OCTOBER 12, 2022

Lagos State Governor Babajide Sanwo-Olu has received the Federal Government of Nigeria letter of approval for the construction of the Lekki airport.

The presentation was made on Tuesday by Aviation Minister Hadi Sirika at the Ehingbeti Lagos Economic Summit.

Sirika expressed confidence that the new airport will link Nigeria to the world, and open Lagos to more international economic partnerships.

Work on the facility is expected to begin in 2023 and would be constructed on 3,500 hectares of land on the Lekki-Epe corridor.

Last week, Ope George, Special Adviser to Governor on Public-Private Partnerships (PPPs) announced the Nigerian government’s approval.

George also confirmed that the master plan and aeronautical designs were already in place.

Studies are ongoing about strategies and funding, after which the project will be taken to the marketplace, he added.

Retired Group Captain John Ojikutu said he was elated about the Lekki airport, recalling its conception more than decade ago.

The aviation expert revealed that the project came to light during the tenure of former Lagos Governor Babatunde Fashola, the incumbent Works and Housing Minister.

OCTOBER 12, 2022

By Biodun Busari

Nigerian medical doctors and their counterparts from developing countries working in the United Kingdom have lamented exploitation in the course of their work.

This was revealed by BBC on Tuesday adding that an investigation proved that Nigerian doctors recruited by a British healthcare company are expected to work in private hospitals under conditions not allowed in the National Health Service (NHS).

While the British Medical Association (BMA) has described the situation as “shocking”, some of the hospitals denied the allegations as claimed by Nigerians.

BBC spoke to several foreign medical practitioners and one of them was a young Nigerian doctor, Augustine Enekwechi who worked at the private Nuffield Health Leeds Hospital in 2021.

Enekwechi said his working hours were extreme – on 24 hours a day for a week at a time. He claimed he was unable to leave the hospital grounds, adding that the working environment looked like “a prison.”

OCTOBER 13, 2022

By Wole Oyebade

Airplane

How govt’s negligence enhances foreign airlines’ exploitation of Nigerians’

Worried by the chaotic status of international travel in the country, travel agencies, will next week, take complaints to the National Assembly to seek legislative intervention on the foreign airlines’ protracted stuck fund crisis rocking the air transport sector.

Over 2000 travel agencies, under the aegis of the National Association of Nigerian Travel Agencies (NANTA), will protest the Central Bank’s withholding of about $300 million, seemingly nonchalance of the Federal Government to finding a lasting solution, and attendant exposure of Nigerian travellers to exploitative fares.

The Guardian, yesterday, learnt that about two months after the CBN released $265 million out of the $464 million trapped in Nigeria, there has been no reprieve in the crisis.

Affordable travel tickets that were earlier withdrawn by the foreign airlines in the wake of the crisis have continued to elude the Nigerian market, even as the stock funds continue to accumulate and are now more than $300 million.

President of the National Association of Nigerian Travel Agencies (NANTA), Susan Akporiaye, earlier, said the consequence of the stuck fund was the misfortune of Nigerian travellers buying an average six-hour Economy Class ticket for between N1.5 to N2.7 million.

The Business Class variant sells at an average of N4 to N5 million – over a 250 per cent spike from the rate sold in other parts of the world.

Sources told The Guardian that the matter has almost gone out of hand, with travellers, travel agencies and the entire industry in distress.

“Government’s negligence is the biggest worry for all of us. Not only has the government failed to engage the airlines and other stakeholders concerning the stuck fund, but most disappointing is the Central Bank’s comment that foreign airlines are not its priority. Really? Then, something is fundamentally wrong with us as a people and NANTA has decided to take the matter to the National Assembly next week Monday,” one of the sources offered.

Travel expert, who also doubles as the Chairman of the Airlines and Passengers Joint Committee (APJC) of the International Air Transport Association (IATA), Bankole Bernard, also blamed the government’s negligence for the worsening crisis.

Bernard said the CBN’s refusal to release stranded funds or engage with the business partners amounts to an act of sabotage of the travelling public.

He said: “There is a contractual agreement with airlines to sell in Naira and get dollar equivalent in return. But the CBN is now saying that the airlines are not her priority after the carriers had sold in Naira. Even among thieves, there should be an honour.

