Recent disruptions that stranded passengers, particularly in Abuja, have been linked to debts airline operators owe fuel marketers, even as operators lament the rising cost of Jet A1 aviation fuel.

Passengers who bought Air Peace tickets last Friday spent the night at the Abuja airport following flight cancellations and delays.

The PUNCH learnt that on Friday alone, Lagos, Maiduguri and Asaba-bound passengers remained at the Nnamdi Azikiwe International Airport as the airline delayed boarding for several hours and cancelled a number of flights.

Passengers who spoke with our correspondent claimed that the airline had failed to provide reasons for the disruptions.

Our correspondent gathered that Lagos-bound passengers scheduled to take off from Abuja at about 4:00 pm, as well as another set scheduled to depart earlier, remained at the airport until late that night.

While Lagos-bound passengers left the same night, Asaba- and Maiduguri-bound passengers spent the night at the airport, leading to a series of protests within the aerodrome.

Meanwhile, an airport source who refused to give her name for fear of reprimand had told our correspondent at the time that the passengers might still be airlifted before midnight to avoid disruptions to Sunday’s operations.

The source said, “Truly, many passengers sat helplessly at the airport. I learnt from the workers that it was a fuel-related issue, but only the airline can really explain what happened.”

When contacted, the spokesperson for the Nigeria Civil Aviation Authority, Michael Achimugu, told our correspondent that he gathered that the airline had been speaking with the passengers as events unfolded. He confirmed that issues relating to a lack of fuel had grounded the airline’s aircraft.

Achimugu did not, however, provide further information on why the airline was experiencing a shortage of fuel.

Achimugu said, “Yes, my CPOs have reported to me that the airline has been unable to fly the passengers because of fuel-related issues. I also learnt they have been updating the passengers, but you know when passengers get angry, they may not even listen to whatever information they are being provided with.”

When asked what exactly the issue was, he said, “What my CPOs told me is what I have told you. When we have more information, we will let you know.”

Efforts to speak with the airline’s spokesperson, Efe Osifo-Whiskey, were unsuccessful. He neither picked up his calls nor responded to text messages seeking clarification at the time.

Also, in a statement by the airline, Air Peace said the delay was caused by the unavailability of Jet A1 aviation fuel. Air Peace added that the fuel shortage also affected other airlines.

The Air Peace statement read partly, “The initial delays to our Abuja operations were occasioned by the unavailability of Jet A1 aviation fuel, which affected Air Peace and other airlines operating from the Abuja airport. Upon the availability of fuel, our affected flights commenced operations accordingly.

“However, our Abuja-Maiduguri service could not subsequently operate as planned because the tower in Maiduguri, which had given an extension for our flight to come in, later came back, as at the time of our calling for boarding, to state that the airport had become VFR and would no longer fly beyond sunset.”

While apologising to passengers, Air Peace added, “Throughout the disruption, passengers were duly informed of the delays and provided with refreshments. Following the cancellation, affected Maiduguri passengers were also provided with hotel accommodation, with arrangements made to operate the flight the following day.

“We sincerely regret the inconvenience caused to our esteemed passengers and appreciate their patience and understanding. At Air Peace, the safety and wellbeing of our passengers remain paramount, and we will continue to prioritise these considerations in all our operations.”

However, sources among marketers said the product was available, although at a higher price. One of the sources told our correspondent that, “Airlines may have faced disruptions because a number of them were not supplied the product because they have refused to clear outstanding. They are owing in the millions.

“The truth is some are owing, and they won’t expect continuous delivery while they are yet to pay what they are owing.”

An airline source who also refused to give his name told our correspondent that a litre of Jet A1 currently sells for about N2,130 in Lagos and Abuja, while the price ranges between N2,180 and N2,230 per litre at airports outside the two major aviation hubs, depending on the location.

The source said although aviation fuel was available, the major challenge confronting airlines was the high cost of procuring the product, which he said had continued to drive up their operating expenses.

He added that the situation was particularly difficult for indigenous carriers because most of their revenues were generated in naira, while a substantial portion of their operating costs was either dollar-denominated or linked to foreign exchange.

According to the source, the high cost of operations has left several indigenous airlines struggling to remain in business, with some having to source funds from other areas to meet their aviation fuel obligations.

