OCTOBER 07, 2024

By Olasunkanmi Akinlotan

The United States’ oldest operating airline and the seventh-oldest operating globally, Delta Air Lines, has finalised plans to reintroduce daily flights from Lagos State to New York in December 2024.

With this development, the airline will transition from the Airbus A330-200, which accommodates 223 passengers, to the more spacious Airbus A330-900neo, capable of carrying 281 passengers.

This was contained in a statement made available to PUNCH Online on Monday, stating that the enhancement not only signifies an increase in capacity but also aims to provide an elevated travel experience for the flying public.

“This decision underscores Delta’s dedication to aligning its services with customer preferences and the evolving dynamics of air travel,” the statement stated.

The airline’s Head of Sales for West Africa, Mary Gbobaniyi, expressed excitement saying this development, “which will add more flights to the Nigerian market, could not have been better timed. Increased capacity and a larger aircraft mean more options and an elevated experience for our customers.

“As the leading global airline, Delta’s mission to connect the world creates opportunities, fosters understanding and expands horizons by connecting people and communities to each other and to their own potential.

“An essential element of Delta’s operational philosophy is our continuous monitoring of customer preferences and travel patterns. By closely examining where customers wish to fly, Delta effectively matches capacity to meet demand.”

The aviation company noted that its decision for a direct flight was borne out of customers’ feed.

“The decision to expand services to Lagos is a direct response to positive customer feedback regarding Delta’s offerings and the overall demand in the market,” the statement read.

To ensure a smooth travel experience, Delta advises “passengers traveling on flights from Lagos to arrive at the airport for check-in no later than three hours before departure to overcome airport security screening challenges.”

The airline also advised passengers to check-in 90 minutes before departure, saying, “Arriving at the weighing scales at the close of counters will not guarantee check-in and will be considered late.”

These guidelines, Delta says, will help provide its passengers with the best service and a stress-free travel process.

The statement further reads, “Premium travellers on the New York-Lagos route will have the opportunity to enjoy the Delta One Lounge at John F. Kennedy International Airport. This exclusive lounge offers a range of high-end amenities, including gourmet dining options, luxurious seating areas, and personalised services.

“Designed to enhance the travel experience, the Delta One Lounge provides a serene environment for passengers to relax before their flights, making it a perfect complement to the premium travel experience on this route.”

OCTOBER 08, 2024

By Faruk Shuaibu

The National Hajj Commission of Nigeria (NAHCON) has stated that the federal government will not subsidise hajj payment for pilgrims in 2025.

Daily Trust reports that government subsidy is mostly in the form of concessionary rate which allows pilgrims to access dollars at a reduced rate from the Central Bank of Nigeria (CBN).

A statement by the spokesperson of the commission, Fatima Sanda Usara, said for the 2025 Hajj, “There will be no concessionary exchange rate from the government for Hajj fare payment for pilgrims whether under state or private Hajj operators.”

This means that if the naira maintains its current rate of N1,650 to a dollar, each intending pilgrim will pay almost N10million for hajj fare as pilgrims pay at least $6,000.

While NAHCON is yet to announce the hajj fare for the 2025 hajj, States Pilgrims Welfare Board have begun asking intending pilgrims to pay N8.5m as initial deposit pending the announcement of the hajj fare.

The statement also announced the refund of 64,682 (150 Saudi Riyal) to every Nigerian pilgrim that participated in the 2023 hajj.

The statement added that the revelations were made during an interactive meeting between NAHCON and members of Private Tour Operators in Nigeria (PTOs).

“The meeting held today, 7th October 2024 was to update members on resolutions reached after resumption of office on Wednesday, 2nd October 2024 by Acting Chairman of the Commission, Prof Abdullahi Sale Pakistan who had been absent briefly on a trip.

“NAHCON’s Commissioner of Operations, Prince Anofi Olanrewaju Elegushi, chaired the virtual meeting with the PTO’s where he relayed new developments from both Saudi Arabia’s Ministry of Hajj and Umrah (MoHU) and NAHCON’s decisions resulting from the second EXCO meeting with the new head of the Commission.”