“Yet, while CBN is not giving dollars to airlines to repatriate their sales, the government’s aviation agencies keep collecting taxes and charges in dollars from the airlines. Where are the airlines supposed to get it? Why can’t the government resolve that, by ensuring that agencies collect their dues in Naira, which is 45 per cent of each airfare, to reduce the burden of stranded funds? Unfortunately, the ripple effects are all passed to the air travellers that are punished by the foreign airlines with exorbitant fares,” Bernard said.

Akporiaye earlier explained that the currently available tickets in Nigeria are premium because most of the airlines have withdrawn the affordable layers.

“Some foreign airlines are blocking travel agencies from selling their tickets on the Global Distribution System (GDS) platform. The inventories are blocked on the platform, meaning travel agencies and even airline offices cannot issue because the inventory was blocked for Nigeria.”

“The ones that have not closed inventories are restricting sales to the highest fares in each cabin (Economy, Business and First Class). You don’t even want to know what the prices are. It is just crazy and totally out of reach,” she lamented.

The International Air Transport Association (IATA) earlier warned that Nigeria and other countries withholding airline funds risk a 200 to 300 per cent spike in airfares. The Central Bank of Nigeria (CBN) recently released $265 million out of the $464 million trapped in Nigeria as of July 2022.

OCTOBER 13, 2022

.Assures of their safety, shops for more

By Adesina Wahab

Ghana High Commission in Nigeria has said there are over 5,000 Nigerians studying in tertiary institutions in Ghana and has given the assurance of their welfare and safety in the country.

Officials of the high commission, Ghana Export Promotion Agency and the University of Ghana stated this while briefing the press in Lagos on the coming International Students Recruitment Fair slated for Lagos.

Nicolas Qyansah of the High Commission said the country would be happy to give access to Ghanaian education to more Nigerians.

“We realized that universities in Ghana come to Nigeria to recruit students but we are want to streamline that and before now, the High Commission had been involved in the recruitment of international students here in Nigeria as we started  participating  in the Lagos International Trade Fair in 2017. 

“This year, we are bringing 16 universities from Ghana to Nigeria. They include public and private ones. Some of them offer undergraduate and postgraduate courses. We do a lot of collaboration and we have a seamless transition for Nigerian students going to study in Ghana,” he said.

Also speaking, Banda Abdallah, Deputy Director of GEPA, said the exercise is part of the broader mandate of the Authority to promote goods and services. 

On the ease of securing necessary documents for intending students from Nigeria, Abdallah said the ECOWAS protocols allow free movement within the region and that intending students would only be given residence permit as soon as they have been registered as students.

An official of the University of Ghana, Yaw Dankuah, added that students from Nigeria would be able to enjoy quality education in the country.

He explained that Ghana is not taking advantage of the incessant strikes by university workers in Nigeria to come and poach students, but that societies benefit when they learn for each other, adding that there are also some foreign students in Nigeria. 

OCTOBER 16, 2022

FRANKFURT (Reuters) - Lufthansa's budget division Eurowings said on Sunday that more than half of its passengers will reach their planned destinations despite a pilots strike planned for this week.

For Monday, the first day of the three-day strike, more than 230 of the some 400 planned Eurowings flights will take place, the airline said.

More than half of flights will also take place on Tuesday and Wednesday, Eurowings said.

(Reporting by Tom Sims, Editing by Louise Heavens)

OCTOBER 16, 2022

SANTIAGO (Reuters) - LATAM Airlines, the biggest carrier in Latin America, said it plans to conclude its exit from bankruptcy on Nov. 3.

"This process will allow the group to emerge more agile, with a more competitive cost structure, adequate liquidity to face the future, with approximately $10.3 billion in equity, and close to $6.9 billion in debt," the company said in a statement late on Friday.

LATAM filed for Chapter 11 in 2020 after airline travel was hammered during the pandemic, and it won court approval that June.

The reorganization plan would inject about $8 billion into the airline through a combination of capital increase, issue of convertible bonds and new debt.

