The Nigerian transportation sector in 2024 was marked by a mixture of progress and setbacks, with key occasions shaping the panorama throughout roads, rail, and aviation.
From bold infrastructure initiatives and coverage shifts to disruptions and controversies, the sector has been a focus of nationwide consideration.
Whereas some initiatives aimed toward enhancing connectivity and operational effectivity made notable strides, challenges remained, testing the resilience of the nation’s transport techniques.
Because the yr involves a detailed, these developments spotlight the complexities of remodeling Nigeria’s transportation infrastructure in a quickly evolving financial and political local weather.
Q1 2024
- FEC approves development of Lagos-Calabar Coastal Freeway to Hitech
Context: In February 2024, the Federal Government Council (FEC), chaired by President Bola Tinubu, accredited the development of the Lagos-Port Harcourt-Calabar Coastal Superhighway. Messrs Hitech Development Africa was entrusted with the venture, to start with the 47-kilometer Part 1 in Lagos State.
The freeway, spanning 700 kilometers throughout 9 states, goals to reinforce connectivity and financial progress alongside Nigeria’s shoreline. The preliminary design consists of 10 lanes, with twin rail traces operating via the middle of the primary carriageways, and 11-inch-thick concrete roads strengthened with 20-millimeter metal.
Why it issues: That is the primary large-scale venture accredited by FEC underneath President Tinubu’s administration. Nonetheless, it sparked controversy because the Minister of Works had introduced the contract award to Hitech 5 months earlier than FEC’s official approval, elevating issues concerning the transparency of the procurement course of.
For the reason that contract was awarded on an EPC+F mannequin, the place the contractor will present many of the funding alongside federal authorities counterpart funding, the street can be tolled to recoup the funding.
Gov. Sanwo-Olu procures extra rail inventory for Crimson and Blue line operations
Context: In February 2024, Governor Babajide Sanwo-Olu of Lagos State introduced the procurement of extra rolling inventory for the Blue Line and Crimson Line rail operations. These rolling shares have been projected to reach from China earlier than the tip of 2024, following an settlement with the China Civil Engineering Development Company (CCECC).
The announcement got here weeks earlier than President Bola Tinubu was set to fee the primary part of the Crimson Line, and months after the Blue Line Part 1 started operations in September 2023.
Why it issues: Consultants emphasize that the success of rail techniques globally hinges on improved service effectivity, which is straight tied to the provision of trains. Extra rolling inventory is essential for growing service frequency and assembly rising commuter demand.
Sadly, the trains didn’t arrive as anticipated by the tip of 2024. The Lagos Metropolitan Space Transport Authority (LAMATA) in December introduced that the trains at the moment are projected to reach in 2025.
President Tinubu inaugurates the primary part of the Lagos Crimson Line
Context: In February 2024, President Bola Tinubu commissioned the primary part of the Lagos Rail Mass Transit (LRMT) Crimson Line at Ikeja Prepare Station, 30 months after development started in April 2021. The 27-kilometer Part 1 of the 37-kilometer Crimson Line runs from Agbado in Ogun State to Oyingbo, with eight stations.
The occasion additionally marked the settlement for the second part of the venture, a collaboration between Lagos State, the Lagos Metropolitan Space Transport Authority (LAMATA), and the venture’s contractor, CCECC.
The Crimson Line was designed to drastically minimize journey time, with a 40-minute journey from Agbado to Oyingbo. Gov Sanwo-Olu disclosed that the venture is funded by the Central Bank of Nigeria and native banks, with trains sourced from the USA of America, the UK, and China.
Why it issues: The Lagos Crimson Line Part 1 is the second rail line constructed by the Lagos State Authorities. It helps the state’s efforts to cut back personal automobile journeys, ease street congestion, and enhance the effectivity of public transportation within the metropolis.
Air Peace launches Lagos-London route
Context: In March 2024, native airline Air Peace launched the Lagos-London route, breaking the monopoly beforehand held by international airways.
The Minister of Aviation and Aerospace Growth, Festus Keyamo, was on the maiden flight from Murtala Muhammed Worldwide Airport (MMIA) to Gatwick Airport. He highlighted that the success of Air Peace on this route was a part of the federal authorities’s efforts to help native airways whereas making certain they meet the very best worldwide requirements within the aviation business.
