Business
Aviation 2020: A Battle For Survival
The Nigerian aviation sector in 2020 could be likened to a town ravaged by war with wanton destruction of lives, infrastructure and economy, that will take some time to rebuild. Although the sector started on a good footing in the beginning of the year, the outbreak of the Coronavirus pandemic in the first quarter of 2020 caused the industry an unimaginable setback.
The Coronavirus pandemic, otherwise known as COVID-19, came like a flood, which suddenly broke down all facets of operations in an already flourishing sector, leaving negative imprints that stakeholders are still battling to tackle.
Prior to the outbreak of COVID-19, the Nigerian aviation industry was in steady throttle, ranging from the certification of Abuja and Lagos airports, and the move to also certify the Port Harcourt International Airport and others.
Also, in the later part of 2018, the international terminal of the Port Harcourt Airport was commissioned, and the reconstruction work on the runway of the Akanu Ibiam International Airport, Enugu was awar-ded in August, 2019, all geared towards full operations in 2020.
Generally, the aviation sector in the country was full of activities, with efforts being made to upgrade infrastructure in most of the major airports in the country. From January to the middle of March, airports became a beehive of activities, while travelling by air became the delight of many Nigerians, especially when compared with road transportation that has almost become a nightmare due to deplorable roads and general insecurity.
But that was how far the aviation sector could go in 2020. The once bubling sector suddenly began to witness a terrible downturn in operations as soon as the COVID-19 started to rear its ugly head. The total closure of all the nation’s airports for a period of about six months by the Federal Government in an effort to check the spread of the pandemic was the climax of the misfortune in the aviation industry.
Although all the nation’s major airports are now open to operations, there is still a lull in the activities of airlines.
The Managing Director of the Federal Airports Authority of Nigeria (FAAN) Capt. Rabiu Yadudu, in the build up to the reopening of the nation’s airports, in line with the agency’s core values of safety, security and comfort of passengers, held a Skype meeting with Munich Airport International to share experience and compare notes on the effects of the COVID-19 lock-down on the airports.
The aim was to assess the readiness of FAAN to gradually begin operations, following the Federal Government’s directive for reopening of the four regional airports.
The FAAN boss said, “While FAAN is responding to the guidelines set by the NCAA for gradual airport reopening during the COVID-19 pandemic period, it is important to also compare notes with other airports in the world to make sure that we are on the right track, and join the global industry in building back travel confidence.
“Munich Airport has successfully reopened it’s airport and has recommended domestic and international flights, so it is worth sharing their experience with them”, Yadudu said.
Though there are guidelines issued by the International Civil Aviation Organisation (ICAO) and Airports Council International (ACI), for the purpose of reopening, the guidelines would become more successful if they are adopted based on the peculiarities of the airport environment.
At the Port Harcourt International Airport, for instance, the reopening for flight operations was greeted with numerous challenges, as many restrictions and procedures were introduced, thus raising a lot of dust and questions among stakeholders and airport users.
The negative effects of COVID-19 on airline operations brought about the issue of difficulty in the payment of staff salaries by the airlines. The maintenance of aircrafts became a major challenge with threats of sack of workers still in contention.
FAAN is not exempted. The Authority is battling with the payment of its staff salaries, which was quite unusual in the history of the agency. This has even led to a pocket of protests by its workers.
In one of the interviews granted to The Tide by the FAAN’s Head of Public Affairs at the Port Harcourt International Airport, Mr Kunle Akinbode, he admitted that lack of funds made individuals, including staff of FAAN, to contribute money for the procurement of items required to meet the COVID-19 standard protocol for the reopening of the airport.
The situation also made the airport authority to look inward to reconsider its system of revenue drive, which led to the unusual constitution of a revenue committee to recover monies being owed FAAN.
Akinbode, in the interview, said that there had been airlines that owed FAAN, but did not pay before liquidation, adding that FAAN had decided to wake up.
“FAAN had been relaxing in the collection of debts. These concessionaires look at FAAN with the idea that it is government business, so we have decided to wake up, maybe because of pressure from COVID-19”, he said.
Looking at the turn of events in the aviation industry in the country in the last one year, compared to the previous years, it is obvious that the sector faired roughly in 2020.
The concessionaires and airlines now go through tough times in operations, as cost of maintenance, repairs and overhaul of aircrafts are in hard currency, with the value of naira continuously depreciating against the dollar.
Rather than employing, airlines are contemplating retrenchment of workers; rather than acquiring more fleets of aircrafts, airlines are battling with aircrafts maintenance and how to settle the debts owed FAAN, obviously due to paucity of funds.
This informs why the airlines have jacked up their flight ticket prices by 300 per cent within the last two months in order to cushion the effects of almost six months of non operation.
There is no gainsaying the fact that 2020 is one of the worst years for the Aviation sector, no thanks to the Coron-avirus pandemic. The situation will, therefore, require proactive steps and efforts on the part of both the government and airline operators to reinvigorate the sector. Such steps will include granting bail-out to airlines by the government, and if inevitable, a merger of some airlines to save them from total collapse.
By: Corlins Walter
Business
SMEs Dev: Firms Launch N100m Loan Scheme
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
Business
Yenagoa’s Radisson Hotel Ready December — NCDMB, Other
Business
RIRS Sets Tomorrow As Deadline For Individual Tax Returns Filing
-
Opinion2 days ago
Ozoro Festival: Tradition or Tyranny?
-
News3 days agoRSG Reiterates Commitment To Youth Dev
-
Oil & Energy3 days agoTranscorp Energy, Renewvia Partner On Renewable Energy Gap
-
Politics2 days ago
RIVERS WOMEN RALLY SUPPORT, CONTINUOUS PRAYERS FOR TINUBU
-
Politics2 days ago
AKPABIO, DIRI, OBOREVWORI, OTHERS VOW TO REELECT TINUBU …AS GIADOM RETAINS APC ZONAL CHAIR
-
Business3 days agoNSCDC Discloses Illegal Dump Site In Ikwerre Community
-
Politics2 days ago
Viral 2027 Nomination Forms Price List Fake, Misleading – APC
-
Business3 days agoYenagoa’s Radisson Hotel Ready December — NCDMB, Other
