Archive for nigeriang

Foreign affairs minister slams former U.S envoy’s essay

Foreign affairs minister slams former U.S envoy’s essay

The minister of
Foreign Affairs, Odein Ajumogobia, has condemned a recent essay on
Nigeria by a former United States envoy to Nigeria, John Campbell.

In the essay, which
was published last week, Mr Campbell predicted that the 2011 polls
could tear Nigeria apart and that it could lead to post-election
sectarian violence, paralysis of the executive branch and even a coup.

“I have just read
with dismay, excerpts from Ambassador John Campbell’s latest essay on
Nigeria, entitled “Nigeria: Dancing on the brink” published in local
and international electronic and print media. It contains his doomsday
analysis of Nigeria’s 2011 elections and their aftermath,” Mr
Ajumogobia said at the weekend.

He said it was
unfortunate that the former diplomat, unlike his several illustrious
predecessors and worthy successor, “appears to take delight in inciting
instability in Nigeria with his entire thesis based on a worst case
scenario and seeming relish in willing it to occur.

“Perhaps Ambassador
Campbell seeks credibility for his suspect claim to in-depth knowledge
and expertise on matters concerning Nigeria,” the minister said.

Limited understanding

Mr Campbell’s
analysis, he said, is based on an obviously jaundiced and clearly
limited appreciation of the facts and dynamics of the current Nigerian
politics.

“This disturbing commentary is not only divisive but is also irresponsible and dangerous,” the minister said.

He said Nigeria is
committed to organizing credible elections in 2011 and in spite of the
acknowledged and self-evident challenges posed by the proposed INEC
timetable, the process is moving forward in a credible and transparent
manner.

“Ambassador
Campbell and his ilk would do well, if unable to add value, to keep
silent and observe as Nigeria takes definite steps to consolidate her
12 year old democracy and perhaps try to seek relevance in other more
constructive ways,” he said.

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Joy and Jazz in South Africa

Joy and Jazz in South Africa

With a line up of
over 30 International jazz artists and home-grown talent, the 2010
annual Standard Bank Joy of Jazz festival kicked off on a high note in
the Newtown Precinct of Johannesburg, South Africa on August 26 and ran
for three days, closing on August 28.

The entry fees
ranging from 330 to 500 South African Rands, and the chilly winter
wind, were not enough to stop Jazz enthusiasts from catching a glimpse
of their favourite musicians. There were also a range of other musical
styles, from Soul to R’n’B and traditional West African rhythms – but
all from a Jazz perspective.

The event opened at
the Dinaledi stage with the Gauteng Jazz Orchestra, Auriol Hays
followed by up and coming R’n’B singer, Brian Temba. Rahsaan Patterson
closed off with a stellar performance, showing off his outstanding
vocal abilities on his own songs and a few surprise covers.

A surprisingly
large number of young people in attendance on the opening night were at
home with the vibes from the Gauteng Jazz Orchestra. South African
homeboy Brian Temba, got the ladies screaming at the top of their
voices with his good looks, sex appeal and rich R’n’B/Soul sound.
American Soul singer, Rahsaan Patterson – who got the house singing
along with him when he performed a cover of Michael Jackson’s ‘Human
Nature’ and Sade’s ‘Stronger Than Pride’ – also got much love from the
crowd.

Enter the Legends

After that
well-received opening, the second night consisted of performances on
four stages by the likes of sultry Jazz diva Lalah Hathaway; Wassoulou
queen, Oumou Sangare; Kim Waters, Four Play, Poncho Sanchez and Ravi
Coltrane. They all graced the different stages simultaneously, thus
making it easy for fans of the respective artistes to attend separate
concerts.

Many headed towards
the Mbira stage where the Malian songstress Sangare, clad in a long,
cream coloured skirt in the Malian style, was holding sway. Before
stepping out on stage her drummers, back-up singers and dancers warmed
things up for the fired-up audience.

