Connect with us

Business

Nigerian airlines may go extinct within 30 days

info

Published

on

Allen.jpg

MTN ADVERT

The Vice Chairman of the Airline Operators of Nigeria (AON) and Chairman of Air Peace, Allen Onyema, has warned that several domestic airlines could cease operations within the next 30 days unless the Federal Government urgently intervenes in the challenges confronting the aviation industry.

Mr Onyema said the industry is facing an existential crisis driven by high operating costs and multiple financial obligations.

He spoke on Wednesday in Lagos at the launch of Pathways, Pilgrimage & Destiny: The Biography of Alhaji Muneer Bankole, the biography of the founder of Med-View Airline.

“Going into aviation is not a piece of cake. It is an industry that is not very rewarding. It is capital-intensive, yet less rewarding. Today, we are facing a phase that poses existential threats. Except something drastic is done very quickly within the next 30 days, a lot of airlines might go extinct,” Mr Onyema said.

His warning comes amid renewed concerns among Nigerian airline operators over the cost of aviation fuel, multiple regulatory charges, access to financing and the financial obligations imposed on carriers.

PT WHATSAPP CHANNEL

Mr Onyema also criticised the planned picketing of airlines by aviation unions over the non-remittance of the five per cent Ticket Sales Charge (TSC), warning that such action could trigger a wider disruption in domestic air travel.

He said airlines would support one another if any carrier were picketed.

“If they picket any airline, others will go because there’s no need for that. There is nowhere in the world that government agencies use unions to talk about issues of debt.”

The five per cent TSC is a statutory charge collected by the Nigerian Civil Aviation Authority (NCAA) on tickets originating from Nigeria. The authority says the charge is collected under the Civil Aviation Act and shared with other aviation agencies, including the Nigerian Airspace Management Agency, the Nigerian Meteorological Agency, the Nigerian College of Aviation Technology and the Nigerian Safety Investigation Bureau.

The NCAA has also acknowledged challenges surrounding the timely remittance of the charge.

In February, the authority met with AON regarding its requirement that airlines provide advance payment guarantees to ensure the timely remittance of the statutory charge.

The NCAA said the measure was intended to safeguard funds collected from passengers and improve the predictability of funding for aviation agencies. It subsequently deferred implementation of the requirement for 90 days to allow operators to regularise outstanding remittances.

Mr Onyema, however, argued that the financial burden on airlines needed to be addressed through a broader review of government charges and the industry’s operating environment.

“The airlines are not against helping the government generate revenue. But no airline in the world is taxed directly for revenue. The airlines indirectly provide revenue for the government,” he said.

Rising cost pressures

Mr Onyema explained that the industry’s difficulties were not limited to the TSC, citing the capital-intensive nature of airline operations and the high costs of aircraft maintenance and daily operations.

He said the survival of airlines required urgent government action rather than measures that could further increase their financial burden.

“Everybody pities Nigerian airlines, yet nobody wants to do anything about their situation,” he said.

He added that the industry’s history showed how difficult it had been for domestic carriers to remain in business over the long term, noting that more than 50 airlines had exited the Nigerian market over the years.

AON has previously cited the collapse of more than 50 Nigerian airlines over a three-decade period as evidence of the industry’s long-standing financial difficulties.

The sector has continued to face pressure from rising aviation fuel costs, foreign exchange challenges, aircraft maintenance expenses and financing costs.

In June, Mr Onyema warned that airlines were borrowing from banks to purchase aviation fuel and reducing flight frequencies to limit losses. He also called for a review of aviation taxes and charges, particularly the five per cent TSC.

More recently, he said many operators had been forced to scale back operations due to the rising cost of keeping aircraft in service. He also warned that the financial pressure could lead to further airline failures.

Calls for government intervention

Mr Onyema’s latest warning adds to growing calls by airline operators for the government to review the financial and regulatory environment in which domestic carriers operate.

READ ALSO: Nigerian airlines now depend on bank loans as fuel costs soar — Onyema

The AON has previously sought direct engagement with President Bola Tinubu over aviation taxes and charges, arguing that the cumulative burden was undermining the viability of domestic airlines.

Mr Onyema called for an aviation taxes and charges review committee in June to examine the various levies imposed on airlines and recommend measures to improve the industry’s sustainability.

The debate comes as the government continues to defend aviation-sector reforms and the need for airlines to meet their statutory obligations.

The NCAA has said that the five per cent TSC is not an arbitrary levy but a statutory charge collected from passengers and remitted through airlines to fund key aviation agencies.

For airlines, however, the issue is part of a wider concern about the cost of doing business in an industry where aircraft acquisition, maintenance, fuel and financing are largely dollar-denominated.

Mr Onyema said that unless urgent measures were taken to address the pressures facing operators, more airlines could be forced out of business.