On the launch, Air Peace pegged economic system class tickets at N1.2 million and enterprise class at N4 million, providing a distinction to the upper costs charged by international airways, which had beforehand set economic system tickets at N2.3 million and enterprise class at N6 million.
Why it issues: The introduction of Air Peace on the Lagos-London route affords Nigerian vacationers a big value discount, with tickets now extra inexpensive in comparison with the fares charged by international carriers. This transfer not solely offers price financial savings but in addition promotes competitors, which may result in additional value reductions and improved companies within the Nigerian aviation sector.Q2 2024.
Q2 2024
International airways reducing Lagos-London fares to push us out of the market -Air Peace
Context: In April 2024, Allen Onyema, CEO of Air Peace, disclosed that international airways on the Nigeria-UK route sharply decreased their fares after Air Peace entered with decrease costs. Earlier than Air Peace’s arrival, international carriers charged as much as N17 million for enterprise class and N5 million for the economic system, citing the trade price.
Nonetheless, after Air Peace launched fares as little as N1.2 million for economic system and N4.5 million for enterprise class, international airways swiftly decreased their costs, regardless of no vital shift within the trade price. Onyema urged that this price-cutting technique was a deliberate try and power Air Peace out of the market.
Why it issues: Passengers benefited from decrease fares, as international airways decreased their costs in response to Air Peace’s entry. Nonetheless, specialists raised issues that international carriers reducing fares under break-even factors to oust a neighborhood competitor was a questionable enterprise apply. Such techniques may hurt long-term competitors, limiting choices for passengers sooner or later.
Air Peace accuses Gatwick Airport of intentionally obstructing its UK flight operations
Context: In April 2024, Allen Onyema, CEO of Air Peace, revealed in an interview with Channels TV that Gatwick Airport had been deliberately obstructing the airline’s operations because it launched direct flights from Lagos to London in March 2024.
Onyema highlighted a number of points, together with difficulties with floor dealing with and insufficient area allocation on the airport. He recounted incidents corresponding to Air Peace being assigned to a terminal with a malfunctioning baggage carousel and a collapsed boarding gate.
The Air Peace CEO additionally shared how flights, regardless of finishing boarding on time, have been delayed because of the airport’s failure to offer floor handlers promptly. He speculated that these disruptions have been a part of a technique to power Air Peace out of Gatwick underneath the 80/20 slot rule, which requires airways to take care of a excessive on-time departure price to retain their slots.
Why it issues: The allegations towards Gatwick Airport elevate issues about native airways’ challenges when increasing operations overseas. Such actions may undermine competitors and disrupt the expansion of worldwide routes for native carriers. Nonetheless, Onyema has not made comparable claims since then.
Landmark Seashore Resort seeks reroute of Lagos-Calabar Coastal Freeway
In April 2024, the administration of Landmark Seashore Resort, led by CEO Paul Onwuanibe, initiated negotiations with federal and state governments to reroute the primary 1.5 km of the Lagos-Calabar Coastal Freeway.
The proposed route diverted the freeway alongside the undeveloped median of Water Company Highway to stop disruptions to the resort’s operations. This adopted a demolition discover from the Lagos State Authorities, which focused the resort as a part of the freeway’s proper of means.
Why it issues
Whereas the Lagos-Calabar Coastal Freeway guarantees vital advantages, this story highlights how large-scale initiatives can disrupt companies like Landmark Seashore Resort, a multibillion-dollar enterprise offering employment. Some argue that such infrastructure initiatives serve the better good, even when they injury companies.
Nonetheless, others contend that companies contributing to native economies and employment must be thought of within the planning course of. This stress displays the challenges of balancing nationwide growth with defending livelihoods, making it a key second in Nigeria’s transportation sector in 2024.
Atiku criticizes Lagos-Calabar Coastal Freeway venture over transparency and monetary issues
Context: In April 2024, Atiku Abubakar criticized the Federal Government Council’s approval of the Lagos-Calabar Coastal Freeway development contract, awarded to Hitech Development Africa. Atiku questioned the venture’s transparency, highlighting the dearth of aggressive bidding.
He identified discrepancies within the statements made by Works Minister Dave Umahi, who initially claimed the venture would require no public funding however later requested N1.06 trillion for its first part. Atiku additionally raised issues about potential conflicts of curiosity, alleging that the venture disproportionately benefited President Bola Tinubu and Hitech’s Chagoury Group.
