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Aviation 2020: A Battle For Survival 

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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

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33 Banks Raise N4.65tn As Recapitalisation Ends

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The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.

The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.

The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.

The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”

The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.

Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”

It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.

The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.

“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.

“All banks remain fully operational, ensuring continued access to banking services for customers.”

The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.

It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.

The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.

The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.

To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.

It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.

“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.

The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.

Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.

The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.

However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.

The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.

 

 

 

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SMEs Dev: Firms Launch N100m Loan Scheme 

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The Coalition of Microlending and Cooperative Institutions in Nigeria (COMCIN), the umbrella body of non-bank microfinance institutions and cooperative societies in Nigeria, in partnership with NEAT Microcredit, has unveiled a N100 million joint loan facility aimed at supporting small and medium-scale enterprises (SMEs) across the country.

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.

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Yenagoa’s Radisson Hotel Ready  December   — NCDMB, Other 

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The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, has expressed confidence that the five-star Radisson Hotel and Conference Centre, Yenagoa, Bayelsa State, would be completed and commissioned this December .
He said this while addressing visiting top executives of Edison Corporation  and Megastar Technical and construction company at the conclusion of a one-day project management tour and workshop at the headquarters of the Nigerian Content Tower (NCT), Yenagoa, weekend.
The Board in a statement from the Directorate of Corporate Communications said  all other stakeholder assured of the delivery of world-class services in the hotel upon it’s completion.
Ogbe described the hospitality facility as a top priority project of the Board whose progress he would be following up every day and week.
“This project is critical to the Board, critical to Yenagoa, Bayelsa State and Nigeria. With this hotel becoming functional at the end of the year, I believe there will be tourism in Bayelsa State, and that’s one of my dreams.
“When I took up this job as Executive Secretary in December 2024 I said I must make this hotel work”, the NCDMB boss said.
He commended the team from Edison Corporation and the project contractor, Megastar Technical and Construction Company, for the quality and pace of work, adding “much is required from the Management to meet up the schedule delivery
“Most of the critical aspects of the project have been resolved in terms of mark-up room, scope of work in terms of financing and contracting strategies”
The Board’s  Scribe said he was sure all hands would be on deck to ensure that work proceeds unhampered.
In his remarks, the Chief Executive Officer of Edison Corporation, Mr. Vivian Reddy, said the team from Edison Hotel Group was very excited to come into a contractual arrangement with NCDMB, assuring the project will put the city on the world map.
“What is so important with the group Radisson International is that, if anyone around the world looks for Radisson Yenagoa, they will see this place pop up, and it’s going to help to uplift the area in terms of visitors and tourism.
“Our role is to make sure we deliver a world-class quality hotel from start to finish. We will open the hotel, we’ll furnish it. We’re working with the main contractor to make sure the facility meets world-class standards”, he said.
Speaking on the sealing of the contractual deal with the NCDMB, he noted it took great efforts, saying “getting Radisson in the agreement was not easy, and it took several months and cumulative one and a half years of discussions and documentation”.
The Edison boss, who is reputed to be the first South African businessman to lead a high-level business delegation from that country to Nigeria during the tenure of President Thabo Mbeki in 1999, was full of commendation for the NCDMB boss, describing him as “a great and visionary leader”.
“The vision and dream of the Executive Secretary of the NCDMB are going to become a reality.  We’re going to help him and make it a reality and it’s going to be the best hotel in this region”, the   boss noted.
Mr Reddy also commended the project contractors and professional teams involved, stating that his team has every confidence in their technical competence.
By: Ariwera Ibibo-Howells, Yenagoa
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