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Aviation workers threaten nationwide protest over unpaid ticket sales charges

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Nigeria’s aviation workers have issued a fresh seven-day ultimatum to airline operators and other organisations that have failed to remit the statutory five per cent Ticket Sales Charge (TSC), warning that they will embark on nationwide picketing if the outstanding debts are not settled.

The notice, jointly issued by the Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) and the National Union of Air Transport Employees (NUATE), follows the expiration of an earlier 14-day ultimatum served on 8 July, which lapsed on 23 July without compliance from the affected operators.

The five per cent Ticket Sales Charge is a statutory levy imposed on every airline ticket sold in Nigeria. The proceeds are remitted to the Nigeria Civil Aviation Authority (NCAA) and shared among aviation agencies to fund regulatory oversight, safety, security and other statutory responsibilities.

The latest warning comes months after airline operators announced they would no longer collect and remit the five per cent Ticket Sales Charge on behalf of the NCAA, arguing that the arrangement had become unsustainable. PREMIUM TIMES reported at the time that the decision raised concerns over the funding of aviation agencies and the future administration of the statutory levy.

In a statement jointly signed by ATSSSAN General Secretary, Frances Akinjole, and NUATE Deputy General Secretary, Odinaka Igbokwe, the unions accused defaulting operators of failing to remit the charges despite repeated warnings.

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“Our earlier 14-day ultimatum has expired, and regrettably, willful non-compliance has been recorded,” the unions said.

According to them, the continued failure to remit the statutory deductions is depriving aviation agencies of funds required to carry out their responsibilities effectively.

“The aviation agencies remain starved of the required funds to keep our skies safe, while the conditions of service of our members in the various agencies continue to be jeopardised because of the non-remittance of the Ticket Sales Charge,” the statement added.

The unions argued that the prolonged withholding of the funds has weakened the financial capacity of the agencies and adversely affected workers’ welfare.

They warned that the situation could ultimately pose risks to aviation safety and security.

“This unnecessary demotivation factor to the air transport worker is a security and safety risk,” they said.

Declaring that they could no longer remain passive, the unions issued what they described as a final seven-day notice to all defaulting airline operators and other indebted organisations.

READ ALSO: NCAA threatens sanctions as Royal Air Maroc allegedly defies regulatory authority

“We can no longer helplessly fold our hands and allow the safety of our airspace to remain compromised,” the statement said.

It added: “We hereby issue a seven-day notice to every TSC defaulter to remit the total debt owed to the agencies. Failure to do so will result in our unions taking concrete actions at their various premises.”

If the dispute remains unresolved after the expiration of the ultimatum, the planned picketing could disrupt airline operations and other aviation activities nationwide, adding to recent operational challenges in the sector.
Neither the Airline Operators of Nigeria (AON) nor the NCAA had publicly responded to the unions’ latest ultimatum as of the time of filing this report.


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Dangote to sell 30% shareholding of new refinery to East African countries – Report

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Dangote Group, the empire of Africa’s richest man Aliko Dangote, has offered a 30 per cent holding in its proposed 700,000 barrel-per-day (bpd) refinery to nations in East Africa, the region where the mega crude-processing plant is to be located, Bloomberg reported Friday.

Kenya, where the new refinery will be sited at the southeastern coastal town of Lamu, will take a 10 per cent stake estimated at around half a trillion dollars, David Ndii, a top economic adviser of President Ruto, told Bloomberg.

“The total for the region is about $1.5 billion. I don’t actually see a challenge in doing that, and if some of them are not off-taking we will backstop,” Mr Ndii was quoted as saying at a capital market conference in Nairobi on Thursday.

Ethiopia and Rwanda are said to have indicated willingness to participate.

Mr Dangote is turning to business-friendly Kenya and other promising markets in East Africa to expand his multi-billion dollar empire after facing an avalanche of resistance from his home country Nigeria in bringing a refinery of similar capacity to completion.

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The Nigerian refinery, situated in the outskirts of Lagos and initially projected to be completed in 2016, did not see the light of the day until eight years after, held back by logistic delay, infrastructure constraints and COVID-19 lockdowns.

The magnate, who has built his fortune around cement, sugar and a couple of fast-moving consumer products, accused international oil companies of sabotaging efforts at getting the refinery running seamlessly in its early days.

He claimed that the Nigerian Midstream and Downstream Petroleum Regulatory Authority, which serves as the top watchdog for the midstream and downstream segments of the oil industry, issued new licences to some players to import “dirty fuel” as part of a broader conspiracy to frustrate his push to wean Nigeria off its longstanding dependency on fuel imports.

In the heat of the crisis, Farouk Ahmed, the CEO of the regulator at the time, resigned his appointment, while Mele Kyari, the immediate past managing director of state oil company NNPC Limited, whom Mr Dangote accused of surreptitiously running a fuel blending plant off the coast of Malta, was shown the exit door.

“I knew there would be a fight. But I didn’t know that the mafia in oil, they are stronger than the mafia in drugs,” he told an investment conference in June 2024.

