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 tasks 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 12 months involves an in depth, 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, authorized the development of the Lagos-Port Harcourt-Calabar Coastal Superhighway. Messrs Hitech Building Africa was entrusted with the undertaking, to start with the 47-kilometer Part 1 in Lagos State.
The freeway, spanning 700 kilometers throughout 9 states, goals to boost connectivity and financial progress alongside Nigeria’s shoreline. The preliminary design consists of 10 lanes, with twin rail traces working via the middle of the principle carriageways, and 11-inch-thick concrete roads bolstered with 20-millimeter metal.
Why it issues: That is the primary large-scale undertaking authorized by FEC below President Tinubu’s administration. Nevertheless, 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.
Because the 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 will probably be tolled to recoup the funding.
Gov. Sanwo-Olu procures extra rail inventory for Purple 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 Purple 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 Building Company (CCECC).
The announcement got here weeks earlier than President Bola Tinubu was set to fee the primary part of the Purple 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 immediately tied to the supply of trains. Extra rolling inventory is essential for rising 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 Purple Line
Context: In February 2024, President Bola Tinubu commissioned the primary part of the Lagos Rail Mass Transit (LRMT) Purple Line at Ikeja Practice Station, 30 months after development started in April 2021. The 27-kilometer Part 1 of the 37-kilometer Purple Line runs from Agbado in Ogun State to Oyingbo, with eight stations.
The occasion additionally marked the settlement for the second part of the undertaking, a collaboration between Lagos State, the Lagos Metropolitan Space Transport Authority (LAMATA), and the undertaking’s contractor, CCECC.
The Purple Line was designed to drastically lower journey time, with a 40-minute journey from Agbado to Oyingbo. Gov Sanwo-Olu disclosed that the undertaking 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 Purple Line Part 1 is the second rail line constructed by the Lagos State Authorities. It helps the state’s efforts to scale back non-public automotive 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 Improvement, 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 guaranteeing 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 provides Nigerian vacationers a major worth discount, with tickets now extra inexpensive in comparison with the fares charged by international carriers. This transfer not solely offers price financial savings but additionally promotes competitors, which might result in additional worth reductions and improved companies within the Nigerian aviation sector.Q2 2024.
Q2 2024
Overseas airways decreasing 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 diminished 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 alternate charge.
Nevertheless, after Air Peace launched fares as little as N1.2 million for economic system and N4.5 million for enterprise class, international airways swiftly diminished their costs, regardless of no vital shift within the alternate charge. Onyema urged that this price-cutting technique was a deliberate try to pressure Air Peace out of the market.
Why it issues: Passengers benefited from decrease fares, as international airways diminished their costs in response to Air Peace’s entry. Nevertheless, consultants raised issues that international carriers decreasing fares under break-even factors to oust an area competitor was a questionable enterprise apply. Such techniques might 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 similar 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 supply floor handlers promptly. He speculated that these disruptions have been a part of a method to pressure Air Peace out of Gatwick below the 80/20 slot rule, which requires airways to keep up a excessive on-time departure charge to retain their slots.
Why it issues: The allegations in opposition to Gatwick Airport increase issues about native airways’ challenges when increasing operations overseas. Such actions might undermine competitors and disrupt the expansion of worldwide routes for native carriers. Nevertheless, Onyema has not made related claims since then.
Landmark Seaside Resort seeks reroute of Lagos-Calabar Coastal Freeway
In April 2024, the administration of Landmark Seaside 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 tasks can disrupt companies like Landmark Seaside Resort, a multibillion-dollar enterprise offering employment. Some argue that such infrastructure tasks serve the higher good, even when they injury companies.
Nevertheless, others contend that companies contributing to native economies and employment must be thought of within the planning course of. This pressure displays the challenges of balancing nationwide improvement with defending livelihoods, making it a key second in Nigeria’s transportation sector in 2024.
Atiku criticizes Lagos-Calabar Coastal Freeway undertaking 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 Building Africa. Atiku questioned the undertaking’s transparency, highlighting the dearth of aggressive bidding.
He identified discrepancies within the statements made by Works Minister Dave Umahi, who initially claimed the undertaking 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 undertaking 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 tasks. His criticisms, echoed by figures like Funso Doherty, draw consideration to the dangers of opaque decision-making and its potential affect 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 tasks to stop conflicts of curiosity and defend stakeholders’ pursuits.
Lagos-Calabar Coastal Freeway Proper of Approach 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 Seaside Resort.
Umahi emphasised that this reroute was essential to protect invaluable infrastructure and keep away from widespread destruction. He additionally famous that the Federal Authorities holds the irrevocable proper of means for the undertaking, guaranteeing its progress whereas mitigating the destruction of present buildings.
Why it issues: The rerouting of the Lagos-Calabar Coastal Freeway highlights the challenges of balancing large-scale infrastructure tasks with the preservation of present companies and infrastructure. Whereas the brand new alignment protects invaluable property, it additionally disrupts institutions like Landmark Seaside Resort.
