Connect with us
JUMIA TECH WEEK

BUSINESS & ECONOMY

Air Nigeria: Collaboration With Ethiopia Airlines Best For Country, Says Hadi Sirika

Published

on

Nigeria’s Minister of Aviation, Hadi Sirika has justified the collaboration entered with Ethiopia Airlines toward the birth of a national carrier stating that the arrangement is in keeping with the African Continental Free Trade Area (AfCTA).

He noted that over ninety percent of airlines doing business in Africa are non-African pointing out that Ethiopian Airlines was the only airline on earth that made a profit during COVID.

Alhaji Sirika who addressed the media on the scorecard of Muhammadu Buhari in the Aviation sector Thursday in Abuja insists that no administration has done better than the administration in the provision of infrastructure and improvement on aviation policy.

He maintained that Ethiopian Airlines is about the number one profitable airline in the world, adding the partnership would not just be beneficial for the 250 million Nigerian population but also impact positively the economy of the continent.

Whether it is the right decision that we are ceding Nigerian Airway to Ethiopia airlines, I think it is a fair comment.

Advertisement

“I am not making case for Ethiopia Airlines. It is an African Airline and it has been existing for 70 years. They fought the war but the airline was saved. Ethiopian Airlines was the only airline on earth that made a profit during     COVID and today it has declared this year a profit of $1 billion.

“The only other airline that declared profit is Qatar Airlines.  Whether they are doing it correctly— yes, they are doing it correctly. They have not passed the 170 airline mark they have robust organisation and  a member of Star Airlines. They are a huge company. Because they are African does not mean they are not good.

He said the ministry is working in accord with African Union AU agenda for Africa to develop that takes advantage of the 1. 2 billion people in this continent. Besides, he said the ministry invited bids from some top airlines including Qatar Airlines, and Lufthansa but got no response.

“Personally I went to Lufthansa, Qatar, and invited all the airlines to come. I went for a road show in London in the US and other places.

“We said that government has no business in business. We saw it in Nigeria’s airways. It went down simply because of governance and the issue of free tickets to Hajj, Jerusalem and all of that. We said Ok, that said we need some -0-shoulders for the airline so we gave the FG 5 percent—all the 250 million people of Nigeria because has no business in business and we can’t run it and you know the truth.

Advertisement

“Second we say 46 percent of the airline will be owned by Nigerian institutional investors who are interested to buy. If you add the two together you have 51 percent which is the controlling share”

He maintained that Nigerians still control the majority share in the new airline which is estimated to gulp $350 million dollars

“Equity partners and investors will now invest 49 percent.  The total, for now, to come and start up the airline is $350 million.

“Ethiopia Airline is expected to bring 49 percent of 350M and the rest 5 percent –$17.5 and 46 percent from those that want it (Ngr) institutional investors … Whether you like it or not an airline to serve about 250 million people at the centre of Africa must interact must associate and partner with a foreign airline.

“Ethiopia is the second largest country in Africa while Nigeria is the largest in Africa. Transportation is about population. Connecting those two populations is the best thing to happen to Africa. If it happens by sheer luck I think it will be the best thing to happen in Africa.

Advertisement

On the threats by some foreign airlines to withdraw services from the country, he said the country has no direct control over the problem citing the global economic decline. Nonetheless, he said the administration is committed to bilateral air services agreements and treaties reached with the airlines

The foreign carriers and their threat to withdraw from Nigeria and all of that ” Buhari is committed to agreement and treaties. he respects them. But again went through another recession and challenges with importation and insecurity, COVID 19 which totally took the money out.

“One would have taught that since Buhari had demonstrated he is responsible and its government had paid what it met and had promised he would pay in before the end of December, one would have expected they would believe and trust us because of future benefits –but they are insisting Nigeria should be banned.

“Honestly we need their service but they need our market more. We are 250 million people while some of them are 10 million. They should give us breathing space and respect we need some honour as a country. We are a sovereign nation and understand, “he stressed.

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

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

OIL & GAS

Nigerian Government Plans to Restore Crude Production to 1.7 Million Barrels Per Day

Published

on

The Nigerian Government has stated that efforts are underway to restore Nigeria’s oil production, including condensate, to 1.7 million barrels per day.

Sen. Heineken Lokpobiri, Minister of State for Petroleum Resources (Oil), assured in response to recent concerns about a shortfall in Nigerian oil production in the first quarter of 2024.

According to a statement from Nneamaka Okafor, Special Assistant, Media and Communications, to the Minister, Sen. Lokpobiri, measures are being taken to address the situation and not only restore but also increase production.

The minister clarifies that the reported production shortfall was primarily caused by issues encountered on the Trans Niger Pipeline, as well as maintenance activities carried out by some Nigerian oil companies.

The Minister is also pleased to announce that the issues have been adequately addressed, and that production is expected to resume at previous levels in the coming days.

Advertisement

He expects Nigeria’s oil production, including condensate, to be restored soon, having been around 1.7 million barrels per day (bpd) before these developments.

Furthermore, the Ministry of Petroleum Resources is actively involved in policy development aimed at maximising the utilisation of all available wells in Nigeria.

This strategic approach will allow the country to increase production, generating vital revenue to maintain the country’s foreign exchange reserves.

Increased revenue will also allow the government to meet its commitments to provide essential infrastructure, as outlined in the 2024 budget.

The Minister also expresses renewed optimism as Nigeria navigates these challenges, urging everyone to remain committed to ensuring the long-term viability and growth of Nigeria’s oil sector, which is critical to the country’s economy.

