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Airlines groaning under multiple taxation – Okonkwo

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Amidst ongoing developments in Nigerian aviation, United Nigeria Airlines Chairman/CEO and Airline Operators of Nigeria spokesperson, Obiora Okonkwo, has provided insights into sector policies, infrastructure gaps, and the significant impact of multiple taxation on local operators, in this interview with OLASUNKANMI AKINLOTAN, which also covered industry realities and prospects for regional development.

What distinguishes your airline on the newly launched Accra route, and what is your plan to ensure long-term viability in this competitive market?

Passengers can only buy tickets from airlines that are available. We have not been available in the market, so we could not have competed. Now, we are in the market; our first strategy is promotion, letting people know that we are here with an exceptional service to offer. Our CRJ-900 for that route is a beautiful aircraft. The aircraft is superb; the configuration is great, the interior is marvellous, it is very suitable for this kind of operational flight, and it has a passenger capacity of 90. So, if we have an adequate and a reasonable number of passengers to fly there, that aircraft will be dedicated to that route. We also have the ERJ-145 to compete. Pretty much, we are offering the passengers not just an apple-for-apple comparison but something bigger and better than an apple. That is one way to tell you that we are ready and we are prepared. In terms of the saturation of the market, at least from available data, out of the whole region of West Africa, traffic from Nigeria to Accra is more than all the other regional flights. I mean the whole traffic from Nigeria to other regions. 50 per cent of the traffic is between Nigeria and Accra. So, it is still a place to compete. In other words, we have to be as reasonable and fair as possible with our pricing and costing. Above all that, we will do more than the passengers’ expectations. Every passenger will want to have a convenient schedule and then, with that convenient schedule, will want to get there on time. If you look at our records at United Nigeria, our on-time departure is almost 98 per cent, if not more. There is no record that is better than that. Those things we have developed out of our experiences in the domestic market, we will take them to the regional level.

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Given the heavy burden of charges, including an $80 FAAN fee, a $20 NCAA security levy, and a separate 5% ticket sales tax, which are pricing many passengers out of air travel, how can you possibly sustain your new Ghana route amidst such high costs and intense competition?

This should be the industry’s concern. This should be a national concern because it is not to the government’s credit that Nigerian airlines that start operations in the region would close shop shortly after. All the airlines that operate primarily are private companies, and they can only operate on a route if it is sustainable. The maximum you can fly is three to six months, unless you have some support. Nigeria has a reputation for taxing more than any other country, and that is not good for aviation. It is not good for the passengers. Every passenger taking off from Nigeria to Ghana is already paying $100, and then returning from Ghana to Nigeria is $60. If you have to go that route from Abuja to Ghana, you buy a ticket for as much as N300,000, and when you factor in tax and fuel, you would find out that the ticket yields zero profit for the operator. Such things are killing us and suffocating us. If the taxes are so high and Nigerian operators cannot remain competitive on that route, these other carriers coming in, whatever ticket you pay for, represent a capital flight from Nigeria. It is a capital flight because those foreign airlines, even if you buy their ticket in Nigeria, have to convert that money and send it back to their own country. There is no obligation that they must leave the money here. Imagine if Nigerian airlines were competitive and not suffocated by all those charges. For instance, if they had access to single-digit loans, they could acquire more aircraft, and the business could be taken away from the international carriers.

In such a case, the companies that would be closing shop would not be Nigerian companies; it would be all those carriers who have been exploiting these routes.

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Despite the current administration’s efforts to develop the aviation sector, airlines still face significant hurdles like high taxes and an inability to secure single-digit loans. What is the concrete impact of these financial burdens on your operations?

When we talk about single-digit loans, we are bearing in mind that aviation is a worldwide industry and the competition can be very high. In Nigeria, we are competing in the same market with other large carriers and legacy carriers such as British Airways, American Airlines, Lufthansa, and Qatar, just to name a few. In their countries, they have loans at two to three per cent, not even through a special window loan. Compared with our market, we have to take loans in Naira and convert them into forex at the existing commercial rate, which is already over 30 per cent. It is a spillover effect.

