Daily Archives: December 6, 2013

Benue Budgets N105bn for 2014 Fiscal Year

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The Benue State government plans to spend the sum of N105.1 billion for the 2014 fiscal year.  Out of the amount, N41.6 billion is for capital expenditure while the sum of  N37.1 billion  is for personnel costs, N26.3 billion is for overhead costs.
 
The 2014 budget proposal is N31.3billion less than the N136.4billion approved budget for 2013.
 
The State Governor, Rt. Hon. Gabriel Suswam, who presented the 2014 appropriation proposals to the State House of Assembly, said his administration decided to propose a realistic budget for fiscal 2014 since it was the only full year budget before expiration of his tenure in May 2015.
 
He added that he  is  conscious of the dwindling accruals from the federation account, which he said  is the main source of the state’s revenue.
 
Christened “Budget of growth, revitalisation and transformation”, the governor said the 2014 budget would concentrate on completion of on-going projects across the state.
 
He said concerted efforts would be made to improve on the state’s internally-generated revenue which stood at about N6billion in the 2013 fiscal year.
 
Under the SURE-P     job programme, the Suswan said 2,000 jobs will be for unemployed graduates in the civil service, to earn N20,000 each per month;500 jobs for nurses and other medical personnel for the health sector, 500 jobs each for teachers and sports while environmental sanitation will have 2,500 jobs and skills acquisition will attract 2,000 jobs, all of which will be placed on a monthly stipend of N10,000 each.
 
The governor announced the setting up of a joint committee of the legislature and the executive arms of government headed by Secretary to the State Government to monitor constituency projects usually embarked upon annually in the respective constituencies of the state legislators.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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Oil Revenue Decline Raises Concern over 2014 Budget

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The decline in Nigeria’s crude oil revenue this year may negatively affect the budget framework for 2014, a report has stated.
 
The report noted that this might make the federal government to initiate policies such as an increase in taxation, subsidy removal or the enforcement of due process going forward.
 
The Managing Director/Chief Executive Officer, Financial Derivatives Company Limited (FDC), Mr. Bismarck Rewane, stated this in a report presented at the Lagos Business School, a copy of which was obtained yesterday.
 
The federal government last week said it was targeting N2.95 trillion in tax revenue from the non-oil sector in 2014 by tightening the noose around tax evaders.
 
Coordinating Minister for the Economy and Minister  Finance, Dr. Ngozi Okonjo-Iweala, said over 75 per cent of small-scale business operators had the penchant for tax evasion in the country.
However, commenting on the events to watch in 2014, Rewane argued that there could be an oil price shock which may cause prices to decrease on increased supplies and relative calm in the Middle-east. This could translate to less revenue to the government.
 
Furthermore, Rewane pointed out that there may be a depreciation of the naira and further hike in the Cash Reserve Requirement (CRR).
 
He also noted that the anticipated hike in CRR would lead to mopping up of liquidity and thereby impacting on banks’ profitability. Specifically, he argued that 30 per cent of banks’ profit may be eroded.
 
“Banks may remain attractive despite impact on profits. The Central Bank of Nigeria (CBN) targets a low-inflation rate of six to nine per cent in 2014. Further monetary policy tightening anticipated in January. Coordination between fiscal and monetary policy required to ensure stability,” he added.
 
According to Rewane, the rapidly-growing internet penetration in the country increases the use of smart phones and tablets. The number of active mobile GSM lines rose to about 118 million in September 2013, from 109 million at the end of 2012.
 
Mobile internet data subscription also improved to 50 million subscribers in July 2013, from 31 million subscribers in 2012.
He listed some of the challenges in the retail industry to include huge Infrastructure deficit estimated at $360 billion, lack of inclusive growth, weak productivity compared to global standards and inadequate access to finance. Others include high administrative cost, export performance which had been dampened by slowdown in commodity prices, regulatory pressure and political impasse.
 