Although she
performed at the Mbira Stage, which had no sitting arrangements, as
guests had to either stand or sit on the lush red carpet which covered
the entire indoor location, it did not in any way stop the fun. And the
Malian deservedly emerged as the star attraction of the night as well
as the following night. One advantage provided by the lack of seats at
the Mbira stage was that it gave guests, who were predominantly
Caucasians, ample opportunity to express themselves through dancing,
thus savouring every minute of the evening.

The 42-year-old
Sangare stole the show on the night. Her vibrant and energetic dancers
also added colour to the event. She also introduced the audience to
tracks of her recently released fifth album, “Seya” which dwells on
issues concerning marriage, forced love and women emancipation.

Singing her
signature Wassoulou music, the ecstatic crowd was excited to see the
French and Bambara speaker take pains to explain the themes of some of
her songs in halting English, even in the absence of an interpreter.
Music is a universal language, they say, and Sangare’s fans didn’t seem
to mind.

As the night drew
to a close, the guests, unsurprisingly, refused to go home and the
delighted singer could not help but show appreciation for her devoted
fans by rendering more of her hit songs.

Outside the main
stage venue, songs by the late Fela Anikulapo-Kuti could be heard
drifting from not too far away – from the free-entry gigs at Sophiatown
and Nikki’s Oasis venues, where upcoming acts like Quiet Storm and
Pebbles held sway.

Japanese Jazz, Irish folklore

Some in the
audience confessed to not having heard about Japanese Jazz musician
Sadao Wantanabe until this year’s festival. But they would not forget
him after seeing his performance. Wantanabe, a 72-year-old saxophonist
and flutist, instantly struck a chord with the audience. As with
Sangare, the septugenarian also performed at the Mbira Stage, where he
left the audience enthralled by his dexterity. His rendition of the
popular traditional South African folk song, “Shosholoza” got the crowd
screaming for more. From the beginning to the end, Wantanabe’s festival
appearance was filled with surprises.

With his
instrument, Johannesburg based flutist, Wouter Kellerman, turned on the
heat with his uncanny ability to fuse classical and contemporary
sounds. Kellerman, who perfomed at the closing ceremony of the 2010
FIFA World Cup, experimented with different music genres during his
set, from Irish folklore to classical songs.

Climax

If the opening two
nights of the festival were eventful, the last day was action-packed.
It was announced over the radio that tickets were sold-out, but this
was not in the least a surprise, as the line-up was star-studded.

On parade were
South African pianist Kyle Shepherd, who opened the Bassline stage with
her unique African-inspired jazz, as well as her countryman, vocalist
Nhlanhla Nciza, who was recording a live video at the Market Theatre.

Hathaway and
Patterson even got to share a stage and performed to a full house whose
mood was not in the least dampened by a series of technical hitches,
perhaps not uncommon for a live show of such magnitude. What was
however unusual, at least by South African standards, was the sudden
blackout that occurred midway through Ravi Coltrane’s performance. The
audience however responded by bringing out their cell phones and
cigarette lighters to illuminate the venue, while screaming for more.
The blackout was temporary, and the show did go on.

In the end, the 2010 Joy of Jazz Festival lived up to its billing;
even though the rest of the African continent was not well represented,
save for the Malian Sangare and a handful of South African acts. One of
the organisers, Peter Tladi, however disclosed to NEXT that plans are
underway to ensure that the continent is better represented next year,
with a view to making the Standard Joy of Jazz Festival a truly African
event.

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Aviation experts disagree on navigational charges

Aviation experts disagree on navigational charges

Industry
professionals in Nigeria’s aviation sector hold divergent views on the
‘pay as you go’ mode of payment recently introduced by the Nigerian
Airspace Management Agency (NAMA) for collecting terminal navigational
charges from domestic airlines.

Some
experts favour the initiative, but other stakeholders in the sector see
the development as cumbersome and an additional tax on the highly
levied air tickets.