Why it issues: Atiku’s issues spotlight the significance of transparency and equity within the procurement course of for main public infrastructure initiatives. His criticisms, echoed by figures like Funso Doherty, draw consideration to the dangers of opaque decision-making and its potential influence on companies, native communities, and the broader economic system.
The controversy surrounding the Lagos-Calabar Coastal Freeway emphasizes the necessity for aggressive bidding and accountability in public initiatives to stop conflicts of curiosity and defend stakeholders’ pursuits.
Lagos-Calabar Coastal Freeway Proper of Means redesigned round Water Company Highway to protect infrastructure – Umahi
Context: In April 2024, Minister of Works Dave Umahi defined the redesign of the Lagos-Calabar Coastal Freeway’s route. The unique plan included Water Company Highway, however the route was shifted to the coastal path to keep away from demolishing the infrastructure alongside the preliminary route, which impacted institutions like Landmark Seashore Resort.
Umahi emphasised that this reroute was essential to protect worthwhile infrastructure and keep away from widespread destruction. He additionally famous that the Federal Authorities holds the irrevocable proper of means for the venture, making certain its progress whereas mitigating the destruction of present constructions.
Why it issues: The rerouting of the Lagos-Calabar Coastal Freeway highlights the challenges of balancing large-scale infrastructure initiatives with the preservation of present companies and infrastructure. Whereas the brand new alignment protects worthwhile belongings, it additionally disrupts institutions like Landmark Seashore Resort.
This shift emphasizes the significance of considerate planning and session in main initiatives to reduce opposed results on companies whereas nonetheless reaching the broader advantages of nationwide growth.
- Demolition of Landmark Seashore Resort constructions begins as Lagos-Calabar Coastal Freeway progresses
Context: On April 29, 2024, the demolition of constructions at Landmark Seashore Resort in Oniru, Victoria Island, started as a part of the development of the Lagos-Calabar Coastal Freeway. The resort’s encroachment on the freeway’s right-of-way triggered the demolition, which was livestreamed on the resort’s official YouTube channel.
This motion follows the federal authorities’s announcement on April 27, 2024, relating to the elimination of constructions alongside the freeway’s route. Landmark Seashore Resort had sought a reroute to keep away from disruption, citing the unique right-of-way alongside Water Company Highway.
Why it issues: The demolition highlights the challenges companies like Landmark Seashore Resort face when large-scale infrastructure initiatives disrupt operations. Minister of Works, Dave Umahi, emphasised the federal authorities’s proper to the coastal path for the freeway, prioritizing nationwide pursuits.
Regardless of efforts to barter, the resort’s operations are considerably impacted, illustrating the stress between infrastructure growth and the viability of affected companies.
Air Peace expands Lagos-London route with new connections from main Nigerian cities
In April 2024, simply weeks after launching its Lagos-London service, Air Peace expanded the route to incorporate new connections from Abuja, Asaba, Benin, Enugu, Owerri, Warri, and Port Harcourt, permitting passengers from these cities to attach via Lagos for onward flights to London.
This growth adopted an announcement by Air Peace CEO Allen Onyema, who revealed that international airways had slashed their fares considerably after the airline entered the Lagos-London market. The worth cuts from international carriers went even decrease than Air Peace’s preliminary reductions, which Onyema identified have been doubtless aimed toward pushing the native airline out of the competitors.
Why it issues: Air Peace’s growth of the Lagos-London route performed to its energy by leveraging its in depth home community, which covers most main airports in Nigeria.
This strategic transfer elevated comfort for Nigerian vacationers, providing extra connection choices. It additionally intensified competitors, resulting in decrease fares from international carriers and making worldwide journey extra inexpensive for Nigerians.
In December, the airline additional expanded the community by including the Chinua Achebe Worldwide Airport in Anambra to its connections.
FG grants NAEBI Dynamic Idea unique proper to gather helicopter touchdown charges nationwide
Context: In April 2024, the Federal Authorities, via the Ministry of Aviation and Aerospace Growth, approved Messrs NAEBI Dynamic Idea Restricted to completely accumulate helicopter touchdown charges throughout all Nigerian aerodromes, helipads, airstrips, and oil platforms.
The directive mandated instant compliance from all civilian helicopter operators, with sanctions for non-compliance. A flat price of $300 per touchdown was set, and the Ministry emphasised that it might rigorously implement the directive, making certain NAEBI Dynamic Idea Restricted full entry to gather the charges.