One way or another, all these things are factored into our costing. When all these things are done, our ticket is the major product. For instance, a trader, businessperson, or manufacturer who has a product has to factor in everything that went into the product before arriving at the cost. The components must be able to cover the cost before a tiny margin is added. Automatically, if somebody in another country is getting interest loans at five per cent and we are getting it at 35 per cent, my ticket cost is already 30 per cent more than it should be in that country. However, if you do not price accordingly, you will deprive yourself of other benefits. When you fail to do that, you find yourself at a level where you cannot make enough margin to grow, expand, and strengthen your business. Businesses must be able to remain sustainable. It must be viable to attract financing because airlines are capital intensive. The business owners can only scale up with huge finances. These finances are mostly available with the banks or other financial institutions. For them to do business with an operator, the operator’s books must be very attractive to show a good business plan. We are asking the government to treat aviation as an essential business. It should not be seen as a business of one individual because where there is strong aviation, it is a catalyst; it is an enabler to other economic growth. If you do not make it available for people to fly from Abuja to Lagos comfortably, it will affect their business. The point we are trying to make to the Nigerian government, the policymakers and even the general public is that, for instance, there are incentives attached to agriculture. Yes, feeding is good, but it is just as essential as aviation. There is no government economy that will grow if focused only on the lower-income elements. For any nation to grow, they have to put in place a policy that is good enough to build the middle class and even the upper class. I do not think that any country can achieve all its economic growth from tax. You cannot tax yourself, you cannot tax your country, and you cannot tax your citizens to greatness. I strongly believe that tax is necessary, but it has to be a tax that will enable other things to grow. We still have certain things that have been considered in this new review for the aviation industry that are a killer. It will erode all the good intentions this government has for this industry.

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Bank recapitalisation: Local investors provide 72% of N4.6tn

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The Central Bank of Nigeria (CBN) on Wednesday said domestic investors accounted for the bulk of funds raised under its banking sector recapitalisation programme, contributing 72.55 per cent of the N4.65tn total capital secured by lenders.

The apex bank disclosed this in a statement marking the conclusion of the exercise, which began in March 2024 and saw 33 banks meet the new minimum capital requirements.

The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.

According to the CBN, Nigerian investors provided about N3.37tn of the total capital raised, underscoring strong domestic confidence in the banking sector, while foreign investors accounted for the remaining 27.45 per cent.

“Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy,” the statement said.

Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”

The bank confirmed that 33 lenders had met the revised capital thresholds, while a few others were still undergoing regulatory and judicial processes.

“The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme,” it stated.

“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.

“All banks remain fully operational, ensuring continued access to banking services for customers.”

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The regulator stressed that the recapitalisation exercise was completed without disrupting banking operations nationwide, noting that key prudential indicators, particularly capital adequacy ratios, had improved and remained above global Basel benchmarks.

Minimum capital adequacy ratios were pegged at 10 per cent for regional and national banks and 15 per cent for banks with international licences.

The CBN added that the exercise coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall system stability.

To sustain the gains, the apex bank said it had strengthened its risk-based supervision framework, including periodic stress tests and requirements for adequate capital buffers.

It added that supervisory and prudential guidelines would be reviewed regularly to improve governance, risk management, and resilience across the sector.

“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement added.

Meanwhile, data from the National Bureau of Statistics showed that foreign capital inflows into the banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025 from $7.00bn in 2024, reflecting strong investor interest during the recapitalisation drive.

However, the Centre for the Promotion of Private Enterprise has cautioned that despite the strengthened banking system, credit to small businesses remains weak, warning that the benefits of the reforms are yet to fully impact the real economy.

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Court freezes N448m assets in Keystone Bank debt recovery suit

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The Federal High Court in Lagos has ordered the freezing of funds and assets valued at N448,263,172.41 in a debt recovery suit instituted by Keystone Bank Limited against five defendants.

The order was made on March 26, 2026, by Justice Chukwujekwu Aneke following an ex parte application moved by Keystone Bank’s counsel Mofesomo Tayo-Oyetibo (SAN), against Relic Resources, Olufunmilayo Emmanuella Alabi, Uwadiale Donald Agenmonmen, The Magnificent Multi Services Limited, and Raedial Farms Limited.

In his ruling, Justice Aneke granted a Mareva injunction restraining the defendants, whether by themselves, their agents, privies, or assigns, from withdrawing, transferring, dissipating, or otherwise dealing with funds, shares, dividends, and other financial instruments standing to their credit in any bank or financial institution in Nigeria, up to the sum in dispute.

The court further directed all banks and financial institutions within the jurisdiction to forthwith preserve any funds belonging to the defendants upon being served with the order.

The said institutions were also ordered to depose to affidavits within seven days of service, disclosing the balances in all accounts maintained by the defendants, together with the relevant statements of account.

In addition, the court granted a preservative order restraining the defendants from disposing of, alienating, or otherwise encumbering any movable or immovable property, including any future or contingent interests, up to the value of the alleged indebtedness.

The court also granted leave for substituted service of the originating and other court processes on the second and third defendants by courier delivery to their last known addresses.

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The matter was adjourned to April 9, 2026, for mention.

According to the originating processes before the court, the suit arises from a N500 million overdraft facility granted by the claimant to the first defendant on March 28, 2023, for a tenure of 365 days at an interest rate of 32 per cent per annum.

The claimant averred that the facility, initially secured by a $200,000 cash collateral and subsequently by a mortgaged property located at Itunu City, Epe, Lagos, expired on March 27, 2024, leaving an outstanding indebtedness of N448,263,172.41 as at October 31, 2024.