The
‘pay as you go’ fuss, which for two weeks resulted in series of
complaints and counter reactions from some airlines, saw to the
grounding of Arik Air’s 120 domestic flights in one day, and led to the
introduction of N100 additional ticket charge by Aero Contractors,
which the carrier described as “NAMA Tax.” Explaining that the
objections of domestic carriers to the new charges are “unnecessary,”
Lateef Lawal, an analyst who has spent over two decades in the
country’s aviation industry and the editor of Nigerian Aviation News in
Lagos, said that the airlines are looking for ways to evade the payment
for services rendered to them by service providers in the sector.

Mr.
Lawal argued that all domestic carriers in Nigeria jointly owe the
Federal Airports Authority of Nigeria (FAAN) and the Nigerian Airspace
Management Agency (NAMA) a “whooping N10 billion if not more,” out of
which over N4 billion is owed NAMA.

“Prior
to 1st September 2010 when the management of NAMA took the bull by the
horns after the directive of the Minister of Aviation for aggressive
revenue and debt recovery drives, there had been several meetings
between NAMA officials and those of the debtor airlines on debt
reconciliations.

Some attended others blatantly refused to attend,” he said.

According
to Mr. Lawal, a Ministerial Committee was set up to look at all the
issues at stake and come up with recommendations on the ways out and
members of Airline Operators of Nigeria (AON) were part of the
committee along with ministry officials and others from parastatals in
the industry.

“After
the committee’s two-week sitting they came up with far reaching
recommendations which included the spreading of the old debt owed by
the airlines since 2005 to June 2010 to be spread across 36months while
they should henceforth make it a point of duty to always pay for
services rendered to them,” he said, adding “this recommendation among
others was endorsed by the Minister for implementation, which was what
NAMA started on 1st September this year.” He said that it is surprising
to see an about turn by the airlines that were part and parcel of the
report to which their representatives at the Ministerial Committee
Meeting appended their signatures.

Different views

However,
Gabriel Olowo, another expert in the sector and chief executive of
Sabre Travel Network, said that the answer to the ongoing palaver is to
“abolish ticket sales charge.” Mr. Olowo posited that the Airline
Operators of Nigeria had in the 90’s agreed to give five per cent of
what they get from the sales of air tickets to the government to
enhance the aviation sector, adding that the contract should replace
whatever levy is placed by any government organization on airlines.

“We
ordinarily should not speak on the matter waiting before the Supreme
Court of Nigeria; but throwing light into the history of Ticket Sales
Tax, Airline Operators of Nigeria (AON) during early 90’s had a
gentleman agreement with government to contribute five per cent of all
ticket sales for aviation development having appreciated the financial
needs of our airports and airspace,” he said.

“While
this subsists, it is expected to replace and substitute whatever charge
these institutions may have legitimacy to charge. There exists a
sharing formula for the fund by the agencies.” Mr. Olowo said that it
was after the agreement that the Nigerian Civil Aviation Authority
(NCAA) got its independence and the Federal Airports Authority of
Nigeria (FAAN) commenced taxation on airlines, stressing that the
levies on domestic airline tickets are exorbitant.

“NCAA
thereafter became autonomous and FAAN was collecting passenger service
charge (PSC) known as airport tax, in addition to its Landing and
Parking fees. NAMA saw the sense also in collecting Terminal
Navigational fees which tantamount to eating your cake and wanting to
have it as this amounts to double taxation,” he said.

“As you are already aware, Airline ticket contains too many taxes
(TST,PSC,VAT) and if we are serious about having strong and thriving
Nigerian carriers, additional tax burden on ticket in whatever
nomenclature will simply turn the airlines to revenue collecting agents
in the face of their already difficult environment of business.”

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Report unethical practices, says Stock Exchange boss

Report unethical practices, says Stock Exchange boss

The management of the Nigerian Stock
Exchange (NSE) has appealed to shareholders of quoted stocks to support
the market through regular report of unethical practices of companies.