ALSO READ: Dangote Refinery raises $2.5 billion in Africa’s largest private equity placement

A private placement, which raised $2.5 billion ahead of the Nigerian refinery’s planned $5 billion initial public offer scheduled for October, valued the refinery at $40 billion.

The private equity capital raise was 3.7 times, drawing interest from African institutional investors and institutional investors from outside the continent.
The groundbreaking of the Kenyan refinery is expected to kick off next month.

That puts the company on course to achieve the ambition of doubling its refining capacity to 1.4 million bpd in the next three years, with processing capacity at the refinery in Lagos already upped to 700,000 bpd from its original 650,000 bpd.

The planned refinery in Kenya is expected to cost $15 billion to $17 billion.


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Sanwo-Olu Sets Fresh Agenda to End Blackouts, as Lagos Targets 3,500MW Power Supply

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The Governor of Lagos State, Mr. Babajide Sanwo-Olu, has reaffirmed his administration’s commitment to ending the persistent blackout and aim for a twenty four hours electricity in the state.

He said the Lagos State Government is ready to work with the critical stakeholders to actualise the targeted increase in available electricity supply to about 3,500 megawatts (MW) through coordinated action on generation, transmission, distribution and metering.

Governor Sanwo-Olu made the commitment on Thursday at the Lagos State High-Level Strategic Power Town Hall, held at Lagos House, Marina, to critically assess the state’s electricity situation and develop practical solutions to the challenges affecting generation, transmission and distribution.

The high-level engagement was attended by stakeholders across the electricity value chain, including regulators, power distributors, transmission operators, asset managers, investors and representatives of the Federal Government and Lagos State Government.

The town hall meeting focused on how Lagos can leverage its enormous electricity demand, existing infrastructure and emerging state electricity market to attract investment and deliver more reliable power to homes, businesses and industries.

Speaking at the town hall meeting, Governor Sanwo-Olu called for stronger coordination, smart metering, better data management, enforcement and revenue assurance as panacea to the perennial challenges facing the sector. He said stakeholders must work together to build consumer confidence and attract investment.

Also speaking, the Minister of Power, Mr. Joseph Tegbe, who was represented by the Director of Distribution Services in the Federal Ministry of Power, Engr. Baba Mustapha, said Lagos requires more than 6,000MW, but currently receives far less from the national grid.

He stressed that increased generation would have limited impact without adequate transmission and distribution infrastructure, identifying gas supply, generation, transmission capacity, distribution bottlenecks and metering as key priorities.

The Special Adviser to the President on Power and Chairman of the Presidential Taskforce on Power Sector Reset and Restoration, Dr. Rilwan Lanre Babalola, said the challenge before Lagos and Nigeria was no longer simply about generating more electricity, but about building a functional and sustainable electricity market.

He said the country must move away from a system where government continuously acts as buyer, guarantor and absorber of losses across the electricity value chain.

Babalola explained that the proposed Clean Lagos Electricity Market (CLEM) could provide a practical model for transforming Lagos’ huge electricity demand into a structured and investable market through demand aggregation, bilateral contracting, open access, payment assurance and transparent settlement.

He said stakeholders must be able to establish where the demand and customers are, where electricity and gas will come from, whether the network can deliver the power, the efficient tariff and how payments will move transparently to generators, network operators and gas suppliers.

Babalola also highlighted the importance of decentralisation following constitutional amendments and the Electricity Act, which have opened the way for states to establish and regulate their electricity markets.

Also speaking, the Lagos State Commissioner for Energy and Mineral Resources, Mr. Abiodun Ogunleye, said the town hall meeting was convened to bring an end to what he described as the culture of blackout in Lagos.

He said Lagos State would develop clear action points and establish a baseline for measuring progress at the proposed six-month review.

On tariffs, Ogunleye stressed that improved electricity supply must accompany payment, insisting that consumers should not be made to pay for darkness

He explained that achieving the target would allow more feeders to operate and provide increased electricity to homes and industries that require reliable power for productive activities.

Ogunleye also disclosed that newly commissioned substations would contribute to the state’s power infrastructure, while the government would work with distribution companies to monitor selected feeders and measure improvements in electricity supply.

The Chief Executive Officer of the Lagos State Electricity Regulatory Commission, Temitope George, identified constraints in generation and transmission, energy theft, vandalism and non-payment of electricity bills as major challenges affecting the sector.

George urged electricity consumers to pay for the power they consume, warning that non-payment distorts the electricity market and ultimately affects the ability of other consumers to receive adequate supply.

She said Lagos State is also exploring embedded power generation to complement electricity from the national grid and reduce overdependence on the national system.

The town hall ended with a commitment by stakeholders to translate the discussions into concrete action points, establish measurable baselines and periodically assess progress.

The post Sanwo-Olu Sets Fresh Agenda to End Blackouts, as Lagos Targets 3,500MW Power Supply appeared first on Business Today NG.

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