He called on the government to intervene in the situation to prevent total collapse of the operating carriers.

Also, the Managing Director of Aero Contractors, Ado Sanusi, confirmed that the product is available in the country, dismissing the allegation of its scarcity. He, however, agreed that the cost of the product remained a major concern for operators.

Sanusi, who spoke against the backdrop of concerns over Jet A1 availability, said the emergence of the Dangote refinery has helped in making the product available. According to him, Jet A1 currently sells for about N2,000 per litre in Lagos, while the price is slightly higher outside Lagos by approximately N100 per litre.

He said: “I am not aware of the scarcity of aviation fuel in Nigeria. With the Dangote refinery, how can we experience scarcity of the product locally? The only problem is that it is expensive to purchase. Presently, the product goes for N2,000 per litre in Lagos, while it is slightly more expensive outside Lagos with about N100 difference.”

Sanusi also clarified that Aero Contractors was not indebted to aviation fuel marketers, saying the airline had a policy of settling its fuel bills as soon as they were presented.

“I can’t comment on any other airline’s debts, but one thing is sure: at Aero Contractors, we are not indebted to fuel marketers. We pay all our bills as and when due. For clarity’s sake, what I am saying is that once the bill is submitted to us, we settle it immediately at Aero Contractors. That’s the way we work here,” he said.

Source: punchng.com

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Abia State Governor, Alex Otti, has urged Igbo traders to move beyond conventional trading and focus on manufacturing and digital commerce to compete in the changing global economy.

Otti said this on Monday in Umuahia during the Igbo Day Lecture and Dinner organised by Ohanaeze Ndigbo Worldwide with the theme, “The Igbo Charter and Development of Ala Igbo.”

The governor said Abia and Ndigbo, historically known for trading, were deliberately shifting their focus towards manufacturing and technology-driven commerce.

Reflecting on concerns over the increasing presence of Chinese traders competing with Igbo entrepreneurs in retail businesses in Lagos, Otti said the response was to move beyond that level of trading.

He said, “We are leaving that level of trading. In Abia, we have markets. The markets are important. But we are moving from that level of marketing to manufacturing.

“So, this government is supporting manufacturing and driving digital delivery. We are leaving that physical store for digital delivery. So, when somebody talked about Alibaba, that is exactly where we are headed.”

Otti said digital commerce would enable Abia entrepreneurs to compete globally rather than remain dependent on conventional physical markets.

He said, “So, why are the Chinese coming to compete with us? We are moving away from there. And it’s going to start in Abia.

“So, Abia is both manufacturing and trading. But we are moving from conventional trading to digital trading. That is where the world is going. You either embrace it, or you risk being left behind.”

The governor said his administration was investing heavily in digital skills for young people, noting that some Abians trained under its TechRise initiative were already working for global technology companies from Aba.

Otti, who assured the President-General of Ohanaeze Ndigbo of his administration’s support, described the theme of the celebration, “Njikọ Ka” – translated as “Unity is Supreme” – as apt, saying it reflected the importance of unity in diversity.

He said his administration had laid a solid foundation for the development of the state, assuring that Abia would continue to witness significant transformation.

Source: punchng.com

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Africa’s richest man and President of Dangote Industries Limited, Aliko Dangote, has said he is prepared to confront legal challenges to his businesses, stressing that he is also willing to reduce his ownership of the Dangote Petroleum Refinery to 25 per cent as more Africans buy shares in the company.

The Dangote Group had earlier said a Kenyan court ruling over a land rights dispute would not stop the groundbreaking ceremony for its planned 700,000-barrel-per-day refinery in Lamu on Wednesday, although the order might affect some activities at the project site.

During a fireside chat at the Nairobi Securities Exchange in Kenya, Dangote spoke on the company’s planned investments in Africa, the Lamu refinery and its proposed public ownership structure in Kenya and other African countries.

The Malindi Environment and Land Court had ordered that the “status quo prevailing” on the land be maintained until a hearing on October 14. The order, dated September 25, was made public on Monday.

According to Reuters, the lawsuit was filed by 133 residents of Chandavai, an area in Lamu County, who claim that the land earmarked for the refinery is their ancestral heritage and that their families have lived and farmed there for generations.

