Nigeria’s new carrier, the Nigeria Air, will commence operations after years of attempts to float a national brand after the collapse of the Nigeria Airways 20 years ago.
“The new carrier which [will] commence local and international flights before May 2023, is a product of partnership with the Ethiopia Airways,” Nigeria’s Aviation Minister Hadi Sirika said on Thursday at the ongoing National Aviation Stakeholders Forum 2023 in Abuja.
Sirika has been working to revive the country’s carrier for almost eight years.
“Local and international flights will commence soon by May 29. Negotiations between the Ethiopian Airlines Group Consortium and the Nigerian government are ongoing. The next step is for the country’s Federal Executive Council to approve of the full business case,” Sirika said.
He said the airline would ensure the reduction in capital flight from Nigeria, maximize benefits of Bilateral Aviation Safety Agreement (BASA) and Single African Air Transport Market (SAATM) as well as develop the aviation hub.
“The national carrier will contribute to Nigeria’s gross domestic product, grow hospitality and tourism industry, promote agricultural sector as well as create more jobs,” he explained.
The Nigeria Air concept was unveiled at the Farnborough Air Show in England on July 18, 2018 but had not materialised because of the controversy over the modalities for its establishment, including working capital.
Nigeria Airways collapsed 20 years ago after it was rebranded in 1971 due to the dissolution of West African Airways Corporation which was founded in 1958. The airline was closed in 2003 due to large-scale corruption and lack of funds.
With 23 active airlines, 554 licensed pilots, 913 licensed engineers and 1,700 cabin personnel, Nigeria resolved through its Asset Management Corporation of Nigeria (Amcon) to float another national airline to join the competition regardless of the efforts of the aviation ministry.
Thorny path for Nigeria Air
It has been a thorny path for Nigeria Air as many Nigerians opposed it, with some stakeholders in the country’s aviation industry going to court to stall its emergence.
Fearing they could lose dominance of the air space, some Nigerian local airlines have sued the government seeking to stop the new national carrier arguing it would get unfair advantages.
According to authorities, the Nigerian government will retain a five percent stake in the new airline while Ethiopian Airlines will have a 49 percent stake and 46 percent of the airline would be owned by Nigerian investors.
The Nigerian government anticipates raising $250 million from the private sector.
Some critics also said that instead of giving Ethiopian Airlines a 49 percent stake, there could have been better partnership arrangement that would benefit Nigeria more.
Assistant General Secretary of Nigeria’s Aviation Round Table Olumide Ohunayo said that though Ethiopian Airlines has been a successful carrier in Africa, its partner carriers on the continent such as Congo Airways, Tchadia Airlines and Zambia Airways have all failed except Asky Airline, which just upped its fleet of aircraft to about 12.
Nigeria’s High Court in November 2022 granted an interim order restraining the country’s government from proceeding with the establishment of the national carrier. However, the government defied the restraining order and continued with the venture.
Only airline to respond
Despite the criticisms, Sirika explained that Ethiopian Airlines was the only airline that responded to its requests for expression of interest and fulfilled all the stipulated conditions laid down by Nigeria.
He said other global airlines rejected Nigeria’s call to join hands in floating her national carrier despite the fact that he met with them at several air shows and international aviation forums.
He, however, said that the Ethiopian Airlines proved that it is efficient and prosperous by registering over $1 billion profit after tax even in the wake of the Covid-19 pandemic.
“The choice of Ethiopian Airlines is good for Nigeria and it is in line with the African Union (AU) agenda. Our desire is for Africa to come together and lead the continent’s aviation market through our new partnership. The partnership will also reduce operational costs and airfares for Nigerians as well as African air travellers as opposed to the current situation,” Sirika said.
“Contrary to what people think, let it be known that Ethiopian Airlines emerged as the preferred partner of Nigeria Air through a transparent and credible process that cannot be faulted because we want the project to succeed so that our country can have an airline that does not suffer the fate of the former Nigeria Airways,” he added.
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Tanzania: Samia Hands Over NBC’s 354m/ – Crop Insurance Compensation to Farmers Affected By Hailstorms
President Samia Suluhu Hassan, has handed over a cheque of 354m/- from the National Bank of Commerce (NBC) as compensation to tobacco farmers, who were affected by hailstorms during the previous farming season in various regions across the country.
Handing over the cheque in Dodoma, the compensation is part of the crop insurance service provided by NBC in collaboration with the National Insurance Corporation (NIC).
Furthermore, President Samia has also handed over health insurance coverage to members of the Lindi Mwambao Cooperative Union based in Lindi Region, through the Farmers’ Health Insurance service provided by the bank in partnership with Assurance Insurance Company.
While visiting the bank’s pavilion at the Nanenane Agricultural Exhibition and being received and briefed by the bank’s Managing Director, Mr. Theobald Sabi, she said: “This crop insurance is one of the crucial solutions in ensuring farmers have a reliable income, without fear of challenges such as natural disasters, including hailstorms.
“I call upon all farmers in the country to make the best use of this important opportunity by accessing these kinds of insurance services. I also highly commend NBC and all the stakeholders participating in this programme.”
Elaborating further on the crop insurance service, the Minister of Agriculture, Hussein Bashe, stated that it will help to recover the loss farmers incurred, especially in various calamities beyond their control.
Citing them as floods, fires, and hailstorms, which have significantly affected the well-being of farmers and caused some to be reluctant to invest in the crucial sector, Mr Bashe added: “However, our President, this step by NBC is just the beginning, as this is the second year since they started offering this service, and the results are already visible.
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“As the government, we promise to continue supporting the wider implementation of this service, with the goal of ensuring that this crop insurance service reaches more farmers.”
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On his part, Mr Sabi said that the farmers who benefited from the compensations are from 23 primary cooperative unions in the regions of Shinyanga, Geita, Tabora, Mbeya, Katavi, and Kigoma.
He added: “In addition to these insurance services, as a bank, through this exhibition, we have continued with our programme of providing financial education and various banking opportunities to farmers, alongside offering them various loans, including loans for agricultural equipment, particularly tractors, to eligible farmers.:
At the NBC booth, President Samia also had the opportunity to be briefed on the various services offered by the bank to the farmers namely crop insurance and health insurance services.
There, the President had the chance to speak with some of the beneficiaries of the services, including the Vice-Chairman of the Lindi Mwambao Primary Cooperative Union, Mr. Hassan Mnumbe, whose union has been provided with a health insurance card from the bank.
Source: allafrica.com
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