Elegushi also stated that Saudi Arabia had further reduced the number of PTO to 10 from 20 that was initially announced and each company must register a minimum of 2,000 pilgrims to be considered for Hajj visa approval.

He said for the 2022 refund, the commission is still awaiting further details but refund details have emerged only for PTOs that camped on Field Office 18 in 2022 and they are to collectively receive SR62, 602 (N26,993,224) as refund for poor feeding in the Masha’ir.

“Similarly, the Commissioner Operations informed the PTO members that the NAHCON’s EXCO has approved the option of honouring bank guarantee as payment of N40 million caution deposit for the 2025 Hajj. In view of the above, any operator who wishes to make the payment through bank guarantee but has already made a cash deposit is invited to request for collection of the earlier deposit in order to present the bank guarantee.”

He also clarified that contrary to claims that NAHCON owes PTOs N17 billion from the 2024 Hajj caution deposit of N25million, it only received N2billion, N750million from 110 companies that registered for the 2024 Hajj.

“The amount included a roll-over of N1billion, 250million from the previous year. From the amount, 30 companies requested for refunds amounting to N750m, which has been paid. The balance still in the custody of the commission accruing to undecided PTOs is N750m.”

OCTOBER 09, 2024

By Olasunkanmi Akinlotan

To satisfy tourists’ urges and attract more passengers, Delta Air Lines has listed four “must-visit locations” for Nigerians seeking fun around the world.

The four locations situated in Miami, a coastal city in the US, were listed in a statement made available to The PUNCH recently.

According to the airline, Nigerians are drawn to Miami’s vibrant, stunning coastline, rich cultural experiences and nightlife, adding, “Delta Air Lines offers daily flights from Atlanta to Miami, offering an unforgettable journey to this vibrant city.”

While speaking about the soft allure and the beautiful views of Miami and its standout tourist attraction sites, Delta added that it offered an average of 10 daily flights from Atlanta, Delta’s destination point from Lagos to explore Miami’s vibrant offerings.

“Few destinations are quite like Miami, Florida: vibrant cultures that flourish under the warm embrace of the sun, the soft allure of sandy beaches and a constellation of lively festivities. For Nigerians eager to revel in elevated experiences, eclectic nightlife and a diverse cultural community, this coastal city is a home away from home,” it noted.

The airline listed the tourism locations to be; South Beach, Little Havana, Wynwood Walls and Bayfront Park, all in Miami.

 It added, “South Beach: The Pulse of the City No other location captures Miami’s spirit like South Beach. This well-known sand stretch is a cultural epicentre brimming with architectural art-deco style and lively enthusiasm. South Beach transforms into a nightlife aficionado’s playground once the sun sets. Beachfront bars and glitzy nightclubs, such as “LIV”, resemble Lagos nightlife with their abundance of dining options and energetic dance floors.

 “Little Havana and more: Explore Multicultural CommunitiesLittle Havana captures the Cuban American experience like few other communities can, offering authentic cuisine, festivities and cultural experiences. Among the must-visit destinations in this enchanting enclave are the Calle Ocho Walk of Fame, which honours influential Cuban artists, and Café La Trova, a celebrated restaurant renowned for its exquisite culinary offerings like seared foie gras and rabo encendido pasta.

“Wynwood Walls: The Greatest Experience with Art Art enthusiasts, rejoice! This outdoor street art project turns the formerly industrial neighbourhood into a creative canvas with life-size murals by internationally recognised artists. Wynwood is an ideal spot for Nigerians to explore art galleries and secure their own art piece from street sellers offering distinctive, handcrafted products. Food trucks and pop-up events are a frequent highlight of vibrant art strolls, fostering an environment of friendship reminiscent of hometown events in Lagos.

“Bayfront Park: Urban Vibes Meet Nature Bayfront Park is a perfect intersection between the city bustle and hearing palm trees rustle. This expansive park provides a lovely fusion of recreational opportunities and peaceful waterfront vistas. Bayfront has something to offer everyone, whether it’s taking a leisurely stroll down the promenade or practising al fresco yoga. The celebration lasts all day and night, thanks to its proximity to downtown Miami, making waterfront restaurants and entertainment easily accessible.”