Sola Oni,
spokesperson for the NSE, in a statement at the weekend, said Emmanuel
Ikazoboh, interim administrator of the NSE, gave the advice when some
members of the Ibadan Zone of the Shareholders’ Association paid him a
courtesy visit.

Mr. Ikazoboh said
investors should also support the market through positive comments.
“Investors are the nerve centre of the market otherwise there would be
no market,” he said.

Meanwhile, the
association’s six-man executive members, led by its chairman, Aderemi
Oyepeju, passed a vote of confidence on the Exchange’s management for
working to reinforce investors’ confidence in the stock market. They
said the on-going market reform will put every operator and quoted
company on their toes.

The group also
commended the Exchange’s recent sanction of all erring quoted companies
that have reneged in meeting their responsibilities, listing
obligations such as prompt release of financial statements and payments
of listing fees among others. “Such zero tolerance is much needed to
build the market” Mr. Oyepeju said.

They expressed
dismay at the way many investors have suffered untold hardship due to
lack of regular information from quoted companies and unethical
practices of some market operators.

They urged the
Exchange’s management not to relent in its efforts at ensuring
compliance with market rules and regulations by operators and quoted
companies.

Necessary machinery

The shareholders
also urged the NSE to put necessary machinery in motion to ensure that
private companies no longer use listing of shares on the Exchange as a
marketing gimmick for private placement. According to them, “Many
investors have got their fingers burnt through participation in private
placement as those companies hardly apply for listing after the offer.”
Commenting on the modalities for payment of dividend by quoted
companies, the shareholders suggested the need for banks to device a
means of informing shareholders whenever dividends are credited into
their accounts under the new regime of e-dividend.

On the on-going
discourse on the status of registrars, they endorsed independence of
registrars for enhanced professionalism and avoidance of avoid conflict
of interest. However, they admonished the registrars to always treat
verification of share certificates with dispatch.

On the need to
strengthen prompt communication between the market and investors, the
group urged the exchange to ensure that Central Securities Clearing
System (CSCS) alerts investors anytime transaction is about to be
effected on their stocks.

The group lauded the on-going market
reform by the Securities and Exchange Commission (SEC) but cautioned
that it should be handled in a way that would not heat up the system.
They said, “The Exchange has a lot of potentials that would always make
it attractive to investors globally as long as investors’ confidence is
sustained.” In his response, Mr. Ikazoboh thanked the group for their
confidence in his administration and the Exchange’s management and
noted that virtually all the issues they raised are being addressed.
For instance, he explained that a new window created by the Exchange to
address the challenges of private placement has commenced operation. He
assured them that all forms of breach of market rules and regulations
shall continue to attract stiff sanctions. He informed them that
operation of trade alert is being reviewed to make it more effective
and efficient as a monitoring device.

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Downward trend creates short trade opportunities

Downward trend creates short trade opportunities

The stock market
opened for three days as Thursday and Friday were declared public
holidays in celebration of id-el- fitri. Meanwhile, the bear took the
lead as the stock exchange and the All Share Index failed to sustain
the last support point it found during the previous week; thus, it
dropped from the opening point of 24,241.84 and rested at 23,802.79
points having shed 1.81 per cent an equivalent of 439.05 points.
Investors should note that the straight drops have dragged good numbers
of equities below their respective intrinsic values leaving traders
with short term trading opportunities. The market capitalisation of the
listed equities equally closed at N5.832 trillion.

The NSE-30 Index
closed in the red below 1,000 points at 994.19 points from the opening
figure of 1,010.57. This is an indication that good numbers of the most
capitalised equities were hit by the bear’s knife. All the four most
active sectoral indexes closed below their respective opening figures.
NSE- Food/Beverages index closed down at 770.54 from the opening
figures of 775.06 having shed 4.52 points or 0.58 per cent. NSE-Banking
index lost 9.55 points same as 2.70 per cent moving from 354.05 to
344.50. NSE-Insurance index closed low at 171.74 from 173.86 losing
2.12 points an equivalent of 0.12 per cent and NSE-Oil/Gas index closed
in the red at 362.52 points from the opening of 367.22 shedding 4.7
points or 1.28 per cent.