Rewane described 2013 as a year of mixed fortunes for the country, noting that while inflation, money supply, stock market capitalisation improved; government revenue, the parallel exchange rate, external reserves, excess crude account,  aviation safety declined.
 
“If oil prices fall below $100 per barrel and production is flat, there will be increased rate of depletion of external reserves, about 20-25 per cent revenue shortfall resulting in a wider fiscal deficit beyond benchmark of three per cent of GDP or $9billion.
"Depreciation of the naira in all market segments.
 
Increased domestic and foreign borrowing by two per cent and tinkering with exchange control regulations,” he added.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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FRC Urges More Firms to Adopt IFRS

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The Financial Reporting Council of Nigeria (FRC) has advised more organisations in the country to adopt the International Financial Reporting Standards (IFRS) to boost the country’s development and attract foreign direct investment (FDI).
 
The Chief Executive Officer of the FRC, Mr. Jim Obazee stated this at the 10th annual corporate financial reporting summit held in Lagos yesterday.
Obazee noted that in an increasingly interconnected global economy, many markets participants had been questioning whether it was possible or desirable to move toward a more uniform global language for financial reporting.
 
According to him, the proponents of such arguments had argued that a uniform set of globally-accepted high quality accounting standards, supported by strong governance, independence standard- setting and a sound regulatory framework could benefit investors and business alike.
 
Speaking on the investment opportunities for Nigerian companies if they adopt the IFRS, Obazee said: “Notice that in recent times a number of Nigerian companies have raised capital from international stock markets and some others have established significant presence in other jurisdiction. Also, a good number of Nigerian entities hold securities of non-Nigerian issuers.
 
“Therefore, for a better understanding and appreciation of the risk and consequences in making decisions about the flow of economic capital, it makes sense that financial statements prepared in Nigeria use global financial reporting benchmark.”
He also explained that the IFRS did not make it complex for investors and other users of financial information to understand accounting statements.
 
He added: “IFRS is more principle-based set of accounting standards than national accounting standards. As such it allows companies and auditors to focus less on strict adherence to detailed requirements and instead concentrate on providing a clear statement of an entity’s assessment of the economic realities of its business activities.”
 
Also speaking at the summit, the Group Managing Director/Chief Executive Officer of First Bank Nigeria Limited, Mr. Bisi Onasanya, pointed out that it would be difficult to separate governance from financial reporting, saying that “at the heart of financial misreporting is weak governance.”
 
According to Onasanya, any organisation that wants good financial reporting to strive, must create an environment for people who make mistakes to come out openly to admit they had made mistakes.
 
He further said: “Every strong organisation must have a strong internal audit to review the management account, no matter how short before it is presented to external bodies. When CEOs are also remunerated based on their profit they make, you put them under pressure."

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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Union Dicon Shares Rise Further at Stock Market

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In line with its resolve to continue to defend the naira, the Central Bank of Nigeria (CBN) sold a total of $2.40 billion to dealers at its regulated Retail Dutch Auction System (RDAS) in November as against the $2.39 billion sold in October.
 
However, the central bank offered a total of $2.45 billion, representing a reduction by 6.12 per cent, over the $2.60 billion offered in October.
 
But FSDH Merchant Bank Limited, in its review of the activities in the money market in November, put the cumulative net outflow from the government securities and forex market in November at N610.37 billion.
 
In addition, in November, the value of the naira against the dollar appreciated at the interbank and official market segments of the forex market, while it depreciated at the parallel market, compared to October. At the interbank market, the naira appreciated by 45kobo to close at N158.45/$1 from the N158.90/$1 recorded in October. At the official market segment, the naira also gained eight kobo to close at N155.72/$1 from N155.80/$1 recorded in the preceding month, while at the parallel market, the naira depreciated by 250 kobo to close at N168.50/$1 from the N166/$1 recorded in October.
 
Nevertheless, the money market rate was marginally higher in November, compared to October. The relative tightness in the market was attributed to the continued use of the Open Market Operations (OMO) by the CBN to moderate the liquidity level in the system, due to huge maturities repayment of government securities.
 