Why it issues: The transfer was meant to streamline the gathering of helicopter touchdown charges and doubtlessly improve authorities income. Nonetheless, business gamers complained concerning the exorbitant $300 touchdown cost, which they believed positioned a big monetary burden on operators, particularly smaller ones.
Many additionally questioned the dearth of competitors within the price assortment course of, fearing it may scale back transparency and suppleness inside the sector.
NCAA suspends licenses of three personal jets for conducting business operations
Context: In April 2024, the Nigerian Civil Aviation Authority (NCAA) suspended the Permits for Non-Industrial Flights (PNCF) licenses of not less than three personal jets for partaking in business operations. The PNCF, granted to personal jet house owners, strictly prohibits utilizing their plane for transporting passengers, cargo, or mail for compensation or rent.
This suspension adopted stern warnings from the Minister of Aviation and Aerospace Growth, Festus Keyamo, and the NCAA towards the unauthorized use of personal jets for business functions, with violators dealing with penalties, together with the suspension or revocation of their permits.
Why it issues: The NCAA’s suspension emphasised the necessity for strict adherence to laws governing personal jet operations. It highlighted the significance of stopping personal jet house owners from utilizing their plane for business functions, a apply that had raised issues amongst business gamers about equity and security. By imposing penalties, the NCAA strengthened its dedication to making sure compliance and sustaining the integrity of the aviation sector, defending each operators and passengers.
Aviation Minister approves Abuja-London route for Air Peace
Context: In April 2024, the Minister of Aviation and Aerospace Growth, Festus Keyamo, accredited Air Peace to function the Abuja-London route, increasing the airline’s companies past its present Lagos-London route. Keyamo revealed that the approval was based mostly on reciprocity, as British Airways additionally operates the Abuja-London route alongside the Lagos-London route.
The Aviation Minister famous that this approval may spark a value battle on the route, doubtlessly driving down fares for Nigerian passengers. Nonetheless, the Abuja-London route has but to be launched by Air Peace.
Why it issues: The approval of the Abuja-London route underscores the federal authorities’s help for native airways and its efforts to make sure reciprocity underneath Bilateral Air Companies Agreements (BASA). Whereas the route has but to go stay, the choice highlights the function of Nigerian carriers in growing competitors inside the Nigeria-UK aviation market. Though a value battle may influence airline profitability, it’s anticipated to learn passengers by decreasing fares.
Worldwide plane lessors say Nigeria’s native insurance coverage market can’t deal with dry-lease dangers – Keyamo
Context: In April 2024, Festus Keyamo, the Minister of Aviation and Aerospace Growth, revealed that worldwide plane lessors and producers require insurance coverage sourced from the worldwide market, not domestically, earlier than leasing plane to Nigeria on dry-lease phrases.
He famous issues from lessors concerning the capability of Nigeria’s native insurance coverage market to deal with the related dangers. Whereas Nigeria’s Nationwide Insurance coverage Fee mandates native insurance coverage for all home dangers, Keyamo identified that to satisfy the calls for of worldwide lessors, Nigerian insurers would wish to hunt reinsurance overseas, growing prices for native operators.
Why it issues: The problem highlights a key problem in attracting worldwide plane lessors to Nigeria, as native insurers lack the capability to cowl aviation dangers. Resolving this might decrease leasing prices for Nigerian airways, enhance entry to plane, and foster progress within the native aviation sector. Keyamo’s proposed discussions with NAICOM goal to create a extra favorable atmosphere for worldwide leasing whereas sustaining native content material.
U.S.-Nigeria Air Transport Bilateral Settlement goes stay 24 years after first announcement
After 24 years of provisional software, the U.S.-Nigeria Air Transport Settlement formally got here into power on Could 13, 2024. This settlement aligns with the U.S. Open Skies coverage and establishes a contemporary civil aviation relationship between the 2 nations.
It affords provisions for unrestricted flight capability, open route rights, liberal constitution laws, and enhanced code-sharing alternatives. The settlement goals to enhance aviation security and safety whereas selling financial and business ties between the U.S. and Nigeria. It additionally offers airways with the power to supply extra inexpensive, handy, and environment friendly companies, boosting tourism and commerce.
