in the 2024 Appropriation Act and disbursements by multilateral and bilateral lenders.
The office noted that the N97.3 trillion public debt comprises of domestic debt of N59.12 trillion and external debt of N38.22 trillion. The sum of $3.5 billion was used to service external debt during the review period.
“Nigeria’s Public Debt Stock as at December 31, 2023 was N97.34trillion or $108.229 billion. This amount comprises the domestic and external debt stocks of the Federal Government of Nigeria (FGN), the 36 States Governments, and the Federal Capital Territory (FCT).
“There was an increase of N9.43 trillion over the comparative figure for September, 2023, which was largely due to new domestic borrowing by the FGN to part finance the deficit in the 2024 Appropriation Act and disbursements by multilateral and bilateral lenders.
“At N59.12 trillion, total domestic debt accounted for 61 percent of the total public debt stock, while external debt at N38.22 trillion accounted for the balance of 39 percent.
“Consistent with the debt management strategy, Nigeria’s external debt stock was skewed in favour of loans from multilateral (49.77 percent) and bilateral lenders (14.02 percent) or total of 63.79 percent which are mostly concessional and semi-concessional.
“Whilst the DMO continues to employ best practice in public debt management, the recent and on-going efforts of the fiscal authorities to shore up revenue will support debt sustainability”, DMO stated.
By: Corlins Walter
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