Technical view

The NSE broke above
the upside resistance level of 22,160.69, 161 days ago. This was a
bullish sign. This previous resistance level of 22,160.69 may now
provide downside support. Volume on the day of the breakout was neither
extremely heavy nor extremely light – providing no convincing evidence
either way as to the validity of the breakout. A long lower shadow
however occurred, typically a bullish signal, so traders should
therefore watch for possible short bull takeover.

Within the three
trading days the stock market recorded a turnover of 591.85 million
shares valued at N5 billion in 17,660 transactions. Of these volumes,
the banking subsector contributed 304 million shares that were
exchanged in 9,650 deals. Volumes in the sector were chiefly driven by
transactions on the shares of Zenith Bank Plc, FinBank Plc, Guaranty
Trust Bank Plc, and First Bank of Nigeria Plc in that order. Volume in
the banking sector accounted for 51.44 per cent of the entire market
performance. On the other hand, volume on the shares of AIICO Insurance
Plc, and NEM Insurance boosted performance in the Insurance sector as
the sector followed on performance chart with 79.63 million shares
moved by 884 transactions.

First Aluminum tops
the price percentage gainers’ with 13.40 per cent appreciation from
N0.97 to N1.10. Honeywell followed with 10.36 per cent price
appreciation while 7-Up’s price was impacted by the corporate action on
dividend and bonus as it gained 10.23 per cent. Due to price adjustment
for dividend of N0.40 and bonus of 1:5, University press top the
losers’ table by 24.00 per cent. While profit taking activities dropped
the price of National Salt by 13.91 per cent, Poly product shed 13.74
per cent and Bank PHB closed down by 13.18 per cent.

Bond market

A total volume of
141.71 million bonds worth N129.01 billion exchanged in 1,257 deals was
transacted last week. This is in sharp contrast with the 264.92 million
units valued at N262.72 billion transacted in 3,111 deals for the week
ended Thursday, September 2, 2010. Measured by turnover/volume, the
most active bond was the 10 per cent FGN July 30, 2010 series which
recorded a traded volume of 77.05 million valued at N68.96 billion
cross 694 deals. It was immediately followed by 4 per cent FGN April
2015 series, with a traded volume of 31 million worth N25.25 billion
and exchanged in 227 deals. Ten out of the available 37 FGN Bonds were
traded in the week under review in contrast to 14 recorded in the
Penultimate week.

During the week, 15
equities were placed on full suspension for non-compliance with the
listing rules on financial reporting for 2008 as at 6th September,
2010. The equities delisting process shall formally commence if they
fail to release their respective result by Monday 11th October, 2010. A
total of 28 equities shall be placed on technical suspension on Monday
4th October 2010 if they failed to release their 2009 financial reports.

Five equities were
directed to regularize their status in the areas of audited accounts,
evidence of recapitalization and payment of outstanding listing fees;
failure to do this, the exchange shall commence delisting process
against them.

Meanwhile, seven
equities have appeared on the NSE watch list for complete
recapitalization activities, submission of outstanding financial
accounts, AGM meetings, and clearance of all regulatory issues with the
Securities and Exchange Commission among other issues.

Corporate actions

Seven-Up Bottling
Company Plc: the Q4 FY results of the heavy weight bottling company,
7-Up Plc for the period ended March 31, 2010 was made available in the
market last week. A cursory view on the performance indexes as shown in
the table below revealed improved growth against a comparable period in
2009. Lead indicators recorded double digit growth. Sales revenue
attained new high of N41.07 billion. Cost of sales (COS) remained high
at 85.4 per cent (same figure attained in FY 2009). Despite high COS
earnings was boosted by advanced growth in the bottom line.

