Business
Airlines Focus on Lucrative Routes Amid Ongoing Aircraft Shortage
Nigerian airlines are concentrating their efforts on high-traffic routes due to a persistent shortage of aircraft. The shortage is attributed to high maintenance costs and the grounding of several planes by the Nigeria Civil Aviation Authority (NCAA) because of maintenance issues.
As a result, airlines have reduced flights to less popular destinations, directing their limited fleet to routes with higher passenger demand to maximize revenue. Small airports like Ilorin, Akure, Anambra, Asaba, Ibadan, Calabar, and Enugu are experiencing fewer flights, while major routes such as Lagos to Abuja, Port Harcourt, Owerri, and Kano have more frequent service.
Emeka Nwafor, Managing Director of Anambra International Cargo and Passenger Airport, noted the impact on smaller airports. “The shortage of aircraft is affecting Anambra airport. For instance, an airline that previously operated daily flights to Lagos and Abuja has reduced its frequencies. We now have skeletal weekly flights with occasional cancellations,” he said.
Nwafor added that another airline serving Anambra has faced even greater challenges, sometimes operating with only one aircraft. He emphasized the ripple effect of flight delays on overall operations and the airport’s reliance on aeronautical revenue, which suffers when flights are scarce.
In recent months, Nigerian airlines have struggled with fleet reductions due to soaring maintenance costs exacerbated by foreign exchange shortages. Some airlines have had to ground their aircraft due to these costs or NCAA directives. The grounding of Dana Air, which previously operated six aircraft, has also strained the availability of flights, leading to higher ticket prices on routes it once served.
Ndukwe Ginika Ogechi, CEO of Geena Travels and Tours Ltd, highlighted the difficulties faced by travelers. “Ticket prices have been rising, and seat capacity has dwindled as there are fewer flights to underserved destinations. Routes that previously had multiple flights daily now see reduced service or no flights at all,” Ogechi said.
Data from the NCAA indicates that 13 domestic airlines in Nigeria collectively operate 91 aircraft, including those undergoing maintenance. Sources close to the NCAA reported that over half of these aircraft are currently grounded for maintenance, further straining the already limited fleet.
Business
Shehu Sani Criticizes World Bank Over Nigeria’s Economic Outlook
Former Kaduna Central Senator Shehu Sani has criticized the World Bank for worsening Nigeria’s economic difficulties. In a post shared on X, Sani accused the institution of projecting that Nigeria’s hardship would extend for another 15 years before the country could reach a better economic future. He questioned how many Nigerians would be left to enjoy that future, and how many African nations the World Bank has successfully helped to prosperity.
Sani’s remarks follow the World Bank’s latest *Africa’s Pulse* report, which forecasts that the Nigerian Naira will be among the worst-performing currencies in Sub-Saharan Africa by August 2024. The report placed the Naira’s decline alongside that of the Ethiopian Birr and South Sudanese Pound.
Business
HIG: Building Trust and Driving Innovation in Nigeria’s Insurance Market
Heirs Insurance Group (HIG) recently announced impressive financial results for the 2023 fiscal year, marking significant growth across all key metrics. The Group’s Gross Written Premium (GWP) surged by 59.3%, from N19.9 billion in 2022 to N31.7 billion in 2023. This remarkable performance underscores HIG’s resilience and operational efficiency, further solidifying its position as one of Nigeria’s fastest-growing insurance firms.
Heirs General Insurance (HGI) saw a 77% increase in GWP, reaching N12 billion in 2023. HGI’s profit before tax (PBT) also rose by 203%, reflecting the company’s effective cost management. Similarly, Heirs Life Assurance (HLA) reported a 71% GWP increase and a staggering 395% rise in PBT. Both companies have demonstrated a strong commitment to customer satisfaction, disbursing billions in claims.
Beyond financial success, HIG actively engages in corporate social responsibility (CSR) projects, contributing over N100 million to education, community development, and financial literacy. With plans for future expansion and innovation, HIG is poised to remain a key player in Nigeria’s evolving insurance market.
Business
Wike Urges Nigerians to Pay Taxes for Improved Social Services
Federal Capital Territory (FCT) Minister, Nyesom Wike, has called on Nigerians to fulfill their tax obligations, emphasizing that government revenue is essential for delivering social services. Wike made this appeal during the inaugural Abuja Business and Investment Summit, held in Abuja on Wednesday.
Speaking on the summit’s theme, “Optimising Investment Through Partnerships,” Wike stressed the importance of collaboration to generate investment opportunities. He dismissed the misconception that the government does not need revenue, explaining that taxes are crucial for funding public services.
Wike reiterated that both investors and the government must benefit from such partnerships, ensuring that both parties “go home smiling” through a fair exchange of services and taxes.
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