This shift emphasizes the significance of considerate planning and session in main tasks to reduce hostile results on companies whereas nonetheless attaining the broader advantages of nationwide improvement.
- Demolition of Landmark Seaside Resort buildings begins as Lagos-Calabar Coastal Freeway progresses
Context: On April 29, 2024, the demolition of buildings at Landmark Seaside 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 buildings alongside the freeway’s route. Landmark Seaside 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 Seaside Resort face when large-scale infrastructure tasks 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 strain between infrastructure improvement 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 enlargement adopted a press release 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 probably aimed toward pushing the native airline out of the competitors.
Why it issues: Air Peace’s enlargement of the Lagos-London route performed to its power 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 Improvement, licensed Messrs NAEBI Dynamic Idea Restricted to solely gather helicopter touchdown charges throughout all Nigerian aerodromes, helipads, airstrips, and oil platforms.
The directive mandated rapid 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, guaranteeing NAEBI Dynamic Idea Restricted full entry to gather the charges.
Why it issues: The transfer was supposed to streamline the gathering of helicopter touchdown charges and probably enhance authorities income. Nevertheless, business gamers complained concerning the exorbitant $300 touchdown cost, which they believed positioned a major monetary burden on operators, particularly smaller ones.
Many additionally questioned the dearth of competitors within the price assortment course of, fearing it might cut back transparency and adaptability throughout the sector.
NCAA suspends licenses of three non-public jets for conducting industrial operations
Context: In April 2024, the Nigerian Civil Aviation Authority (NCAA) suspended the Permits for Non-Industrial Flights (PNCF) licenses of at the very least three non-public jets for participating in industrial operations. The PNCF, granted to personal jet homeowners, 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 Improvement, Festus Keyamo, and the NCAA in opposition to the unauthorized use of personal jets for industrial 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 rules governing non-public jet operations. It highlighted the significance of stopping non-public jet homeowners from utilizing their plane for industrial functions, a apply that had raised issues amongst business gamers about equity and security. By implementing penalties, the NCAA bolstered 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 Improvement, Festus Keyamo, authorized 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 might spark a worth warfare on the route, probably driving down fares for Nigerian passengers. Nevertheless, 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 below Bilateral Air Companies Agreements (BASA). Whereas the route has but to go reside, the choice highlights the position of Nigerian carriers in rising competitors throughout the Nigeria-UK aviation market. Though a worth warfare might affect 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 Improvement, 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 fulfill the calls for of worldwide lessors, Nigerian insurers would want to hunt reinsurance overseas, rising 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 intention to create a extra favorable surroundings for worldwide leasing whereas sustaining native content material.
U.S.-Nigeria Air Transport Bilateral Settlement goes reside 24 years after first announcement
After 24 years of provisional software, the U.S.-Nigeria Air Transport Settlement formally got here into pressure on Might 13, 2024. This settlement aligns with the U.S. Open Skies coverage and establishes a contemporary civil aviation relationship between the 2 international locations.
It provides provisions for unrestricted flight capability, open route rights, liberal constitution rules, and enhanced code-sharing alternatives. The settlement goals to enhance aviation security and safety whereas selling financial and industrial 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 major step in liberalizing the aviation sector in Africa, offering Nigerian airways with higher operational flexibility and international market entry.
This may assist Nigerian carriers develop their worldwide attain, enhance 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 Improvement, suspended the $300 helicopter touchdown levy imposed by Messrs NAEBI Dynamic Idea Restricted.
This resolution 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 shaped to handle these issues and create a framework for compliance that advantages all events concerned.
Why it issues: The suspension highlights the strain 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 cost system. Resolving these issues is important 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 non-public 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 non-public 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 industrial functions, required operators to finish the recertification course of by April 19, 2024. The affected operators had not initiated the mandatory steps to adjust to the directive, ensuing within the suspension of their licenses.
Why it issues: This suspension emphasizes the NCAA’s dedication to implementing rules that stop the misuse of personal jets for industrial actions, which might undermine the integrity of Nigeria’s aviation business.
It highlights the significance of compliance with security and operational requirements, guaranteeing that personal jet operations are correctly regulated. The motion additionally indicators the NCAA’s proactive stance in safeguarding the sector’s integrity, probably influencing future operations and compliance throughout the business.
Funso Doherty Sues FG, BPP, and Hitech Building over alleged authorized violations in Lagos-Calabar Coastal Highway undertaking
Context: In August 2024, Funso Doherty filed a lawsuit in opposition to the Federal Authorities, the Bureau of Public Procurement (BPP), and Hitech Building over alleged illegalities within the awarding and initiation of the Lagos-Calabar Coastal Highway undertaking.
Doherty argued that the contract violated the Public Procurement Act and the Environmental Affect Evaluation Act, because it lacked aggressive bidding and didn’t conduct obligatory environmental assessments. He sought to halt the undertaking 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 undertaking, 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 tasks.