It also noted that the sale of forex by the central bank contributed to the tightness in November.  Consequently, the average money market rates were marginally higher in November, compared to October.
 
The 7-day NIBOR opened the month of November at 11.13 per cent, compared to 10.92 per cent in October. Similarly, the 90-day NIBOR opened the month of November at 12.58 per cent, compared to 11.75 per cent in October, and increased by 288 basis points to a month high of 15.46 per cent on November 15, 2013.
 
It also stated that the mop-up activities of the CBN influenced the direction of the NIBOR in the review period.
 
At the 91-day treasury bills auction, a total of N42.71 billion worth of securities was offered and sold to competitive bidders in November. The bill was 169.66 per cent subscribed as N72.46 billion worth of bid was received from competitive bidders.
 
On the other hand, a total of N42.71 billion worth of matured bills was repaid into the system leading to a net nil flow from this segment of the market. At the 182-day treasury bills, auction, a total of N55 billion worth of securities was offered and sold to competitive bidders in November.
 
At the OMO transactions held in November, there was a total outflow of about N367.12 billion from the system, while there was a total inflow of N130.46 billion, leading to a net outflow of N236.66 billion from this segment of the market.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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Oando Partners RMB, Stanbic IBTC on N28bn Office Project

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As part of efforts to boost its assets base and deliver value to shareholders and other stakeholders, Oando Plc has entered into a partnership with Rand Merchant Bank (RMB) and Stanbic IBTC Bank Plc on its new head office.
 
RMB and Stanbic are providing long-term funding for the Oando Plc, which  has been estimated at $182 million(N28 billion).
 
The building located on the Ozumba Mbadiwe Drive, Victoria Island, Lagos is dubbed “The Wings Project.” It was envisioned seven years ago by Oando as  a monolithic, but innovative 21st century structure.
 
It  is strategically positioned along the highly sought after Victoria Island waterfront, which will comprise of two identical 15 storey glass towers sitting on a plinth that houses several car park floors, restaurants, gymnasiums, and a jetty.
 
Apart from RMB and Stanbic IBTC that are providing the funding, Oando also  hired the services of Argentil Capital Partners to  ensure all fiscal procedures were adhered to.
 
Argentil Capital Partners, is Nigeria-based energy and infrastructure advisory firm with in-depth knowledge and understanding of the regional energy, infrastructure and capital markets provided specialised financial services addressing Wings’ commercial due diligence, project valuation and structuring, and capital raising.
 
Commenting on the project at the ground breaking ceremony, the  Chief Group Executive of Oando, Wale Tinubu, said: “Seven years ago we envisioned the Wings project as a further testament to our aspiration to conduct our corporate operations from an ultramodern edifice which exemplifies the desire, dedication, and intrinsically the overall growth of our people and our company.
 
“We acquired the land to start that journey, and today we stand here to begin a transition that will provide a home away from home for our employees, provide much-needed job opportunities for the populace of Lagos state, while also beautifying the Lagos waterfront and skyline. I also applaud all the partners involved for their patience and belief in the viability of the Wings project.”
He said working with RMB, Stanbic IBTC and Argentil Capital Partners on the project, showcases  the value of partnerships of the integrated energy firm as  it continues to execute key projects across the country.
 
He stated that the resounding success of these relationships has brought to fruition the realisation of an idea that was conceived over half a decade ago.
 
One of the towers will be  occupied entirely by Oando personnel, while the other tower will be partly utilised by Oando’s joint development partners in the project-Stanbic and RMB. Each tower will comprise of 13 leasable floors, including 2 penthouse floors, and have approximately 900sqm in leasable space available per office floor.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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Penchant for Expatriates May Stunt Aviation Growth

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The Nigerian aviation sector may witness weak growth as indigenous airlines spend substantial portion of their resources on expatriate pilots and engineers. This is more so because apart from devoting huge resources on expatriates, who represent a large percentage of their technical workforce, there is no programme to train Nigerians that will take over from them.
 