Why it issues: The U.S.-Nigeria Air Transport Settlement marks a big step in liberalizing the aviation sector in Africa, offering Nigerian airways with better operational flexibility and world market entry.
It will assist Nigerian carriers increase their worldwide attain, improve competitors, and enhance service choices. It additionally fosters progress within the journey and cargo sectors, benefiting each passengers and companies.
FG suspends $300 helicopter touchdown levy one month after implementation
Context: In June 2024, the Federal Authorities, via the Ministry of Aviation and Aerospace Growth, suspended the $300 helicopter touchdown levy imposed by Messrs NAEBI Dynamic Idea Restricted.
This determination got here only a month after the corporate was granted unique rights to gather the levy nationwide. The suspension was prompted by issues raised by business stakeholders, although the concession and mandate to gather the levy remained in place.
A committee was fashioned to deal with these issues and create a framework for compliance that advantages all events concerned.
Why it issues: The suspension highlights the stress between government-imposed charges and the issues of business gamers, notably helicopter operators.
Stakeholders raised points concerning the levy’s monetary burden, the dearth of corresponding infrastructure, and the fee system. Resolving these issues is crucial to making sure the sustainable progress of Nigeria’s aviation sector, in addition to sustaining a good and clear framework for all concerned.
Q3 2024
NCAA suspends permits of 10 personal jet operators for ignoring recertification directive
Context: In July 2024, the Nigeria Civil Aviation Authority (NCAA) suspended the Permits for Non-Industrial Flights (PNCF) licenses of 10 personal jet operators for failing to adjust to a recertification directive issued earlier in April.
The directive, aimed toward curbing the misuse of personal jets for business functions, required operators to finish the recertification course of by April 19, 2024. The affected operators had not initiated the required steps to adjust to the directive, ensuing within the suspension of their licenses.
Why it issues: This suspension emphasizes the NCAA’s dedication to imposing laws that stop the misuse of personal jets for business actions, which may undermine the integrity of Nigeria’s aviation business.
It highlights the significance of compliance with security and operational requirements, making certain that personal jet operations are correctly regulated. The motion additionally alerts the NCAA’s proactive stance in safeguarding the sector’s integrity, doubtlessly influencing future operations and compliance throughout the business.
Funso Doherty Sues FG, BPP, and Hitech Development over alleged authorized violations in Lagos-Calabar Coastal Highway venture
Context: In August 2024, Funso Doherty filed a lawsuit towards the Federal Authorities, the Bureau of Public Procurement (BPP), and Hitech Development over alleged illegalities within the awarding and initiation of the Lagos-Calabar Coastal Highway venture.
Doherty argued that the contract violated the Public Procurement Act and the Environmental Impression Evaluation Act, because it lacked aggressive bidding and didn’t conduct essential environmental assessments. He sought to halt the venture and demanded compliance with these authorized frameworks, claiming the actions threatened public security and the area’s financial stability.
Why it issues: Doherty’s lawsuit highlights issues about transparency and authorized compliance within the Lagos-Calabar Coastal Highway venture, echoing criticisms from figures like Atiku Abubakar. It underscores the necessity for strict adherence to procurement and environmental legal guidelines to safeguard public welfare, financial stability, and authorized requirements in large-scale infrastructure initiatives.
Ethiopian Airways CEO blames politicization, native airways’ resistance for Nigeria Air’s failure
Context: In August 2024, Ethiopian Airways CEO, Mesfin Tasew Bekele, attributed the failure of the Nigeria Air venture to politicization and resistance from native Nigerian airways. Regardless of efforts to collaborate with the Nigerian authorities and institutional traders, Bekele identified that Nigerian airways opposed the venture, contributing to its eventual abandonment.
Why it issues: Regardless of its attraction to Ethiopian Airways, the Nigeria Air venture confronted vital home opposition, leading to its suspension in 2024. The venture was criticized by the Home of Representatives in June 2023 for a fraudulent launch, reflecting issues over its legitimacy. The venture’s challenges additionally led to the prosecution of former Aviation Minister Hadi Sirika by the EFCC for alleged cash laundering, contract fraud, and points surrounding Nigeria Air, elevating questions concerning the integrity of its execution.
Nigeria Air deal would have seen Nigeria pay Ethiopian Airways $112 million over 3 years –Festus Keyamo
Context: In September 2024, Aviation Minister Festus Keyamo revealed that the suspended Nigeria Air deal would have required Nigeria to pay Ethiopian Airways roughly $112 million over three years for using its surplus plane.