The Dangote Group, in a statement, said, “The court has not halted the groundbreaking ceremony of the refinery at this stage. However, activities at the site may be affected by the ruling as both parties are required not to carry out activities until the case is heard on 14th October.”

Dangote, however, expressed confidence that the project would proceed despite the legal challenge. “I’m sure some of you must have seen that one court has given an order that we shouldn’t do any construction? I said no, no. This is normal for us in Africa. In fact, this is even small,” he told investors at the event.

Dangote challenged his challengers as he said he knew the forces behind the court cases. “Anyone who wants to cause trouble, we are ready for them,” he declared.

He said his business group had encountered more difficult situations in other African countries, citing a case in Senegal where one of its factories was stopped for a year.

“In Senegal, it’s not even the court. They stopped our factory for one year. We went up to the Supreme Court to get a judgement. So anybody who wants to cause trouble, we are ready for them,” Dangote said.

The planned Lamu refinery is expected to have a capacity of 700,000 barrels per day and is intended to replicate the Dangote refinery in Nigeria. Dangote has said the Kenyan refinery will cost between $15bn and $16bn and is expected to be completed by 2030.

The businessman said Kenya has become an important part of his group’s expansion strategy, adding that the company considers African countries its home. “We’re taking Kenya as our home. It is home here, and that’s why we’re here to invest. Anywhere in Africa is home, because we understand the issues, we understand the problems,” he said.

Dangote said the Lamu refinery project had moved quickly from discussions to implementation, noting that the group had already deployed construction equipment to the site.

The refinery is expected to generate significant employment, with Dangote saying more than 60,000 people would be required during the project. “We will try as much as possible to train a lot of people here because part of the project will need over 60,000 people working there,” he said.

He said the project would also create opportunities for small and medium-sized businesses around the refinery. Dangote said the refinery would not operate in isolation but would attract other businesses and industries to the area.

He also disclosed that the group planned to list the Lamu refinery on the Nairobi Securities Exchange, rather than the Nigerian Exchange, as part of efforts to deepen African capital markets.

“If there’s this kind of collaboration, it means that tomorrow, if we are going to have the refinery here in Lamu, it will be listed here in Lamu; we don’t have to list it in Nigeria. We shouldn’t list it in Nigeria. We should list it here,” he said.

The billionaire also said the planned ownership structure of his businesses would increasingly involve ordinary Africans, stressing that the group was willing to sell more shares where there was sufficient demand.

He said the company initially planned to raise $2.5bn through a private placement and an initial public offering. “The issue is that when we decided to do this expansion, we said, okay, fine, we’re going to sell about $2.5bn worth of shares,” Dangote said.

“And during that, we opened up a private placement; that’s just by invitation. The private placement was to get about a billion dollars, and then IPO, $1.5bn, so that’s a total of $2.5bn.”

According to him, the private placement attracted demand of $3.7bn. “But the private placement came out with a demand of $3.7bn. So we already took the $2.5bn after a lot of argument because we are two shareholders then, ourselves and the Nigerian National Petroleum Company, and we were able to convince them that, look, it’s better that we allow $2.5bn to go,” he said.

He added that the group subsequently created another $1.6bn offering to expand public ownership. “And then after that, we created another $1.6bn. The real purpose is for us to democratise wealth-making,” he said.

Dangote said the group was prepared to reduce its stake in the refinery significantly if more Africans wanted to buy shares.

“This $1.6bn that we have, I can tell you for nothing that we will sell more. We will go to the regulator and ask the regulator that, ‘Look, there is more demand; we want more Africans to own it ‘. As we go along, we don’t mind, even if Dangote will end up having twenty or twenty-five per cent, we have nothing to hide.”

This means that the group could ultimately sell up to 75 per cent of its stake in the refinery, depending on further share sales and demand from investors. Dangote maintained that shareholders would also have a role in determining the leadership of the company if they were dissatisfied with its performance.

“If we go to an AGM, if we are not doing the right thing, then change the leadership. You can vote us out, and put anything that you think can do better, which I doubt very much,” he noted.

He added that the group was committed to corporate governance and protecting minority shareholders as it brings more of its businesses to the capital market.

Source: punchng.com

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