Discover more from Premium Times Nigeria

Subscribe to get the latest posts sent to your email.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Tinubu reacts as Nigeria wins arbitration against Sunrise Power

info

Published

on

By

588050402 18034372778724312 8608192129317256682 n.jpg

On Thursday, an International Arbitration Tribunal under the auspices of the International Chamber of Commerce (ICC) in Paris issued an award in favour of Nigeria, rejecting the claims in the arbitration instituted by Sunrise Power and Transmission Company Ltd (Sunrise).

The company had made a claim against the Federal Republic of Nigeria, demanding $680 million as a settlement sum and interest in respect of another arbitration in which it is claiming over $2.7 billion in compensation and interest.

The claim relates to disputes associated with the development of the 3,960 MW Mambila Hydroelectric Power Project in Taraba State.

The tribunal, in its verdict on Thursday, directed Sunrise and its promoter to refund Nigeria’s legal fees of $11.8 million.

It also rejected Sunrise’s claim for an order that Nigeria should pay the company $400 million in satisfaction of the settlement sum of $200 million and the default sum of $200 million.

The tribunal insisted that Leno Adesanya, the promoter of Sunrise, is bound by the arbitration agreement with Nigeria pursuant to the settlement agreement, adding that the tribunal has jurisdiction over Nigeria’s counterclaim against him and his firm.

PT WHATSAPP CHANNEL
Dangote Refinery AD

Tinubu speaks

In his reaction Thursday evening, President Bola Tinubu said the latest decision affirms the Nigerian State’s determination not to succumb to predatory and exploitative claims by corrupt local and international entities and their enablers and funders.

“On behalf of the Government and People of the Federal Republic of Nigeria, I strongly commend the tremendous efforts of the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi and the entire team at the Federal Ministry of Justice for their efforts in this matter,” the president said in a statement signed by presidential spokesperson, Bayo Onanuga.

“I also commend the FRN defence team, led by Ms Elizabeth Oger-Gross and Mr Tolu Obamuroh, both of Paul Hastings LLP, for their professional and excellent defence of the country.

“I commend the patriotism and support of former President Olusegun Obasanjo, GCFR, and late President Muhammadu Buhari, GCFR, who testified in the case, which dated back to an illegal 2003 contract to build a 3,050-megawatt hydroelectric plant in Taraba State under a build-operate-transfer model. The Federal Executive Council never authorised the contract.”

READ ALSO: Shettima clarifies remarks on northern governors’ support for President Tinubu in 2023

Mr Tinubu also thanked the other witnesses in the case, including former Ministers Babatunde Raji Fashola, SAN, and Suleiman Adamu, as well as the experts, for their active participation in defending Nigeria’s interests in the arbitration.

“I commend the National Security Adviser for his support and the Economic and Financial Crimes Commission for its investigation into the case.

“I want to assure you that while our country remains committed to partnering with genuine investors and honouring its legal obligations, it will continue to defend all opportunistic claims instituted against our commonwealth strongly,” he said.

Thursday’s ICC ruling clears the single biggest legal hurdle that has paralysed the Mambilla hydro power project for years, the statement said.


Discover more from Premium Times Nigeria

Subscribe to get the latest posts sent to your email.

Continue Reading

Business

EFCC Begins Investigation of Suspect Arrested with Counterfeit $212,200 in Kano

info

Published

on

By

The Kano Zonal Directorate of the Economic and Financial Crimes Commission,  EFCC,  has commenced investigation  of a suspect, Usaini Ibrahim, arrested with  counterfeit currency  totaling $212,200( Two hundred and Twelve Thousand, Two Hundred United States Dollar)

The suspect was arrested on September 3, 2026, by operatives of the National Drug Law Enforcement Agency,  NDLEA,  along Maiduguri Road in Kano following the discovery of the counterfeit currency. The NDLEA subsequently handed over the suspect and the fake currency to the EFCC for further investigation and possible prosecution.
The formal handover took place at the Kano Directorate of the EFCC, where the Acting Zonal Director,  Assistant Commander  of the EFCC,  ACE1 Friday S. Ebelo, received both the suspect and the exhibits.  A representative of the NDLEA, Deputy Superintendent of Narcotics,  Yahaya Labaran,  while handing over the case, expressed appreciation for the continued strategic collaboration between the two agencies in sanitizing Nigeria’s financial system.
Ebelo, acknowledging the handover, reiterated the EFCC’s commitment to cleansing the financial ecosystem of counterfeit currencies and fraudulent schemes. He specifically warned members of the public to be wary of “money doubling” scams, which often involves using counterfeit notes as tools to defraud unsuspecting victims.
“Such fake currencies coming into the economy do not paint a good picture of us,” he said.   He called on the public to remain vigilant and avoid falling victim to individuals offering to “double” money and other financial crimes through questionable means.
The suspect, Usaini Ibrahim, is currently in the custody of the EFCC and will be arraigned in court upon the conclusion of investigations.

The post EFCC Begins Investigation of Suspect Arrested with Counterfeit $212,200 in Kano appeared first on Business Today NG.

Continue Reading

Trending