OCTOBER 14, 2024

Home prices across Canada ticked slightly higher in the third quarter, according to figures from Royal LePage, but despite low activity during the summer, prices are expected to move higher in the fourth quarter.

The aggregate national home price ticked modestly higher during the third quarter by 1.6 per cent annually to $815,500, while falling 1.1 per cent from the previous quarter, according to Royal LePage’s latest Home Price Survey, released Thursday.

The survey noted that most markets across the county saw “sluggish activity” during the summer, while sales volumes moved higher in September. Additionally, the report found 38 per cent of regional markets saw aggregate price gains during the third quarter compared to the previous quarter.

Phil Soper, the president and CEO of Royal LePage, said in an interview with BNN Bloomberg Thursday that real estate activity has generally been muted after a series of interest rate cuts from the Bank of Canada that brought the key policy rate to 4.25 per cent in September.

“It’s been sluggish… I will say September was a different story than July to August, but three (interest rate) cuts, and if you look at previous changes in monetary policy, the market tends to react a little more quickly. So, it’s been slow, I hope to say slow and steady as we look forward to the fall,” he said, noting that activity in Vancouver and Toronto has already started to rise.

In a press release Thursday, Soper highlighted that buyer demand remained low across the country, especially among first-time buyers and small investors. However, he noted that he anticipates those groups will re-enter the market as further rate cuts from the Bank of Canada will likely drive prices higher and incentivize first-time buyers to enter the market.

“First-time buyers, who are more sensitive to interest rates, are adopting a wait-and-see attitude. With home prices essentially flat and interest rates steadily declining, they perceive no penalty in postponing their purchase,” he said in the release.

“Similarly, small investors who typically buy condominiums to rent out and supply much of Canada’s rental housing, are also hesitant. Elevated rates have made the financials unworkable, with carrying costs surpassing rental income.”

According to the report, Royal LePage is forecasting aggregate home prices to rise 5.5 per cent in the fourth quarter of 2024 compared to the previous year.

“The market recovery, albeit uneven across the country, is well underway in a majority of markets. While we may not see significant price appreciation in the typically slower fourth quarter of this year, we believe our previous forecast will come to fruition in the anticipated early spring market of 2025,” Soper said in the release.

New lending rules

Last month, the Office of the Superintendent of Financial Institutions (OSFI) moved to ease stress test requirements for uninsured mortgages for those switching providers.

Soper told BNN Bloomberg he thinks the impact of the change will “be material.”

“If you look at our 64-city home price index….12 cities are brought into play if you will, where the median detached home price is between a $1 million and a $1.5 million. Places like Victoria, B.C. and Milton, Ontario, people either move up or first-time home buyers will be able to get mortgage insurance for what amounts to a basic single-family home,” he said.

“And that was one of the big challenges. Prices in Calgary are not prices in Toronto, so regulators have reacted, and I think it’ll be a material bump in that space.”

OCTOBER 14, 2024

Air Peace founder accused by US of submitting false documents

Wanted for allegedly laundering $20 million through US banks

(Bloomberg) -- Allen Onyema, the Nigerian businessman who owns the country’s largest airline, maintained his innocence after being indicted by US authorities on charges of obstructing justice.

Onyema allegedly submitted false documents to the US government in a bid to end an earlier investigation that resulted in charges of bank fraud and money laundering, according to the US Department of Justice, which issued a warrant for his arrest last week. The company’s chief of administration and finance, Ejiroghene Eghagha, was also charged for participating in the scheme.

The airline said that Onyema and his legal team have consistently cooperated with US authorities, in a statement posted on its official X handle late Sunday. “We remain confident that, through due process, the truth will be revealed, and our CEO and co-defendant will be exonerated,” the airline said. Onyema did not respond to a request for comment by email. 

The pair were first indicted in 2019 for allegedly moving more than $20 million from Nigeria through US bank accounts using false documents to show Air Peace was purchasing Boeing 737 airplanes. He then allegedly laundered over $16 million of the proceeds by transferring it to other accounts, the Department of Justice said. The latest indictment was issued on October 8.