Q4 EPS recorded a
growth of 23.8 per cent from 298 kobo in FY 2009 to 369 kobo
stimulating need for improved incentives. Other performance yardsticks
are ROE, PE ratio and Net profit margin of 21 per cent, 12.9x and 4.6
per cent respectively. At current earning yield of 7.7 per cent, 7-Up
returns to average shareholder is above benchmark 5 per cent. The
company’s directors have recommended a twin incentive; dividend of 175
kobo and scrip of 1 for every existing 4.

Observation: These
incentives are attractive considering the fact that 11.33 per cent of
the current market price will be paid to shareholders.

John Holt Plc: Conglomerates quoted company, John Holt Plc made available in the
market last week its belated Q4 FY results for the period ended
September 30, 2009. Performance indices showed subdued performance. As
depicted in the table below, TO and PAT dipped significantly by 11.6
per cent and 649.7 per cent.

With the
significant decline in the major profitability indices, ratio
indicators equally slide low, as such EPS loss ground by 655 per cent
at current LPS of 550k against 100k in FY 2009. Other major indicators
turned negative.

Observation: This stock is not attractive for short-medium investment.

Aiico Insurance
Plc:
Policing covering firm, AIICO Insurance Plc last week reported its
overdue Q4 FY December 31, 2009 results to the market. Indicators
revealed stimulated performance in the midst of endemic concerns by
household units over the insurance industry, especially in the period
covered. Growth in the bottom line was notable. Though sales premium
managed 0.2 per cent growth, bottom line boosted by tax rebate grew by
67.5 per cent.

Performance ratios
witnessed improved growths. EPS went up by 75 per cent at 14k against
8k in FY 2008. At PE ratio of 7x, net profit margin of 26.8 per cent
and earnings yield of 14.3 per cent, AIICO appears attractive for
medium term investment.

Observation:AIICO is attractive for medium term investment.

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On the Nigerian economy

On the Nigerian economy

Any time we finally
agree to take the tentative steps required to reconstruct this country,
the most striking proof of the unpleasant consequences of the inept way
the country has been governed over the years will be the way in which
distortions to the functioning of the economy now interact with every
sphere of our lives. I used to imagine that the strongest failing
described by this negative feedback loop was that of the market. We
still distrust the market. It is in the popular imagination, akin to a
beast of prey with a morbid craving for the flesh of the vulnerable in
societies. Concerned about the impersonal effect of the market on the
poor and the elderly amongst us, we have over the years acceded to
bureaucrats the right to make key decisions over how much of our
resources go towards certain sectors of the economy, and when.

Of course, this is
one of the larger paradoxes of life in this country. For simultaneously
as we invest bureaucrats with responsibility for decisions on the
commons, we can scarce trust them with such responsibility over our own
lives and property. In the popular imagination, they are no different
from bandits, able and willing to loot at will. What logic then makes
it okay that they sit in judgement over the national purse? Every day,
we see evidence of the failure of this arrangement. No sector of our
economy is where it should be considering the resources we reportedly
have expended in these directions over the years. Worse still, a number
of sectors that were in considerably decent fettle at the end of the
colonial administration have fallen way behind their peers elsewhere.

There are other
evidence. In those sectors of the economy where our favoured
bureaucrats have lesser influence, the difference is notable. Two of
these are outstanding: the wholesale and retail trade sector; and the
telecommunications sector. Here prices respond in real time to signals
from the market. Moreover, we see a general tendency for prices to go
down, or (which is just putting it differently) for suppliers to
continuously increase supply and differentiate their product/service
offerings. Alas, we also see businesses in these sectors laying off
their staff, and now and again shutting down whole assembly lines. But
this is as it should be. For only an economy, led by bureaucrats can
continue to proffer a line of goods and services when the market has
clearly expressed its preference for something else. Or how else could
NEPA (nay, PHCN) and a host of government run corporations continue to
exist?