(Reporting by Natalia Ramos; Editing by David Gregorio)

OCTOBER 16, 2022

(Bloomberg) --

Sudan is seeking as much as $200 million in investment to revamp an airport in its capital and is also pressing ahead with talks with the United Arab Emirates on a potential port project, its finance minister said.

Authorities are raising funds for the Khartoum airport “mainly from Sudanese sources,” although they’re open to foreign funding, Gibril Ibrahim said in an interview in Washington, where he was attending the International Monetary Fund fall meetings.

He also confirmed there was an agreement “in principle” for the UAE to build a port on the Red Sea and manage it for a certain period. “We need to agree on how long, how do we share the revenue,” he said.

Ibrahim gave no further details, including on the potential cost. Reuters in June reported that the port and free trade zone would be a $4 billion investment.

Sudan’s economy would benefit from such large-scale spending after a coup last year that ousted the civilian members of a power-sharing government spurred Western donors to suspend aid, contributing to a funding crisis. The IMF forecasts Sudanese real gross domestic product will contract 0.3% this year, before expanding 2.6% in 2023.

The October 2021 putsch, which overturned an interim government installed after the 2019 overthrow of long-time dictator Omar al-Bashir, derailed a transition that appeared to be a rare bright spot in the Horn of Africa region marked by civil war and tyranny.

Sudan has received “zero” budgetary support from any country since the coup, Ibrahim said, and the stronger US dollar has also had a negative impact on the economy. 

“Food security is an issue because of hikes of oil prices, fertilizers and wheat,” said Ibrahim, a former rebel leader brought into government after a peace deal who retained his ministerial role post-coup.

He also hailed “new momentum” in talks between Sudan’s political factions to agree on a new civilian-led government. A deal that sees the army surrender some of its powers will likely meet the conditions of former donors in the US and Europe to restore assistance, Ibrahim said.

OCTOBER 16, 2022

• Lufthansa is updating its long-haul customer experience with a suite of new seats it's calling Allegris.

• Lufthansa will replace more than 30,000 seats throughout its fleet as part of a $2.5 billion refresh.

• Take a look at the new suites.

Lufthansa's new first class suites will have closeable doors that offer passengers a private dining experience on caviar and other gourmet foods at a restaurant-style table when the new premium seats debut next year on the German flag carrier's long-haul flights.

New first class suites, business class suites, and economy class sleeper seats will debut in 2023 as part of Lufthansa's nearly $2.5 billion investment in premium products and services.

The new first class and business class suites are being rolled out as part of Lufthansa's new "Allegris" premium product line on long-haul routes.

For the first time in Lufthansa's history, the first class suites will have closeable doors that nearly reach the ceiling. Passengers don't even need to leave their suite to change into their Lufthansa first class pajamas before going to sleep.

The forward-facing seats in the first class suites will be nearly 39 inches wide and can be converted into a bed. Every Lufthansa first class suite will have a large personal wardrobe for storage during the flight.

First class suite passengers can sit restaurant-style across from each other at a large dining table. Caviar service is available as part of the gourmet menu offerings.

A big-screen TV extends across the full width of the suite for in-flight entertainment. Wireless headphones can be connected via Bluetooth.

Lufthansa business class will also get a new front-row suite with higher walls, closing doors, a personal wardrobe, and a 27-inch monitor screen.

The economy class Sleeper's Row also gets new seats with a 40% larger reclining surface.

Lufthansa will replace more than 30,000 seats as part of the largest fleet modernization effort in the company's history.

OCTOBER 16, 2022

• A United flight made an emergency landing after it hit a bird shortly after takeoff, per abc7.

• Witnesses told the news channel they could see flames and heard loud noises from the jet's engine.

• A video posted on Twitter shows United flight 1930 spitting flames out of its left engine.

Flames could be seen coming from the engine of a United Airlines flight after the jet hit a bird shortly after taking off from Chicago O'Hare Airport on Friday morning, witnesses said.

The plane was destined for Miami but had to return to the airport, flight tracking data shows. United confirmed to abc7 that the jet had hit a bird and safely landed at about 11:15 a.m.

A passenger interviewed after finally reaching Miami said the incident had been "very scary."

Witnesses on the ground told the news channel they could see flames coming from United flight 1930 shortly after it took off.

