AUGUST 19, 2023

The Federal Government has drafted the national business processing outsourcing strategy to nip in the bud the growing level of brain drain, popularly known as Japa in the country. 

Kashifu Inuwa Abdullahi ,Director-General of National Information Technology Development Agency,NITDA, ,who disclosed this at the Cisco Incubation and Innovation launch, also said the development was necessary in order to make productive use of young Nigerians to enable them match global demands. 

He said there are 16000 young Nigerians engaged in business outsourcing all over the world, but the government is desirous of multiplying this number through the business processing outsourcing strategy . 

According to him, the strategy will also ensure that Nigeria overtakes India as the global preferred outsourcing destination through its talented ,creative and energetic young population. 

He recalled the recent Memorandum, if Understanding the Federal government had with Cisco on improved public digital transformation, adding that the launch of the company’s innovation and incubation hub would deepen Cisco’s interest in Nigeria’s technological advancement through requisite investment and empowerment of start-up companies in the country. 

He also said the launch of the hub aligns with the agenda of President Bola Tinubu’s administration to open up the country’s economy through digital prospect. 

Cisco, he said, had already trained over 410,000 Nigeria, adding that the coming on stream of the company’s academy and other agreements the country have with global technology companies would put-paid to the  country’s meeting its 95percent digital literacy target in few years. 

Speaking, Guy Diederich, Senior Vice President and the Global Innovation Officer at Cisco, expressed his company’s interest in deepening digital transformation in Nigeria on the strength of active young population. 

AUGUST 19, 2023

With the August bank holiday fast approaching, some Britons may be planning to head to the airport for a staycation break or to go abroad.

There are some travel rules all holidaymakers need to follow when heading to the airport. This includes restrictions on carry on liquids and weight and size restrictions on baggage.

Carry on baggage can be particularly restrictive and getting this wrong could incur costly fees at the check in desk.

Here are the cabin bag rules for Ryanair, easyJet, British Airways and Jet2.

All flights include one small bag, with a handbag or laptop bag being the optimal size.

It must be no bigger than 40x20x25cm and fit under the seat in front of you. Holidaymakers can pay extra for a second cabin bag which must be less than 10kg and 55x40x20cm.

If that's not enough room, checked bags can be purchased at 10kg or 20kg.

Travellers get one free carry on bag that must be less than 45x36x20cm.

Larger cabin bags can be booked for an additional fee and they must be less than 56x45x25cm, including any handles and wheels.

Plus members and those who have booked a FLEXI fare can bring on the second cabin bag free of charge.

Jet2

Jet2 allows travellers to bring two cabin bags on board, free of charge.

The main bag must be no larger than 56cmx45cmx25cm and weigh less than 10kg. A small second bag, such as a handbag, can also be brought on board and it needs to fit under the seat in front.

British Airways

BA also allows holidaymakers to bring on board two bags, included in the price of the flight ticket.

A larger bag of up to 56x45x25cm can be taken on board, however this may need to go into the hold on busier flights.

A small personal bag can also be taken on board. This is guaranteed to go in the cabin.

AUGUST 19, 2023

By Sunday Michael Ogwu

The President of the Natural Oil and Gas Suppliers Association of Nigeria,  Bennett Korie, has said the 7.5% value-added tax (VAT) on diesel has pushed pump prices to N900 at the least and N950 at the maximum across Nigeria.

He said this during a press briefing in Abuja while addressing the economic situation in the country which has deteriorated due to marketers’ inability to import diesel as they presently cannot access dollars. 

Note that the exchange rate between the naira and dollar closed last week quoting for as high as N955/$1 on the black market. 

Korie stated that the foreign exchange crisis, as well as the 7.5% VAT on diesel, have pushed prices from N650 per litre to over N900 per litre.

Korie also addressed the issue of road infrastructure on the Port-Harcourt-Warri road, which further compounds the problems at hand.

He said, “For two weeks now, our tankers have been on that road; you can’t cross it. Our roads are bad, our trucks are trapped on the Warri-Abuja road for two weeks, and our drivers are kidnapped, and killed, while others suffer.”

AUGUST 19, 2023

Ibom Air has announced that it has become a full member of the International Air Transport Association.