“After allegedly using his airline company as a cover to commit fraud on the United States’ banking system, Onyema, along with his co-defendant, allegedly committed additional crimes of fraud in a failed attempt to derail the government’s investigation of his conduct,” said US Attorney Ryan K. Buchanan in a statement on Oct. 11.  

The case highlights the ongoing fallout from Nigeria’s longstanding and controversial currency policy, which the current government axed last year. 

Under the policy, Nigeria’s central bank pegged the naira at an artificially high level against the dollar for years, resulting in a parallel market where the dollar was freely traded. The gap allowed individuals with access to the central bank to make huge profits by obtaining dollars at the official rate, only to pass them back into the country at the unofficial rate. 

The US wants Onyema to forfeit at least $14 million held in three different bank accounts in the name of Springfield Aviation Company LLC, the firm allegedly used to perpetuate the fraud, according to the new indictment.

Onyema and Eghagha denied all the charges when they were raised five years ago in a statement prepared by their lawyers, A.O. Alegeh & Co. and emailed to Bloomberg in 2019.

“The allegations are unfounded and strange,” according to the statement.

Founded in 2013, Air Peace operates the largest fleet of aircrafts in Africa’s most populous nation. Onyema’s airline offers flights on numerous domestic routes in Nigeria as well as trips to other West African destinations and London. 

--With assistance from William Clowes.

OCTOBER 15, 2024

by  Solomon Ekanem

The Nigerian government has revoked its earlier decision to ground about 60 private jets in the country following the accumulated debts the operators piled up. In a new memo, the Federal Government has given private jet owners a 30-day ultimatum to pay their import duties or risk having their planes impounded.

• Nigerian government reverses decision to ground private jets over accumulated debts
• Private jet owners given a 30-day ultimatum to pay import duties or risk impoundment
• Stakeholders in the aviation sector laud the decision as it will sanitize the sector and boost GDP

According to the Punch, the verification exercise has been extended by one month, and will commence from Monday, 14th October 2024, to Thursday, 14th November 2024.

This decision has brought relief to the private jet owners as they battle to meet up with the government’s schedule concerning the accumulated import duty running into several billions of naira.

Recall the FG had recently threatened to impound as many as 60 private jets over the unpaid import duties. According to documents exchanged between the NCS and the Nigerian Airspace Management Agency, the enforcement exercise which would see many private jets grounded, was scheduled to commence on October 14th, 2024.

“We were supposed to ground the jets on Monday, but we got another letter from customs requesting that the action be suspended for another month, maybe that is to allow for settlement,” the acting Managing Director of NAMA, Umar Farouk told the Punch.

The Nigeria Civil Aviation Authority (NCAA), the nation's aviation regulating authority, had earlier this year, vowed that the federal government would not fail to sanction illegal flights and non-certified personnel in the industry. This followed the trend where private jet owners applied for licenses from aviation regulators to fly family or friends. The private jet operators were then accused of discreetly flying for commercial purposes without the knowledge of the regulator.

The Nigerian Customs Service, on observing this set back in the industry, threatened to ground some of the defaulting private jets owned by very important persons in the country. This led to a one-month verification exercise carried out by the Nigerian Customs Service (NCS) between June and July 2024.

A statement signed by the Customs Spokesperson, Abdullahi Maiwada, said the extension was to enable the NCS to meet with some of the operators who have expressed willingness to regularize their import duties.

“The NCS is committed to ensuring that all illegally imported aircraft meet the legal requirements, thereby promoting transparency and accountability in the aviation sector.”

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The statement added, “In light of this extension, the NCS encourages aircraft operators to take full advantage of the extended period to fulfil their obligations, avoiding sanctions that may arise from non-compliance after the deadline." the NCS said

Stakeholders in the aviation sector have lauded this development describing it as an idea that will not only sanitize the sector but also boost the aviation industry’s contribution to the country’s gross domestic product (GDP).

Olumide Ohunayo, industry analyst and director of research, Zenith Travels in a chat with BusinessDay, noted that the Customs and the Nigeria Civil Aviation Authority (NCAA) have lost funds due to the operations of the non-licensed private jets.