Presently expatriates pilots and engineers earn three times what their local counterparts earn and they are given more holidays and better welfare packages, which eat into the coffers of the airlines, known to make marginal profits at the best of times.
Ironically, recent developments have exposed the fact that many of these expatriates do not have the requisite experience they claim to have and many of them come to Nigeria to learn on the job, as highly skilled personnel rarely leave their country of origin to work in third world countries like Nigeria.
 
President of the National Association of Aircraft Pilot and Engineers (NAAPE), Isaac Balami, said Nigeria would build technical capacity if there is planned programme towards training of indigenous manpower by putting a Nigerian besides every expatriate that has come to work in Nigeria and also limited the period every expatriate would stay in the country as it is done in other parts of the world.
“This policy will help build technical capacity which is also key. It is also cheaper when we have local Nigerians doing these jobs competently because it will eliminate capital flight, where we currently pay a foreigner €10,000 to €15,000 per month;  he works only six weeks on and another six weeks off, whether he is on or off, you are paying him full pay and whenever he is in the country, you lodge him in Sheraton, you pay his flight tickets every six weeks. Some of them come from Canada and the Philippines, imagine a ticket of over a million naira every six weeks for someone. These are the things killing the airlines.”
 
Balami also noted that the more qualified personnel do not leave their countries to come and work in Nigeria or elsewhere because such persons are highly valued and would be given every incentive to stay in the countries of origin, adding that Nigerians might be more qualified than many of these expatriates that come to work in the country.
 
“You and I know that if you are the best aircraft engineer in Europe and America, they will never allow you to come here. Africa has been a training ground for some of these expatriate from records I have at my disposal. Nigeria is the only country whereby a foreigner is sent here who knows nothing and they use our aircraft as a training piece of machine and when they become perfect on that aircraft after five years they return to Europe and work there. Out of 30 expatriate in this country I can beat my chest and tell you that we have only about two who are real expert in this industry; the rest we teach them the job here,” Balami lamented.
But he said that some companies like Bristow Helicopters, Arik and some state governments have intensified training of pilots and engineers and in the foreseeable future the country may break the dominance of expatriates in the aviation sector.
 
“The vacuum was created when Nigeria Airways Limited (NAL) was liquidated; when the Nigeria College of Aviation Technology, Zaria went down, but today Aero, Arik, Akwa Ibom state have embarked on training of pilots and engineers. Currently NCAA is training over 100 engineers this year. Kano state government has sent 100 pilot trainees to Jordan and Mish Aviation in Ghana and NCAT has graduated a high number of pilots and engineers, but it will take time for us to bridge the gap,” Balami said.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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FG Approves Special Economic Summit to Unbundle Abuja

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The federal government has approved a special Abuja Economic Summit for unbundling the huge economic and investment potentials of the Federal Capital Territory (FCT).
 
The event will also serve as a forum for exploring alternative funding for FCT’s major infrastructure, transportation and tourism projects as well as facilities and social services. The summit, which promises to be a gathering of leading investors, captains of industry, capital market operators and finance experts, is expected to hold next year.
 
FCT Minister, Senator Bala Mohammed, who announced President Goodluck Jonathan’s approval of the Economic Summit during a special tour of major ongoing projects within the FCT undertaken by the Federal Capital Development Authority (FCDA), said the summit would open the window for accelerated private capital inflow into FCT with a view to ensuring efficient and sustainable service delivery.
 
The projects tour, which was specifically organized for participants of this year’s Capital Market Committee (CMC) retreat of the Securities and Exchange Commission (SEC) was designed to conclude the three-day retreat.
 
Mohammed stated that the summit would be used as a forum to attract development partners who would intervene to help the FCT Administration to complete some of its major portfolio projects whose completion timeline had become unrealistic due to funding challenges.
 