He identified that this association would have granted Ethiopian Airways a dominant place within the new nationwide provider, with the earnings benefiting Ethiopia greater than Nigeria. The deal additionally positioned Ethiopian Airways as a majority stakeholder with a 49% share, granting them vital management over Nigeria Air’s operations.
Why it issues: Keyamo’s revelations highlighted the numerous dangers for Nigeria, together with the lack of Bilateral Air Service Settlement (BASA) rights and management over its aviation sector. The phrases additionally uncovered Nigeria to monetary dangers via tax exemptions and indemnity clauses that might have shifted losses onto the federal government. Moreover, the deal would have concentrated key administration roles with Ethiopian Airways, limiting Nigeria’s decision-making energy in its nationwide provider.
FEC approves N158 billion contract for Dangote to construct Lekki Port service lanes to Shagamu-Benin Expressway
Context: In September 2024, the Federal Government Council (FEC) accredited a N158 billion contract for the development of service lanes linking the Lekki Deep Sea Port via Epe to the Shagamu-Benin Expressway.
The venture, managed by Dangote Industries, can be funded via the Federal Authorities’s Highway Infrastructure Growth Fund and the Refurbishment Funding Tax Credit score Scheme. This initiative goals to alleviate visitors congestion in Lagos, particularly across the Lekki Free Commerce Zone, and enhance the motion of products, enhancing connectivity to different areas.
Why it issues: The venture is essential for addressing Lagos’ visitors points and boosting regional logistics. By utilizing the Highway Infrastructure Growth Fund and Tax Credit score Scheme, the federal government encourages personal sector funding, with Dangote Industries receiving tax credit in return. This public-private partnership accelerates infrastructure growth, reduces authorities expenditure, and strengthens Nigeria’s financial connectivity.
This autumn 2024
NRC grants Lagos a 3-year license for Blue Line, 6-month momentary license for Crimson Line
In October 2024, the Nigerian Railway Company (NRC) granted Lagos a three-year operational license for the Blue Line and a six-month momentary license for the Crimson Line.
The licenses have been offered to the Lagos Metropolitan Space Transport Authority (LAMATA) after a radical evaluation of the Blue Line’s infrastructure and operations, together with the testing of the Crimson Line.
The momentary license for the Crimson Line’s first part, from Oyingbo to Agbado, was granted simply days earlier than its scheduled passenger operations on October 15, 2024. Everlasting approval for the Crimson Line remains to be pending additional assessments
Why it issues: The licensing marks a pivotal transfer in increasing Lagos’ city transport community, easing visitors congestion, and selling sustainable public transit. It highlights the growing involvement of state governments in managing transport infrastructure.
Nonetheless, issues stay over NRC’s twin function as each regulator and operator, which may current conflicts of curiosity. This milestone is important; because it marks the primary time a non-NRC entity will function trains in Nigeria.
Nigeria exits Aviation Working Group watchlist with 75.5% compliance on Cape City Conference index
Context: In October, Nigeria exited the Aviation Working Group (AWG) watchlist after reaching a 75.5% compliance rating on the Cape City Conference (CTC) Compliance Index. This adopted a September improve from 49 to 70.5, pushed by the issuance of the Federal Excessive Courtroom (Cape City Conference and Plane Protocol) Apply Path, 2024.
The directive ensures full compliance with the CTC by prioritizing its provisions in related circumstances, setting strict timelines for imposing treatments, and requiring recognition of international court docket orders inside 10 days.
Why it issues: Exiting the AWG watchlist improves Nigerian airways’ entry to world plane leasing markets, enabling fleet growth and improved route protection. Nonetheless, addressing worldwide lessors’ issues over native insurers’ capability to deal with dry-lease dangers stays important for totally realizing these advantages.
Air Peace CEO Allen Onyema charged with obstruction of justice in ongoing U.S. fraud case
Context: In October, Allen Onyema, Chairman and CEO of Air Peace, confronted new expenses of obstruction of justice in the USA. Onyema, alongside Air Peace’s Chief of Administration and Finance, Ejiroghene Eghagha, had beforehand been charged with bank fraud and cash laundering.