Advertisement
Continue Reading

BUSINESS & ECONOMY

Our Policies Geared Towards Growing Businesses, Attracting New Ones—Gov. Ott

Published

on

Dr. Alex Otti, Governor of Abia State, says his administration has worked to grow businesses and attract new ones to the state over the last ten months.
Governor Otti described Abia as an investment-friendly state, expressing his desire to see businesses operating in the state grow.
The Governor made this statement while meeting with the Managing Director and management team of Inner Galaxy Steel Company Limited, a Chinese conglomerate operating in Abia State’s Ukwa-West axis, who paid him a visit on Thursday.
“Our policy is to support the industry. Some of our initiatives are aimed at supporting existing industries while also attracting new ones.
“I encourage you to continue doing business in Abia State because we welcome investors. We have just set up the Abia Industrial Innovation Park (AIIP) in Owaza. If there are some collaborations, since you are already in Ukwa West, we will tell the Managing Director of the AIIP to engage with you,” Governor Otti told the visiting Chinese team, adding that, it is only when investments grow that businesses can employ the teeming unemployed Abia youths.
He charged the company with fair labour practices as a way of attracting the government’s continued support, while allaying their fears of clamping down on them following allegations of not providing a conducive working environment for their workers.
The Governor encouraged the company to collaborate with the management of the Abia Industrial Innovation Park to take advantage of the opportunities provided in the area.
Earlier, the company’s Managing Director, Mr Lin Shanbiao, explained that Inner Galaxy is a conglomerate of four companies that produce steel, assemble caravan parts, manufacture automobile batteries and recycle used bottles.
He stated that their visit was to inform the Governor of their activities and to explore potential collaboration with the state government.

Continue Reading

BUSINESS & ECONOMY

Quest For Green Energy Boosted By Appointment Of New CEO At Global Energy Alliance For People, Planet

Published

on

Woochong Um

The Global Energy Alliance for People and Planet (GEAPP) announced today the appointment of Mr. Woochong Um as its new Chief Executive Officer.

Woochong Um will lead GEAPP following his tenure with the Asian Development Bank. GEAPP is a multi-sector alliance created in 2021 to address one of the defining challenges of our time—ending energy poverty and tackling the climate crisis through a just transition to renewable energy.

The appointment is a reaffirmation of GEAPP’s commitment to realizing greater change and opportunities to unlock green energy in Africa, Asia, Latin America and the Caribbean to power progress and secure an inclusive, resilient future for all.

The appointment of Woochong Um culminates in a rigorous selection process and represents the beginning of a new phase for GEAPP as it builds on a successful track record that started with its launch at COP26 in 2021.

To date, GEAPP has invested $464m of active capital in nearly 100 projects in almost 20 countries, and built an alliance of over 50 partners driving a shared mission that is showing early evidence of transformational impact with 147,000 tons of CO2 emissions averted, 1.3 million people and businesses connected to new or improved energy systems, and over 600,000 jobs and livelihoods supported (directly and indirectly) as cited in its second impact report Powering People & Planet.

Advertisement

Jessica Anderen, CEO of the IKEA Foundation, a founding partner of GEAPP alongside The Rockefeller Foundation and Bezos Earth Fund, said, “Woochong has deep experience in building diverse, trust-based coalitions that come together to deliver social and environmental impact at scale.

Woochong’s approach to leadership is rooted in his values and a long-standing commitment to making a positive impact on people and the planet. The IKEA Foundation is delighted to welcome him to his new role.”

Dr. Rajiv J. Shah, President of The Rockefeller Foundation, said, “At a moment when the world has finally realised the need to transition away from fossil fuels, Woochong is the innovative and proven executive GEAPP needs to ensure that everyone – not just the wealthiest countries and communities—can power their lives and futures with renewable energy.”

GEAPP is grateful to have had the dedicated and strong leadership of interim CEO Joseph Ng’ang’a, who guided the alliance and advanced its work to scale distributed renewable energy and battery energy storage systems across Africa, Asia, Latin America and the Caribbean.

Effective 1 August 2024, Joseph will hand over the role to Woochong Um, who will continue the alliance’s pioneering work to scale new solutions, strengthen partnerships, and facilitate access to an inclusive and resilient future for all.

Advertisement

“The appointment of Woochong Um as CEO of GEAPP is an inspired choice,” said Dr. Andrew Steer, President  & CEO of the Bezos Earth Fund. “The mission of GEAPP could not be more important, and

Woochong brings to the task a highly distinguished track record as a leader, mentor, and change agent. This appointment will add momentum to the pace of the energy transition in emerging and developing countries, where families and businesses will have better and safer access to power. We’re proud to be a partner with GEAPP’s collective movement to drive a just energy transition for all.”

“As we embark on this journey toward a greener future, we stand firm in our resolve to champion innovation and accessibility in the energy transition especially in emerging markets.

Over the past two years, we have laid the foundation for GEAPP’s continued growth and catalytic impact and I look forward to continuing our work with Woochong Um to deliver an even greater impact for people and the planet together with our alliance partners,” said Joseph Nganga, Interim CEO of GEAPP.

Woochong Um brings a wealth of experience from his prestigious 31-year career at the Asian Development Bank. As ADB’s Managing Director General, he spearheaded global partnerships and funding mechanisms to transform economies and communities.

Advertisement

Woochong’s time at the ADB saw him driving the bank’s sustainability agenda, putting environmental and renewable energy action plans at the heart of major development sectors, including health, education, agriculture, community resilience, and humanitarian settings.

Before the ADB, he worked as a corporate computer systems specialist at Pitney Bowes and Pfizer in the USA.

Continue Reading
Advertisement

Trending