He listed one of such projects which are ripe for investors to take over as the Nigeria Cultural Centre and Millennium Tower Project, Central Area, Abuja. The N69.3 billion project, whose percentage completion of physical structures (excluding machinery and preliminary items) is about 34 per cent, requires about N31billion to be completed.
 
With October 2014 revised completion deadline, only a paltry N2.5 billion was appropriated for the vital national project in this year’s (2013) budget making it a potential candidate for private capital injection.
 
Mohammed also disclosed that the Airport Express Road (Umaru Musa Yar’Adua Way), Abuja, the Kubwa express road (Muritala Muhammed Way) and the Inner Southern Expressway in the capital city centre might be handed over to investors for tolling as a way of fast-tracking their completion.
 
He called on the Capital Market to help the FCT Administration get to the private sector up-takers who would help to unbundle the vast potentials of FCT and put it in pole position to compete with major global cities like Dubai and Singapore.
 
Speaking during the tour, the Director-General of SEC, Ms Arunma Otteh, said she was highly excited that FCT has many portfolio projects with high potential for self-sustenance and income generation. She said the commitment of President Jonathan to multi-sectoral development of FCT has begun to pay off as evidenced by several giant projects that are going on quietly in the Territory.
 
In her own remark, the Chairperson of the 2013 Capital Market Committee (CMC) Retreat, Abuja and CEO of UBA Trustees, Mrs. Oluwatoyin Sanni, said members of the Nigerian Capital Market community have now confirmed that a monumental project and infrastructure revolution was underway in Abuja which most Nigerians hardly know about.
 
Among projects inspected by the SEC and the CMC team were the construction of tanks 1 & 6 and associated trunk mains of the Abuja water supply scheme by Sarplast West Africa Limited, the Nigeria Cultural Centre and Millennium Tower Project by Salini Nigeria Limited, the construction of phases 3 & 4 Lower Usuma Dam Water Treatment plants project by Biwater Nigeria Limited.
 
Others are the Gurara Water Transfer to FCT Lot A Dam and Associated Works by Salini Nigeria Limited and the Extension of Inner Southern Expressway (ISEX) from the Outer Southern Expressway (OSEX) to Southern Parkway also by Salini Nigeria Limited.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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Customs Destroy N600m Seized Drugs in Katsina

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The Nigeria Customs Service (NCS) and NAFDAC, Kaduna/Katsina Area Command, have jointly destroyed seized drugs worth N600 million in Katsina.
 
Speaking at the destruction of the items, the Kaduna/Katsina Area Comptroller, Yerima Abubakar Gadam, condemned the activities of deviants who smuggle restricted drugs and other harmful substances into the state. He said transportation to other parts of the country have tended to turn the peaceful and progressive state into a depot for these dangerous drugs illegally.
 
Gadam identified the drugs being destroyed to include 3,426 cartons of assorted drugs like Tramadol, Miza grip, 8,307 packets of assorted drugs like Viagra, Sundrex and 10,332 sachets of assorted drugs like Viagra power, and animal drugs.
 
Others were 16,312 rolls of assorted drugs like Vika Plus, Rudrex, 170 bottles of ORT and animal injection, as well as 2,210 boxes of assorted bottles of human and animal injection respectively.
 
In his remarks, the Federal Operation Unit (FOU), Zone B Kaduna Comptroller, Ahmed Tayani Suleiman, noted that Customs split into various units before it was a successful operation.
 
Suleiman also pointed out that NCS made these seizures within two months where some of their men sustained various degrees of injury and even lost their lives in the course of operations. He said if these dangerous drugs being allowed to enter the society only God knows the outcome.
 
The federal operations Comptroller added that all the drugs being seized and destructed were pharmaceutical drugs, which were supposed to be used for medical aspects but unfortunately had been misused by the youths.
 