“Funds that would have accrued to the government and funds that would have increased aviation contribution to the GDP are leaking badly based on the rules and regulations that have been deliberately and consistently breached by the powerful who could go to the presidency to do their biddings,” Ohunayo noted.

OCTOBER 15, 2024

The Nigerian Customs Service (NCS) is poised to ground more than 60 private jets starting October 14 in a crackdown on unpaid import duties amounting to billions of naira, according to reports by local media.

Documents exchanged between the NCS and the Nigerian Airspace Management Agency (NAMA) - seen by The PUNCH newspaper - showed the enforcement follows a verification exercise conducted in June and July 2024 which revealed that many of the affected aircraft are foreign-registered and owned by influential business leaders and bank executives. Affected owners would be notified by the NCS, which expects to generate more than NGN260 billion naira (USD159.4 million) from the clamp-down. Aircraft that have left the country to evade scrutiny will also be grounded on their return. The NCS has written to the Nigerian Civil Aviation Authority (NCAA) and the Nigerian Airspace Management Agency (NAMA) to deny flight clearances until the overdue duties are paid, reports Politics Nigeria.

Despite some operators lobbying for intervention, the presidency reportedly declined to interfere. Notably, one bank reportedly paid NGN5.3 billion (USD3.2 million) to avoid the clampdown.

According to The Punch, aircraft on the list include Challengers 600s, Challenger 350s, Global 6500s, and Global 7500s.

ch-aviation has reached out to the NCAA and NAMA for comment.

OCTOBER 16, 2024

The Federal Government has rescinded its decision to ground 60 private jets owned by various individuals in Nigeria over unpaid import duty running into several billions of naira.

The PUNCH reported on Monday that the government through a directive from the Nigeria Customs Service to the Nigeria Airspace Management Authority was expected to have grounded the defaulting jets.

There are reports that duties are not being paid on the majority of private jets currently in the country with the NCS seeking to recover unpaid import duties running into several billions of naira.

The development reportedly led the NCS to carry out a one-month verification exercise on all private jet owners in the country between June and July.

The latest decision to ground the private jets is coming almost three months after the NCS verification exercise.

But in an exclusive chat with the acting Managing Director of NAMA, Umar Farouk, he said the jets are yet to be grounded because the NCS sent the agency a new letter requesting another 30-day window for the debtors to clear their import duties.

“We were supposed to ground the jets today (Monday) but we got another letter from customs requesting that the action be suspended for another month, maybe that is to allow for settlement,” Farouk stated.

Also, a statement signed by the spokesperson of the NCS, Abdullah Maiwada, and sent to The PUNCH, confirmed the acting MD’s position, saying the customer service had extended the verification exercise by a month.

Maiwada said the extension was to further engage operators who had expressed willingness to regularise their import duties.

“The Nigeria Customs Service wishes to inform the general public, particularly operators of privately-owned aircraft, that the verification exercise for the recovery of import duties on illegally imported private aircraft has been extended by one month, from Monday, October 14, 2024, to Thursday, November 14, 2024,” the NCS stated.

OCTOBER 16, 2024

Construction pace needs to rise by 'six times at least,' Concordia researcher says

Average monthly rent could reach $7,500 in Vancouver and $5,600 in Toronto by 2032 if current trends in construction and population growth continue, a study by Concordia University and private equity real estate company Equiton projects.

The research, by Erkan Yönder, an associate professor at Concordia’s John Molson School of Business, used machine learning to model growth in rents using housing and census data and immigration and population projections. The model suggests “rents will continue to grow rapidly” if both the addition of new supply and population growth remain at status quo levels, indicating the need for a massive increase in building.

It shows average rents in Toronto hitting $4,100 by 2027, up from $3,250 in March 2023, and reaching $5,600 by 2032. Average rents in Vancouver are projected to reach $5,200 by 2027 and $7,750 by 2032.

The research is intended to show how data can be used to address Canada’s housing crisis by identifying specific neighbourhoods where demand and prices could grow the most.

It also serves as a call to action, pointing out just how much more construction is needed overall. “We need to build more and more,” Yönder told Yahoo Finance Canada in an interview, ”like six times at least” the current pace of new development.