A release by the General Manager of Marketing, and Communication, Ibom Airlines Limited, Aniekan Essienette and made available to newsmen in Uyo on Friday indicates that the airline was received into the body by the Director General of IATA, Mr. Willy Walsh, in a letter dated 15 August 2023.

Reacting to the development, the Chief Operating Officer of Ibom Air, Mr. George Uriesi, according to the release said, “We are delighted to have completed the administrative processes and to now become a full member of IATA.

“Apart from the multiple benefits Ibom Air stands to gain as a member of the Association, our membership particularly offers a whole new world of cooperation opportunities in the international airline community.

“We intend to tap fully into these as we expand our footprint into the region and continent”.

AUGUST 20, 2023

BY CHARLOTTE SEET

Nigerian carriers are struggling to obtain hard cash to pay for the expensive insurance premiums.

SUMMARY

•  Nigerian carriers are facing a growing problem of being unable to pay for aircraft insurance and other required services due to a severe shortage of foreign exchange.
•  The Central Bank of Nigeria's decision to float the naira and the decline in foreign imports and exports have exacerbated the problem, as airlines have limited access to US dollars at a favorable exchange rate.
•  The Nigeria Civil Aviation Authority threatens to ground any uninsured aircraft and issue penalties against airlines and aviation service providers.

Amidst a consistently weakening local currency and a severe shortage of foreign exchange in Nigeria, paying for aircraft insurance coverage and other services has been an uphill battle for many Nigerian carriers. And on top of this problem, the Nigeria Civil Aviation Authority threatens to ground uninsured aircraft and will issue penalties against airlines and aviation service providers.

Insurance is a growing problem

Nigerian carriers typically sell their tickets in naira but are expected to pay for aircraft insurance premium payments, aircraft maintenance, and spare parts in US dollars. But a couple of months ago in June, the Central Bank of Nigeria floated the naira and directed commercial banks to only sell foreign exchange at market-determined rates, causing a significant shortage of foreign currency within the country as investors are unimpressed.

When coupled with how foreign imports and exports in Nigeria have steeply declined in recent years, the value of the naira could only spiral downward, and airlines have little to no access to the US dollar at a favorable exchange rate. And without much of the US dollar, the number of airlines being unable to pay for aircraft insurance and other required services continue to increase at an alarming rate.btain the hard cash required, as the Chief Operating Officer of Ibom Air, George Uriesi, highlights:

"Insurance is a growing problem, and because we cannot fly an uninsured aircraft, we have no choice but to hang in there and source for the dollars to do the insurance. The losses we accumulated were mainly dollar-based components, when you are procuring dollars above the then CBN rate, you apply when it was N400 to a dollar and you get it at N680. The difference is massive.”

Sanctions will soon be deployed

As more aircraft fall under the uninsured category, the Nigeria Civil Aviation Authority issued a directive on August 11th addressed to all airlines and accompanying aviation service providers, signed by the Director General of Civil Aviation, Captain Musa Nuhu. According to the directive, any aircraft operated by any local airline without a valid insurance cover will be grounded.

The valid insurance cover required means the aircraft must be insured for not less than three months, and airlines and aviation service providers are to submit copies of valid insurance certificates, evidence of premium payments, and other policy-related documents to the authorities to avoid such groundings. It's unsure if the authorities will issue a similar directive for any inadequate aircraft maintenance, although given the same alarming trend, the likelihood is possible.

The directive also indicates that any airline and aviation service provider not complying with Part 18.14.11 of the Nigerian Civil Aviation Regulations - which came into effect on July 10th this year, will result in immediate sanctions. Captain Nuhu emphasizes the sanctions, in addition to the aircraft grounding, will include heavy penalties enforced on the defaulters, albeit the penalties were not precisely detailed.

Bottom line

While the grounds and sanctions are justified for aviation safety, the overall outlook for Nigerian carriers is not any better with this new threat. With the Nigerian aviation industry still struggling to regain momentum, the current obstacles could result in the collapse of some airlines as more grounded aircraft ultimately means fewer revenue flights operated.