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 undertaking to politicization and resistance from native Nigerian airways. Regardless of efforts to collaborate with the Nigerian authorities and institutional buyers, Bekele identified that Nigerian airways opposed the undertaking, contributing to its eventual abandonment.
Why it issues: Regardless of its enchantment to Ethiopian Airways, the Nigeria Air undertaking confronted vital home opposition, leading to its suspension in 2024. The undertaking was criticized by the Home of Representatives in June 2023 for a fraudulent launch, reflecting issues over its legitimacy. The undertaking’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 the usage of its surplus plane.
He identified that this association would have granted Ethiopian Airways a dominant place within the new nationwide provider, with the income 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 would 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) authorized a N158 billion contract for the development of service lanes linking the Lekki Deep Sea Port via Epe to the Shagamu-Benin Expressway.
The undertaking, managed by Dangote Industries, will probably be funded via the Federal Authorities’s Highway Infrastructure Improvement Fund and the Refurbishment Funding Tax Credit score Scheme. This initiative goals to alleviate site 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 undertaking is essential for addressing Lagos’ site visitors points and boosting regional logistics. Through the use of the Highway Infrastructure Improvement Fund and Tax Credit score Scheme, the federal government encourages non-public sector funding, with Dangote Industries receiving tax credit in return. This public-private partnership accelerates infrastructure improvement, reduces authorities expenditure, and strengthens Nigeria’s financial connectivity.
This fall 2024
NRC grants Lagos a 3-year license for Blue Line, 6-month short-term license for Purple Line
In October 2024, the Nigerian Railway Company (NRC) granted Lagos a three-year operational license for the Blue Line and a six-month short-term license for the Purple Line.
The licenses have been introduced to the Lagos Metropolitan Space Transport Authority (LAMATA) after an intensive evaluation of the Blue Line’s infrastructure and operations, together with the testing of the Purple Line.
The short-term license for the Purple 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 Purple Line continues to be pending additional assessments
Why it issues: The licensing marks a pivotal transfer in increasing Lagos’ city transport community, easing site visitors congestion, and selling sustainable public transit. It highlights the rising involvement of state governments in managing transport infrastructure.
Nevertheless, issues stay over NRC’s twin position as each regulator and operator, which might 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 attaining a 75.5% compliance rating on the Cape City Conference (CTC) Compliance Index. This adopted a September enhance from 49 to 70.5, pushed by the issuance of the Federal Excessive Court docket (Cape City Conference and Plane Protocol) Apply Route, 2024.
The directive ensures full compliance with the CTC by prioritizing its provisions in related instances, setting strict timelines for implementing treatments, and requiring recognition of international court docket orders inside 10 days.
Why it issues: Exiting the AWG watchlist improves Nigerian airways’ entry to international plane leasing markets, enabling fleet enlargement and improved route protection. Nevertheless, 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 costs 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 below the pretense of buying Boeing 737 plane.
Investigations revealed falsified paperwork and hyperlinks to Springfield Aviation, an organization owned by Onyema with no official aviation actions. The brand new costs stem from makes an attempt to submit backdated contracts to halt the investigation.
Why it issues: The case sheds mild on transparency issues surrounding one in every of Nigeria’s main airways, Air Peace, which performs a important position within the nation’s aviation sector. Allegations of fraud and obstruction might have an effect on the airline’s fame and partnerships, probably disrupting its operations and stakeholder confidence. Nevertheless, Onyema and Eghagha stay harmless till confirmed responsible, because the U.S. authorities should set up the fees past an affordable doubt in the course of the trial.
Air Peace: U.S. govt seeks forfeiture of Allen Onyema’s $14 million property in amended fraud case
Context: In October, Nairametrics obtained unique info from the U.S. District Court docket for the Northern District of Georgia relating to a superseding indictment in opposition to 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 property linked to Onyema, particularly funds in accounts related to Springfield Aviation Inc. and Blue Stream Aero Companies, Inc. If these property can’t be recovered, equal properties belonging to the defendants will probably be pursued.
Why it issues: This case underscores important issues concerning the monetary integrity of one in every of Nigeria’s main airways, Air Peace, probably affecting its fame 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 every 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 interact 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 will probably be important for gaining the arrogance 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 indicators the decision of a major monetary and diplomatic difficulty, enhancing 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 Purple and Blue Line rails for sustainability, mortgage compensation
Context: In November, the Lagos State Authorities introduced plans to concession the operations of the Purple and Blue Line rail techniques to the non-public sector.
The transfer is meant to make sure the sustainability of the rail tasks and facilitate the compensation of loans taken for his or her improvement.
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 practice native personnel. After one to 2 years, administration will probably be totally handed over to Nigerian operators.
Why it issues: The plan goals to handle the monetary and technical challenges of working the rail techniques, however consultants 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 might deter non-public buyers, making it unsure whether or not the concession can obtain the supposed objectives.
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