“I think there is no government who could take this burden on its own,” Yönder said. “So you really need the capital markets” in the form of REITs, developers and investors, he says.

Low vacancy disrupting supply/demand dynamics

The extent of Canada’s housing crisis has been well documented, with shelter inflation remaining a concern at the Bank of Canada even as many other indicators have returned to acceptable levels. A recent report from the Canadian Centre for Policy Alternatives notes that the average rent is not affordable for minimum wage earners in nearly every urban Canadian neighbourhood.

Vacancy rates are currently so low that “the traditional relationship between economic factors is disrupted,” the Concordia study says, with demand so high that rents are likely to keep rising even when more supply is initially added. The model shows rents starting to drop only when annual completions reach about 11 to 12 per cent of existing housing stock in a given area. The report notes that annual completions in the Toronto area were 1.1 per cent in 2023.

“In other words, annual supply increases must reach 10 times the current levels (compounded over time) to meet the excess demand present in the market,” in Toronto, the report says.

Average rents in Montreal are projected to rise from $2,100 (in March 2023) to $3,325 by 2027 and $4,325 by 2032. In Calgary, where average rent was $1,900 in March 2023, the projections show it reaching $2,200 by 2027 and $2,600 by 2032.

Although the projected figures are hundreds or thousands of dollars more than current average rents, recent history shows that the potential growth (for example, increases of 26 per cent in Toronto and 50 per cent in Vancouver by 2027) is highly possible. Average rents in Canada increased by 30.8 per cent between April 2021 and June of this year, according to Urbanation and Rentals.ca data. In Toronto, rents went up 34.6 per cent during that period, and 40.8 per cent in Vancouver.

Though those average city rents are stark, Yönder says the solutions need to be specific to each neighbourhood, “because some places are heating up and some places are not heating up that much.” He argues for zoning rules and regulations tailored to specific areas that projections suggest will see rising demand.

“Our findings highlight the importance of developing location-based policies and the urgency of easing supply restrictions. It is increasingly clear that achieving a healthy supply/demand relationship will depend heavily on the private real estate sector, more specifically those capable of large-scale development.”

John MacFarlane is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jmacf.

OCTOBER 16, 2024

By Olasunkanmi Akinlotan

The Federal Ministry of Aviation and Aerospace Development has directed foreign airlines flying in Nigeria to patronise Nigerian caterers.

This directive is coming barely five months after the Minister of Aviation, Festus Keyamo, at a forum in May in Riyadh, Saudi Arabia, appealed to foreign airlines to patronise local content, specifically Nigeria’s catering service.

The minister believes that the directive is consistent with the principles of reciprocity outlined in the Bilateral Air Services Agreement that aims to boost Nigeria’s local economy.

This was contained in an internal memo exclusively obtained by our correspondent on Tuesday, in Abuja.

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The memo from the Ministry of Aviation and Aerospace Development directed the Nigeria Civil Aviation Authority to convey the minister’s directive to the foreign airlines, adding that enforcement will commence from January 1, 2025.

The memo, dated October 15, 2024, was signed by H.E Ejibunu, a director overseeing the office of the Permanent Secretary of the ministry.

The memo reads, “l am directed by the Minister of Aviation to convey to you his decision to mandate all outbound flights from Nigeria, especially foreign airlines to patronise local caterers for onboard meals. Directive of the minister to foreign airlines on onboard meals 2.

“Consequently, you are hereby directed to convey the decision to all foreign airlines for strict compliance beginning from January 1, 2025. Thank you.”

When contacted to speak on the development, President of the Association of Foreign Airlines in Nigeria, Kingsley Nwokoma, described the directive as a welcome development, adding that foreign airlines were already lifting onboarding foods from NCAA-approved food vendors.

Nwokoma stressed that “Maybe the directive was just for emphasis because most foreign airlines have already been lifting food from our local NCAA-approved food vendors.

“If you ask the local airlines, they will attest to this but either way, this is a welcome development, and just like I said earlier foreign airlines are already doing as directed to promote our own local delicacies and contents.”