AUGUST 21, 2023

The controversial plan by the government of former President Muhammadu Buhari to float a new national carrier, Nigeria Air, in conjunction with Ethiopian Airlines has again suffered a fresh setback as the Chief Judge of the Federal High Court, Justice John Tsoho, has cancelled the decision to transfer the suit of Airline Operators of Nigeria (AON) against Nigeria Air to Abuja, citing fundamental flaw in the judgement given by Justice Omotosho to the effect that counsel to Nigeria Air concealed some facts, which rendered the judgement null and void

The matter is now to continue in the Federal High Court in Lagos.

The letter emanating from the Chief Judge’s Chambers addressed to Dr Alex A. Izinyam(SAN), PhD, OFR, resolved that the matter is now to continue in the Federal High Court (FHC), LagosThe Patagonia Desert- A 4k Aerial Film of Argentina

The letter titled Re: Judgement In Suit No. FHC/ABJ/CS/271/2023 between the Registered Trustees of the Airline Operators of Nigeria and 5 ORS V. J.T. Tsoho drew their attention to the non-disclosure by the counsel’s clients that there was a pending motion for the transfer of the case while making an administrative application to the same effect.

The letter, signed by the Chief Judge, Honourable Justice John T. Tsoho, OFR, read: “Please refer to your letter dated May 4, 2023, on the above subject matter.

It has reported the delivery of Judgement in the aforementioned suit by Hon. Justice J.K. Omotosho on April 27, 2023, dismissing the said suit for lack of a cause of action and abuse of court process.

“The Plaintiffs in the said suit challenged the 1st defendant, J.T. Tsoho, Chief Judge of the Federal High Court, who acted in his Judicial capacity by transferring Suit No. FHC/LICS/2159/2022 from Lagos to Abuja Judicial Division.

“While noting the dismissal of Suit No. FHC/ABJ/CS/271/2023, may I humbly draw your attention to my earlier letter addressed to you, dated March 9, 2023, particularly to paragraphs 8, 9, and 10 thereof regarding Suit No. FHC/L/CS/1999/2022?

This is to the effect that non-disclosure by your clients that there was a pending motion for the transfer of the case while making an administrative application to the same effect rendered the application fundamentally flawed.

“As a result, I resolved to reverse the transfer of the case, but for the pendency of Suit No. FHCIABJ/CS/271/2023.

“Therefore, following the dismissal of Suit No.FHC/ABJ/CS/271/2023 by Hon. Justice Omotosho, the transfer of Suit No. FHC/L/CS/2159/2022 is hereby cancelled.

AUGUST 22, 2023

BY  Iva Poshnjari, BNN Bloomberg

The Open Canada is sitting in one of the largest housing bubbles of all times Strategist
Phillip Colmar, managing partner and global strategist at MRB Partners, joins BNN Bloomberg for his view on the Canadian market and economy. Colmar warns on Canada's housing bubble and adds Canada is a weak link to the global economy. He is also cautious on the TSX.

The Canadian housing market is at high risk of unravelling, according to one expert.    The level of debt that Canadians have taken on in comparison to their incomes has put many in a precarious position should mortgage rates continue to rise — which is likely, Phillip Colmar, partner at Global Strategist at MRB Partners, told BNN Bloomberg in an interview on Tuesday.    “Canada is probably sitting on the largest housing bubble of all time,” he warned.    Colmar argued that the inflated home prices in Canada are a result of two decades' worth of easy money supplied by the Bank of Canada’s monetary policy for numerous reasons. At present the moment, he sees risk in mortgage rates climbing as Canadian bond yields are dragged up, particularly at a time when debt-to-income ratios are sky high.    “The worst part for a housing bubble is when you have [a] credit bubble underneath it,” Colmar warned.    “The amount of Canadian leverage into the system versus incomes is pretty astronomical — and we’ve seen debt serving going up dramatically.”   While the Canadian banks are doing their part to stop the housing market from toppling over, Colmar said he believes it inevitably will.    “There is definitely a risk here that if mortgage rates go higher or unemployment were to rise or we hit the next recession, then this thing does end up in a deleveraging cycle,” he said. 

AUGUST 22, 2023

The certification process of Nigeria Air (NWB, Lagos) - the federal government's nascent joint venture with a consortium led by Ethiopian Airlines - is expected to resume in September following the swearing-in on August 21 of new Aviation Minister Festus Keyamo, insiders have told ch-aviation.