If the “market” as
“electorate” had a choice in the matter, we would have long since shut
these institutions down a la NITEL. “Government by the public sector”
is not just one reason why this economy has not developed as well as it
might. It would seem, on this reasoning, that our system of economic
management is also implicit in our failure to develop as a democracy.
Our decision to allow the public sector directly allocate resources
within the economy is the greatest let on individual exercise of choice.

None of this is
saying anything new really. At best, I might be charged with putting a
new spin on this phenomenon. Nonetheless, there ain’t many Nigerians
who have given passing thoughts to these issues who then failed to
reach the conclusion that the way we have managed the economy over the
years adds greatly to the relatively high domestic cost of doing
business. And that the relatively high cost of doing business in this
country is a major problem across board.

So far, one can
explain the high cost in the real estate sector. This is arguably where
the public sector’s influence is most pernicious: what with the myriad
rules and regulations, including ones, which add so much to the
mortgage process, making even this inaccessible to the economically
vulnerable amongst us. However, of late, the main costs for putting up
a building in the country have remained stable. It is instead, the
labour component that has gone up. Now, in a labour-rich, and fairly
poor country, this is strange indeed. Recall the feedback loop, and
this is properly explained, however. Our youths would rather get rich,
than work trying. Accordingly, the pipeline of apprentice masons,
bricklayers, etc. has thinned, making the custom of the few available
master artisans expensive.

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New ticket levy causes rancour among airport operators

New ticket levy causes rancour among airport operators

Professionals in
Nigeria’s aviation sector are divided over the ‘pay as you go’ mode of
payment which was recently introduced by the Nigerian Airspace
Management Agency (NAMA) and aimed at collecting terminal navigational
charges from domestic airlines.

The fuss generated
by the new levy since it was introduced on September 1 has resulted in
series of complaints and reactions from some airlines. The development
resulted in the grounding of Arik Air’s 120 domestic flights in one
day, and led to the introduction of N100 additional ticket charge by
Aero Contractors, which the carrier described as ‘NAMA Tax’.

Lateef Lawal, an
analyst with over two decades experience in the country’s aviation
industry, and the editor of Nigerian Aviation News in Lagos, said the
objections by domestic carriers on the new charges are “unnecessary”,
adding that the airlines are looking for ways to evade the payment for
services rendered to them by service providers in the sector.

Debt owed FAAN

Mr. Lawal argued
that all domestic carriers in Nigeria jointly owe the Federal Airports
Authority of Nigeria (FAAN) and the Nigerian Airspace Management Agency
(NAMA) a “whooping N10 billion, if not more,” out of which over N4
billion is owed NAMA.

“Prior to the 1st
September 2010, when the management of NAMA took the bull by the horns
after the directive of the Minister of Aviation for aggressive revenue
and debt recovery drives, there had been several meetings between NAMA
officials and those of the debtor airlines on debt reconciliations.
Some attended, others blatantly refused to attend,” he said.

According to him, a
ministerial committee was later set up to look at all the issues at
stake and come up with recommendations, adding that members of Airline
Operators of Nigeria (AON) were part of the committee, along with those
of the ministry and all the parastatals in the industry.

“After the
committee’s two-week sitting, they came up with far reaching
recommendations which included the spreading of the old debt owed by
the airlines since 2005 to June 2010 across 36 months, while they
should henceforth make it a point of duty to always pay for services
rendered to them,” he said.

He explained that
the recommendation, among others, was endorsed by the minister for
implementation. “This is what NAMA started to do on 1st September this
year.”

He said that it is disturbing for airlines with whom such agreement was reached to want to renege on the arrangement.

Different views

However, Gabriel
Olowo, a seasoned expert in the sector and chief executive of Sabre
Travel Network, said that the answer to the ongoing disagreement was to
“abolish ticket sales charge.” He said that the Airline Operators of
Nigeria had in the 90’s agreed to give five percent of what they get
from the sales of air tickets to the government to enhance the aviation
sector, adding that the amount was meant to cover any other levy on the
airlines.