In the affidavit in support of the application, the claimant alleged that the facility was diverted for personal use by the third defendant and channelled through the fourth and fifth defendant companies.

It further contended that the first defendant is no longer a going concern and has failed, refused, and neglected to liquidate the outstanding indebtedness despite several demands made between May and October 2025.

The claimant also expressed apprehension that the defendants may dissipate or conceal their assets, thereby rendering nugatory any judgment that may be obtained in the suit, and consequently urged the court to grant the reliefs sought in the interest of justice.

After considering the application and submissions of learned silk, Justice Aneke granted all the reliefs sought and adjourned the matter to April 9, 2026, for further proceedings.

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Sanwo-Olu unveils Lagos 2026 economic blueprint, vows inclusive growth

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The Lagos State Governor, Babajide Sanwo-Olu, on Tuesday unveiled the 2026 edition of the Lagos Economic Development Update, reaffirming his administration’s commitment to driving inclusive growth and ensuring that economic progress translates into tangible benefits for all residents of the state.

The unveiling of this year’s outlook, held in Ikeja, provides an in-depth analysis of the state’s economic trajectory, capturing global, national, and local developments shaping Lagos’ growth outlook.

Represented by his deputy, Obafemi Hamzat, the governor described the report as more than a policy document, noting that it serves as a strategic compass for guiding economic direction and strengthening decision-making.

He added that despite global economic headwinds — including post-pandemic recovery challenges, inflationary pressures, and exchange rate fluctuations — the state has remained resilient through deliberate policies, fiscal discipline, and sustained investment in critical infrastructure.

“It is with a deep sense of responsibility and optimism that I join you today to officially launch the third edition of the Lagos Economic Development Update — LEDU 2026.

“This platform has evolved beyond a mere policy document; it has become a compass guiding our economic direction, shaping decisions, and reinforcing our commitment to building a resilient, inclusive, and prosperous Lagos,” he said.

He noted that while the global economic environment has remained unpredictable, Lagos has stayed on course through “clarity, discipline, and foresight,” anchored on the T.H.E.M.E.S+ Agenda.

According to him, the state had strengthened its fiscal framework, improved revenue generation, and invested in infrastructure critical to long-term growth.

Sanwo-Olu further highlighted progress recorded since the inception of LEDU, including the expansion of the state’s economic base driven by innovation, entrepreneurship, and digitalisation; improved efficiency in revenue systems; and sustained infrastructure development spanning roads, ports, energy, and urban planning.

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He added that continued investment in human capital remains central, as “people are the true engine of growth.”

Speaking on the theme of this year’s report, “Consolidating Resilience, Advancing Competitiveness, Delivering Shared Prosperity,” the governor said it reflects Lagos’ current economic priorities.

He explained that consolidating resilience involves strengthening institutions and fiscal discipline, while advancing competitiveness requires boosting productivity, innovation, and investment.

Delivering shared prosperity, he added, means ensuring growth translates into jobs, expanded opportunities, and improved livelihoods for residents.

Looking ahead, he reaffirmed the administration’s commitment to economic diversification, private sector-led growth, data-driven governance, sustainable urban development, and social inclusion.

He also stressed the importance of partnerships with the private sector, development institutions, civil society, and the international community in achieving the state’s development goals.

“As we launch this edition of LEDU, I urge all stakeholders to engage actively, strengthen collaboration, and align with our shared vision.

“We have built resilience; now we must translate it into sustained competitiveness and ensure that growth delivers tangible prosperity for every Lagosian,” he said.

Also speaking, the state Commissioner for Economic Planning and Budget, Ope George, said Lagos has demonstrated remarkable resilience in navigating both global and domestic economic challenges.

“Lagos is not just responding to economic shocks — we are building systems that make us stronger because of them,” he said, noting that deliberate policies, disciplined fiscal management, and strategic investments have reinforced the state’s position as a leading subnational economy in Africa.

He added that the state would continue to prioritise economic diversification, private sector growth, sustainable urban development, and social inclusion, stressing that growth must be measured not only by numbers but also by its impact on people’s lives.

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In his goodwill message, Chief Consultant at B. Adedipe Associates Limited, Biodun Adedipe, described the LEDU initiative as a credible framework for tracking economic performance and refining development strategies.

He noted that Lagos remains central to Nigeria’s economy, adding that its continued growth signals broader national progress.

“If Lagos works, a significant share of Nigeria’s commerce works,” he said, expressing optimism about the state’s economic future.

Meanwhile, the Chief Executive Officer of the Nigerian Economic Summit Group, Tayo Adeloju, urged the state government to prioritise affordable housing as a critical driver of shared prosperity.

He noted that high housing costs could limit upward mobility for low-income earners, stressing that making housing more accessible would enhance living standards and support inclusive growth.

Adeloju added that sustained fiscal discipline, improved service delivery, and a broader productive base would further strengthen Lagos’ position among Africa’s leading megacity economies.

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