It is hoped that Keyamo will end the current limbo surrounding Nigeria Air, whose finalisation of certification awaits the resolution of a legal challenge before the Abuja High Court from five private carriers under the umbrella of the Airline Operators of Nigeria (AON). They secured an interdict against the government in November 2022, suspending the creation of the new flag carrier, citing anti-trust grounds. However, those in the know believe Nigeria Air's stalled process towards obtaining an air operator's certificate (AOC) will continue in early September, as everything has been prepared.

Ethiopian Airlines Chief Executive Officer Mesfin Tasew recently told Bloomberg TV that Nigeria Air would commence operations in October 2023.

It is hoped, industry sources told ch-aviation, the new aviation minister will calm political forces that sought to scapegoat former Aviation Minister Hadi Sirika for chartering a Nigeria Air-branded Ethiopian B737-800 for a demonstration flight. The establishment of Nigeria Air as a 51/49 public-private partnership between the federal government and a consortium of Nigerian investors led by Ethiopian Airlines is overseen by the Infrastructure Concession Regulatory Commission (ICRC), an agency of the Nigerian federal government responsible for the development and implementation of PPPs.

A senior advocate, columnist, human rights activist, former Minister of State for Niger Delta, and Federal Minister of Labour and Employment under ex-President Muhammadu Buhari, Keyamo was appointed in his new portfolio by the new President Bola Tinubu on August 16, 2023. He is described as a stalwart of the ruling All Progressives Congress (APC).

According to the Nigerian Tribune newspaper, apart from guidance relating to the nascent national carrier, Keyamo will have to address the Nigerian aviation and aerospace sector's challenges, which include inadequate infrastructure, safety concerns, shortage of a skilled workforce, regulatory issues, limited funding, security threats, inefficient airspace management, lack of connectivity to remote regions, an ageing fleet, and corruption, collectively hindering the growth, safety, and sustainability of the industry.

Meanwhile, the Nigerian Civil Aviation Authority (NCAA) has been getting its house in order ahead of a scheduled Universal Safety Oversight Audit Programme (USOAP) audit of the NCAA by the ICAO at the end of August. audit of the NCAA by the International Civil Aviation Organisation (ICAO) at the end of August. The NCAA has been vocal in applying and adjusting regulations, including upping minimum fleet sizes, insurance coverage, and suspending operations of MaxAir (Nigeria) (VM, Katsina) after a safety audit.

AUGUST 23, 2023

By Seun Opejobi

Airline operators are considering an increment in the price of flight to N250, 000.

Spokesperson for Airline Operators of Nigeria, AON, and Chairman of United Nigeria Airlines, Obiora Okonkwo, said the cost of a one hour flight from Lagos to Abuja might rise to N250, 000.

Okonkwo dropped the hint while appearing on Arise Television, Morning Show on Wednesday.

The AON spokesman emphasized the need for the Central Bank of Nigeria, CBN, to create a window for local airlines to access foreign exchange.

According to Okonkwo: “If you think tickets are expensive, then you probably don’t appreciate the sacrifices made by local operators.

“If we have to charge the fares, the way the costs are increasing every day, we should be paying not less than N250,000 from Lagos to Abuja.”

He also charged the Aviation Minister, Festus Keyamo, to collaborate with other governmental bodies to identify and resolve issues responsible for problems in the aviation sector.

On the issue of foreign exchange challenges, Okonkwo said: “You have naira and you can’t convert it to the dollar.

“So, the solution to this is for our minister to understand that we need a special window with the CBN to access foreign exchange.”

AUGUST 24, 2023

More Nigerians were granted sponsored study or student visas by the United Kingdom as the number almost doubled in one year, according to new official immigration data.

The data from the British government on Thursday shows that of the top five nationalities granted sponsored study visas, Nigerian nationals saw the most significant percentage increase, up 73 per cent from 33,958 in the year ending June 2022 to 58,680 in the year ending June 2023.

This means that 24,722 Nigerians were granted sponsored study visas within the period under review.

According to experts, Nigeria’s high intellectual capabilities, cheap labour, sizeable working population, high diaspora remittances, and the withdrawal of the UK from the European Union are why the UK is scouting for Nigerians.