“We ordinarily
should not speak on the matter waiting before the Supreme Court of
Nigeria; but throwing light into the history of ticket sales tax,
Airline Operators of Nigeria (AON) during the early 90’s had a
gentleman’s agreement with government to contribute five percent of all
ticket sales for aviation development having appreciated the financial
needs of our airports and airspace,” Mr. Olowo said.

“While this
subsists, it is expected to replace and substitute whatever charge
these institutions may have legitimacy to charge. There exists a
sharing formula for the fund by the agencies,” he added.

Mr. Olowo disclosed that it was after the agreement that NCAA became independent.

“NCAA thereafter
became autonomous and FAAN was collecting Passenger Service Charge
(PSC) known as airport tax, in addition to its landing and parking
fees. NAMA saw the sense also in collecting terminal navigational fees,
which is tantamount to eating your cake and wanting to have it,” he
said, stressing that the levies on domestic airline tickets are
exorbitant.

“If we are serious
about having strong and thriving Nigerian carriers, additional tax
burden on ticket in whatever nomenclature will simply turn the airlines
to revenue collecting agents in the face of the already difficult
business environment,” Mr. Olowo said.

The Nigerian Civil
Aviation Authority (NCAA), the regulator of the aviation industry, is
yet to make any public states on the issue.

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Nissan sells 4,000 vehicles in Nigeria annually

Nissan sells 4,000 vehicles in Nigeria annually

The Nissan Motor
Company Ltd. has put its annual vehicle sale to Nigeria at 4,000 units,
saying this is attributable to its difficulty in understanding the
market.

Michiharu Kayamoto,
the Manager, sub Saharan Africa and Near East Department, made this
known in Yokohama, Japan, when the UNIDO Delegate Programme team
visited the company.

“This figure is too
small compared to what Toyota exports to Nigeria and we really will
want to improve on this,’’ Mr Kayamoto told the News Agency of Nigeria.

However, he said generally, Nissan vehicle sales to Africa dropped
from 72,000 in 2008 to 42,000 in 2009 and the figure remained the same
in the first quarter of 2010.

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Niger to boost tourism with durbar

Niger to boost tourism with durbar

The Niger State
government said it will host 46 Commonwealth countries to a grand
durbar on October 13, to boost the tourism potential of the state.

Adamu Chika, the
Commissioner for Tourism and Culture, said this in Minna at the Minna
Emirate’s durbar, organised as part of the Eid-El-Fitr celebration.

Mr Chika said that
the durbar was part of the state’s strategy to expose its rich cultural
and tourism potential to the international community.

“The Niger State Government has successfully created ‘The Niger
Durbar’ which has attracted the attention of the international
community. A clear demonstration of this is a request made by delegates
from the 46 Commonwealth countries, who would be in Nigeria for an
international programme,’’ he said.

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Cattle breeders bemoan farmers’ encroachment into grazing reserves

Cattle breeders bemoan farmers’ encroachment into grazing reserves

The immediate-past
Chairman of Miyyatti Allah Cattle Breeders Association in Gombe State,
Sale Tinka, has condemned farmers’ encroachment into grazing reserves
in the area.

Mr Tinka told
journalists over the weekend in Wawazenge, Gombe State that
encroachment into the ‘Wawazenge’ grazing reserve in Funakaye Local
Government Area of the state is a particular source of friction between
farmers and cattle owners.

Mr Tinka warned that the situation, if not quickly addressed, was capable of creating serious security problems in the area.

He said sometimes ago, members of a vigilante group confiscated some
cows belonging to cattle owners living within the reserve, alleging
that the animals had strayed into their farmlands and destroyed their
crops. “The matter was then resolved, with a pledge that such an
incident will never occur again,’’ Tinka said.

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