Alison Doshen told abc7 of her "panic and shock": "You could see the one jet engine was on fire and the sound coming from it was extremely loud. I couldn't get to my phone to record anything because I couldn't stop looking at it, trying to figure out where it was going or where it was coming from. It was pretty scary."

A video shared on Twitter appears to show the jet shooting flames from one engine.

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Another Twitter user posted a reply saying her husband was on the flight, alongside a video from the interior of the left engine of a jet sparking flames. Insider couldn't verify whether it was the same plane.

Chris McCullough told abc7 he heard "this tremendous rumble" that shook his home as the plane passed over him in Bensenville. McCullough said the left engine would intermittently shoot out flames during its initial descent.

A United spokesperson said in a statement to Insider: "United flight 1930 returned to Chicago after experiencing a bird strike shortly after take-off. The aircraft landed safely and passengers deplaned at the gate. We assigned a new aircraft to operate this flight, which departed at 1:24 p.m."

The Federal Aviation Administration told abc7 it was investigating the incident.

The FAA didn't immediately respond to Insider's request for comment made outside normal working hours.

OCTOBER 16, 2022

(Bloomberg) -- China’s key economic data this week will likely show a fragile recovery as stringent Covid policies and a property-market slump continue to batter consumer and business confidence.

Official figures on Tuesday are expected to show a mixed picture for the economy in the third quarter. Gross domestic product probably expanded 3.4% from a year earlier, according to economists surveyed by Bloomberg, up from near-stagnant growth in the second quarter, when major cities like Shanghai were in lockdown.

September data for retail-sales growth will likely show a slowdown to 3.5% year-on-year as Covid restrictions kept many people at home. Industrial production probably stabilized, though, as higher spending on infrastructure drove up demand for materials such as steel.

Investors are watching closely how growth concerns are addressed as Communist Party officials meet in the next few days to select new leaders at their twice-a-decade congress. President Xi Jinping kicked off the event on Sunday, reiterating that economic development is his party’s “top priority.”

• Read more: Xi Says China’s Power Has Increased, Warns of ‘Dangerous Storms’

Economists predict China’s growth will slow to just 3.3% this year, much weaker than the official goal of around 5.5%. That would be the biggest miss since the government began setting GDP targets in the early 1990s. Beijing has downplayed the importance of this year’s target, vowing instead to achieve the “best outcome” possible.

A stronger rebound will depend on how soon China eases its zero-tolerance approach to Covid-19. The International Monetary Fund’s top official in China said on Friday that conditions for lifting Covid rules will probably be in place only in the second half of next year.

The People’s Bank of China has taken a measured approach to monetary easing, cutting its key interest rates twice this year and guiding banks to lower lending rates to spur borrowing. On Monday, officials are expected to maintain the rate on one-year policy loans, called the medium-term lending facility, at 2.75% and keep liquidity neutral.

Room for more aggressive easing is limited by the US Federal Reserve’s hawkish stance, with the yuan already having dropped to its weakest levels since 2008 as foreigners sell local assets.

What Bloomberg Economics Says:

“China’s 3Q GDP will likely show only a feeble recovery after growth stalled the prior quarter. Covid Zero, the property slump and power outages likely held back the rebound. Activity data for September should show signs of production stabilizing, while investment ticks up with help from government stimulus.”

--Chang Shu and Eric Zhu. For the full report, click here.

Elsewhere, a likely further acceleration in UK inflation, housing data in the US and a large Turkish rate cut may be among the biggest economic events of the week.

Click here for what happened last week and below is our wrap of what’s coming up in the global economy.

Asia

Elsewhere in the region, Reserve Bank of Australia Deputy Governor Michele Bullock will share the bank’s latest views in a speech on Tuesday following the RBA’s recent pivot to smaller rate hikes, while New Zealand inflation figures the same day will show if the central bank’s aggressive rate hikes are starting to rein in prices there.

Japan’s latest inflation figures on Friday are expected to show price growth hitting 3% for the first time since 1991, with the exception of tax-hike years. That will increase scrutiny on the need for the Bank of Japan to continue with rock-bottom interest rates that have pushed the yen to its weakest in 24 years and forced the government to intervene in markets. BOJ board member Seiji Adachi will share his thoughts on policy on Wednesday.