“They are looking for Africans not out of love but for the love of skills, especially those that can prepare them ahead of the future,” Kemi Ogunkoya, a Lagos-based leadership development strategist, said.

She added that Nigeria, which has a large population, has a lot of educated people. “So, it is more about the prosperity of the country and economic benefit they will derive.”

According to Jennifer Oyelade, director of Transquisite Consulting, European countries will continue to look for more Nigerians to come into their region because it financially works best for them.

“Secondly, they believe Nigerians will be able to fill the unemployment gaps caused by the great resignation across Europe,” she said.

A recent article by Matthew Page, a non-resident scholar at the Carnegie Endowment for International Peace, noted that British independent schools, especially private boarding ones, view Nigeria as an increasingly attractive market.

“Most of them warmly welcome Nigerian students and overwhelmingly see them as better-than-average performers and net contributors,” he said.

The UK, one of the most advanced economies in the world and top places to study, operates an immigration system underpinned by the principle of visa sponsorship.

The sponsor for immigration purposes is the educational institution where the student will study, and the visa is issued for a particular course.

In 2019, the UK updated its International Education Strategy. The update reaffirmed the government’s goals of increasing the value of its education exports to £35 billion ($48 billion) and hosting at least 600,000 international students annually by 2030.

The strategy commits to previously established goals for foreign enrolment growth, which new immigration routes and work opportunities for international students have replaced. It intends to create clearer pathways to immigration.

This growth will be achieved through the Graduate route, launched in July 2021. The course will allow eligible students to stay in the UK to work or look for work for two years (three years if studying at PhD level) after they have completed a degree in the UK. Others are high-potential individual visas, global talent visas and scale-up visas.

India, Indonesia, Saudi Arabia, Vietnam, Nigeria, Brazil, Mexico, Pakistan, Europe, China, and Hong Kong are the markets spotlighted as priorities for the UK.

The minimum 600,000 target was achieved in 2021 as the total number of international students hit 605,130 and 679,970 in 2021 and 2022, respectively.

The immigration data also revealed that Africa’s most populous nation had the highest number of dependents (67,516) of sponsored study visa holders in the year ending June 2023, more than twice the number (31,791) ending June 2022.

“Indian nationals had the second highest number of dependents, increasing from 24,858 to 43,552. The increases for Nigeria and Indian dependents reflect the increases seen in main applicants and are fairly in proportion to those changes,” it said.

However, the number of sponsored study visa holders and their dependents might decline next year because the UK’s recent visa policy restricts the number of families for international students due to increased net migration.

“The UK is a top destination for the brightest students to learn at some of the world’s best universities. But we have seen an unprecedented rise in student dependents being brought into the country with visas,” Suella Braverman, UK’s home secretary, said in May.

She said it is time for us to tighten up this route to ensure we can cut migration numbers and meet the government’s pledge to the British people to cut net migration.

“Students with families from Nigeria will most likely apply to study in Canada, Germany, France, Finland or Australia next year,” @OgbeniDipo tweeted via his Twitter handle.

“Europe has a population problem as it has an ageing population. This restriction will shed more light on other countries looking for skilled workers,” Toyyib Adelodun, a UK-based immigration consultant, said.

He said most of the tuition fees in European countries are not expensive, but the language barrier is the only problem. “But if Nigerians are determined to stay, they can overcome that problem.”

High poverty, unemployment, poor human capital development, insecurity and poor education are significant reasons many Nigerians are leaving the country in search of greener pastures.

Seeking higher education abroad has become a significant means of permanent emigration.

Ogunkoya said the ‘japa’ wave (a Yoruba word for “run quickly”) will continue to widen the talent shortages, and even the quality of talent left behind will be a problem for companies.

“So it is heavily dependent on the policies of the government. They must be more proactive by developing a strategic national plan to develop our human capital and improve our economy over the next five or ten years. Otherwise, organisations will be in a losing battle,” she added.

According to Ikemesit Effiong, head of research at SBM Intelligence, up until now, the government’s approach towards engaging with the Nigerian diaspora has been hazardous at best or non-existent at worst.

“The fact that they left does not mean that we have to break up any engagement with them. We need a deliberate engagement strategy to attract skilled talents from Nigeria. We have to keep that engagement going so that their only connection in Nigeria will not be only sending remittances to their loved ones,” he said.