U.S. authorities allege that between 2016 and 2018, Onyema and Eghagha used fraudulent export letters of credit score to switch over $20 million to U.S. accounts underneath the pretense of buying Boeing 737 plane.
Investigations revealed falsified paperwork and hyperlinks to Springfield Aviation, an organization owned by Onyema with no respectable aviation actions. The brand new expenses stem from makes an attempt to submit backdated contracts to halt the investigation.
Why it issues: The case sheds gentle on transparency issues surrounding certainly one of Nigeria’s main airways, Air Peace, which performs a crucial function within the nation’s aviation sector. Allegations of fraud and obstruction may have an effect on the airline’s repute and partnerships, doubtlessly disrupting its operations and stakeholder confidence. Nonetheless, Onyema and Eghagha stay harmless till confirmed responsible, because the U.S. authorities should set up the costs past an affordable doubt through the trial.
Air Peace: U.S. govt seeks forfeiture of Allen Onyema’s $14 million belongings in amended fraud case
Context: In October, Nairametrics obtained unique info from the U.S. District Courtroom for the Northern District of Georgia relating to a superseding indictment towards Allen Ifechukwu Athan Onyema, CEO of Air Peace. The indictment particulars 35 counts, together with conspiracy to commit bank fraud, credit score software fraud, and cash laundering.
The U.S. authorities has requested the forfeiture of roughly $14 million in belongings linked to Onyema, particularly funds in accounts related to Springfield Aviation Inc. and Blue Stream Aero Companies, Inc. If these belongings can’t be recovered, equal properties belonging to the defendants can be pursued.
Why it issues: This case underscores crucial issues concerning the monetary integrity of certainly one of Nigeria’s main airways, Air Peace, doubtlessly affecting its repute and operations. Whereas the authorized course of unfolds, Onyema stays harmless till confirmed responsible, with the U.S. authorities required to substantiate its claims past an affordable doubt.
FG mandates international airways to make use of Nigerian caterers for on-board meals from January 2025
Context: In October, the Federal Authorities mandated that each one outbound flights from Nigeria, together with international airways, should use native caterers for onboard meals beginning January 1, 2025.
Aviation Minister Festus Keyamo clarified that the directive requires airways to have interaction Nigerian caterers, not essentially serve Nigerian dishes. He assured that native caterers meet worldwide requirements and are topic to strict high quality management to make sure hygiene and security.
Why it issues: This coverage goals to help Nigeria’s native catering companies, stimulate financial progress, and create jobs. It additionally emphasizes prioritizing home industries in aviation, though sustaining high quality requirements can be important for gaining the boldness of worldwide airways.
Emirates Airways resumes Nigeria operations as first flight since 2022 lands at MMIA (Oct)
Context: Emirates Airways resumed flights to Nigeria on October 1, 2024, with Flight EK 783 touchdown at Murtala Muhammad Worldwide Airport.
The airline suspended operations in 2022 on account of difficulties in repatriating trapped funds, regardless of assurances from the Central Bank of Nigeria (CBN).
The suspension was lifted following a diplomatic settlement between Nigerian President Bola Tinubu and UAE President in October 2023.
Why it issues: Emirates’ return to Nigeria alerts the decision of a big monetary and diplomatic concern, bettering connectivity between Nigeria and the UAE. The resumption additionally opens up alternatives for Nigerian airways, as the federal government secured reciprocal flight rights for Nigerian carriers to function within the UAE, fostering bilateral commerce and journey.
Lagos govt to concession Crimson and Blue Line rails for sustainability, mortgage reimbursement
Context: In November, the Lagos State Authorities introduced plans to concession the operations of the Crimson and Blue Line rail techniques to the personal sector.
The transfer is meant to make sure the sustainability of the rail initiatives and facilitate the reimbursement of loans taken for his or her growth.
Commissioner for Transportation, Oluwaseun Osiyemi, defined that the concessioning would contain transferring the operations to personal firms for a specified interval, throughout which international companions will handle the techniques and prepare native personnel. After one to 2 years, administration can be totally handed over to Nigerian operators.
Why it issues: The plan goals to deal with the monetary and technical challenges of working the rail techniques, however specialists categorical skepticism because of the present low ridership of the Blue Line, which has solely seen 2.37 million passengers in 15 months. Moreover, the system’s low frequency and excessive operational prices could deter personal traders, making it unsure whether or not the concession can obtain the meant targets.
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