• For more, read Bloomberg Economics’ full Week Ahead for Asia

US Economy

In the wake of hotter US inflation numbers, the economic calendar shifts to housing data, including the National Association of Realtors’ figures Thursday on September sales of previously-owned homes.

Economists project an eighth-straight monthly decline in closings on existing houses as the impact of soaring interest rates falls squarely on residential real estate.

Mortgage rates are at two-decade highs, sidelining many potential buyers as the Fed employs aggressive tightening to beat back the worst inflation in a generation.

Government data on Wednesday is forecast to show a slump in September new home construction as builders dial back production in response to waning demand and higher borrowing costs.

Other data include industrial production, a pair of Fed bank surveys of regional manufacturing activity, and weekly jobless claims. The Fed will also issue its Beige Book of economic conditions around the country. Central bank speakers on the agenda include regional Fed presidents Neel Kashkari, Charles Evans and James Bullard.

• For more, read Bloomberg Economics’ full Week Ahead for the US

Europe, Middle East, Africa

Jeremy Hunt will begin his first full week as UK Chancellor of the Exchequer after the dramatic exit of his predecessor, Kwasi Kwarteng, after only 38 days. Prime Minister Liz Truss has scrapped a corporate-tax cut that was part of a radical fiscal package that roiled financial markets.

• Read more: Hunt Wins Backing of Bailey’s BOE, Leaving Truss Sidelined in the UK

Data will also draw their attention. On Wednesday, inflation is predicted to have accelerated in September to double digits, part of a cost-of-living squeeze that’s likely to intensify as higher mortgage rates feed through. Meanwhile, on Friday, retail sales will probably have dropped.

In the euro zone, consumer confidence the same day will be one of the highlights. It already hit an all-time low last month and is predicted to drop further, shadowed by high energy costs and the war in Ukraine.

Clues on what the European Central Bank might do at its rate meeting later this month may emerge as the pre-decision window closes for policy makers to speak in public. Vice President Luis de Guindos and Chief Economist Philip Lane will be among those scheduled for appearances.

The Turkish central bank will likely deliver another 100 basis-point cut on Thursday, further cementing its outlier status among global central banks. President Recep Tayyip Erdogan has called for single-digit rates by the end of this year despite annual inflation hurtling above 80%.

In Nigeria, data on Monday will likely show inflation quickened in September to more than double the 9% ceiling of the central bank’s target band for a fourth month.

By contrast, price growth in South Africa may have eased for a second successive month in September as gasoline costs declined. It’s still expected to stay above the central bank’s 6% ceiling and will likely prompt the Monetary Policy Committee to increase borrowing costs for a sixth successive meeting in November.

In neighboring Botswana, policy makers will likely hike borrowing costs on Thursday for a fourth straight meeting.

• For more, read Bloomberg Economics’ full Week Ahead for EMEA

Latin America

The Brazilian central bank’s Focus survey of market expectations gets the week rolling, followed by GDP-proxy data. Extraordinary cash subsidies to low-income households and other measures ahead of Brazil’s presidential elections have analysts marking up their growth forecasts for Latin America’s biggest economy.

From Peru, unemployment figures for the capital, Lima, should show that the megacity’s labor market still isn’t back to pre-pandemic form, while August GDP-proxy data is expected to show the economy slowing dramatically.

Colombia’s output report posted Tuesday will likely confirm that the economy is powering through the fastest inflation in over two decades. Data out Wednesday should show that the Andean nation posted a 56th straight trade deficit in August.

After a solid second quarter and better-than-expected July readings, Argentina’s August output figures due Thursday will likely reflect the drag from a number of gathering headwinds.

Budget data should point to the challenges facing new Economy Minister Sergio Massa, given that the government’s agreed to run a primary deficit of 2.5% of GDP in 2022 and 1.9% next year.

In Mexico, Citigroup Inc.’s Mexican unit, Banamex, posts its market expectations survey Thursday while the national statistics agency reports August retail sales data on Friday.

• For more, read Bloomberg Economics’ full Week Ahead for Latin America

(Updates with Xi speech in fourth paragraph)