By Louis Iba
Foreign airlines operating into Nigeria repatrated about $200million being part of their revenues from ticket sales which were originally withheld by the Central Bank of Nigeria (CBN), Chairman of Airline Operators of Nigeria, AON, Capt. Nogie Meggison has said.
Megisson, who stated this over the weekend in Lagos decried the recent pressures mounted on the Federal Government through the International Air Transport Association, (IATA), the media, and other international bodies to release their blocked funds to them for repatriation. He noted that over the years, foreign carriers had benefited immensely from Nigeria but had rather selfishly failed to make any significant investment toward the growth of the countryís economy.
Meggison explained that between September and December 2015, the Federal Government had released $10 million to foreign carriers while just $2 million was released to local carriers within the same period out of the trapped fund with the CBN.
So far, in 2016, about $200 million has been released to the foreign carriers, he said. Out of this figure two foreign carriers got $14 million each, and for which they have failed to inform the world. He said in 2016, local carriers only got $10million released to them.
He said all stakeholders including investors in the airline industry should understand that the blocked funds incidence was simply because foreign exchange was not available in the country now as a result of high demands for dollars by other business organisations.
He explained that local carriers in the last eight months have found it difficult to source forex for the maintenance of their aircraft, spare parts, simulation training and insurance among many others. Megisson dispelled fears of more foreign carriers shutting down their operations in Nigeria and sacking workers just as Iberia and United Airlines pulled out of Nigeria because of blocked funds explaining that the two airlines suspended operations in Nigeria because of their inability to compete in the market and not because of the trapped funds.
No airline is withdrawing from Nigeria. Those that left have never been doing well before now. For instance, Iberia has been closing its routes, not just in Africa, but in the world over, said Megisson.
Also, United Airline’s strength is in the oil business and oil is no longer what it used to be in the past.
Delta Air Lines has taken over the United States market and United Airlines cannot just penetrate it.
British Airways canít leave Nigeria, but it would device a mean to adjust its business plans. British Airways has recently reduced its aircraft from Boeing 747 to B777 because of capacity,î he added.
By last week Monday, the total amount of funds belonging to foreign carriers trapped in Nigeria had grown to $600million within the last seven months from the initial $577 million as at the end of March 2016.
Guinea Insurance hosts CIIN 2016 fitness walk
By Maduka Nweke
Guinea Insurance Plc (GI), in its resolve to support growth and development in the industry, is strategically partnering the Chartered Insurance Institute of Nigeria (CIIN) to ensure that the recently held “street presence” exercise in Lagos was seamless and successful.
The company hosted the pre-walk reception of the institute’s members at its corporate head office premises at Jibowu, where the pre-walk aerobic exercise and health tips were conducted shortly before the street presence exercise commenced to the destination point – Niger Insurance Plc House, Anthony Bus-stop, on June 4, 2016.
The institute observed that the urban lifestyles of members dissuade them from engaging in any form of physical exercise which, in effect, has triggered poor health and low quality of life, hence, the need to awaken interests and participation.
A statement issued by the company’s Ag. Managing Director/CEO, Mrs. Isioma Omoshie-Okokuku, reiterated the company’s commitment to rekindling the true spirit of sportsmanship and fostering national unity through interactions among industry players and analysts.
“We are proud to have partnered with the institute, especially as the benefits of the street presence exercise extend far beyond weight management to improved health conditions and overall quality of life,” she said.
Lady Isioma Chukwuma, President of the institute, while addressing participants at Guinea Insurance head office premises, lauded them for their resilience and commitment to move the industry forward despite the unscheduled cancellation of the event, which was initially slated to hold on May 21, 2016.