“There is agreement between Nigeria and other neighbouring countries on exporting drugs under certain procedures. Incidentally those countries violated the agreement, which resulted in what is happening now", he added.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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Muhammed: Why Nigerian Airlines Fail

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The high cost of procuring aircraft and  the  inability of  Nigerian operators to  lease aircraft  due to bad reputation of not paying for leased aircraft  have been identified   as some of the reasons  the country’s airlines fail.
The Managing Director, Discovery Airways (a new indigenous airline), Abdusallami Muhammed, who stated this,  explained that an upcoming airline in other parts of the world usually lease aircraft from international financiers and therefore does not spend huge resources on aircraft acquisition.
 
“It is very hard to operate an airline in this part of the world. If you are in Europe or you are in America and you want to set up an airline, there will be finance companies that will be willing to lease aeroplanes to you. Most of these airlines do not buy airplanes with cash. They lease them. Big aeroplane owners are leasing companies. But unfortunately in Nigeria because we have had over the years a bad reputation that we don’t pay our bills, you find out that these leasing companies are reluctant to lease aeroplanes to Nigerian operators. So Nigerian operators are forced to buy with cash and these aeroplanes are quite expensive,” he said.
According to him, it  is difficult for Nigerian airlines to make profit in their operations because of the high  interest paid on loans obtained to buy  or lease those aircraft.
 
“By the time you buy aeroplanes worth millions of dollars, you are talking of billions of naira and it will be very difficult if you now have to go to the financial market to borrow that huge sum; with high interest rate it will be very difficult to survive. That is why the environment is not conducive,” Mohammed said.
However, he said  Discovery Airways would not suffer from this problem because the airline had studied the market and known the factors that made indigenous carriers  to collapse, saying that Discovery Airways would steer away from the weaknesses noticed in the industry, operate safe, sustainable and provide affordable services.
Mohammed said the new airline would fill an existing niche in the market with on time take off, good fares and inimitable passenger satisfaction.
 
“The major reason we established this airline is to provide Nigerians, safe, sound and effective airline that actually make Nigerian to fly from point A to point B at the lowest cost. That is what we want to achieve. Discovery Airways is an airline that was set up about a year ago with the aim of offering Nigerian travelling public something that is missing in the airline service, which is very good customer service, apart from the fact that there is shortage of commercial aircraft in the country,” he said.
He added that the airline would start operations with the popular destinations: Abuja, Lagos, and Port Harcourt but would expand the routes structure as it brings in more aircraft.
“Today marks important day for us because the first of our aircraft just arrived from England. The second one will follow in the next two weeks and we are going to start with three aircraft. The third one will come in January. The one that just arrived is a Boeing B737-300,” he said.
 
According to him, the   major reason the airline was established is to provide price effective airline that can enable Nigerians to fly.
He also disclosed that Discovery Airways had already signed agreement with two major maintenance, repair and overhaul (MRO) organisations in England and France, noting that these organisations had been certified by the Nigerian Civil Aviation Authority (NCAA).
“We signed contracts with MROs in England and in France as well and I can tell you they are top notch MROs and they have been certified by NCAA. We have religiously gone through each process of the way that will lead to obtaining AOC (Air Operator Certificate). We want to give the best service to Nigerians although it is coming at a premium and we want to actualise the ideal situation the minister is trying to put in place. We have our marketing model which we are going to unveil gradually,” Mohammed said.
According to him, although it is hoped that the airline would begin service by the middle of this month, he admitted that it is subject to the decision of NCAA.
 
“The commencement of our operations is, however, subject to NCAA because we are still going through our certification to get our AOC. As you know, the AOC process is in five phases and we are now in the 4th phase and the 5th phase is just the issuance of the certificate. So now we are in the demonstration phase. The flight today (November 30, 2013) is part of that demonstration. Now we will be expected, for the next few days, to be flying all over the country, but we will not be carrying passengers,” he said.

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Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
ionyclaret@gmail.com
https://www.codewit.com
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Discovery Airways Begins Operations December

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In spite of the challenges besetting domestic air operations in Nigeria, new airlines are poised to join the market. The latest airline, Discovery Airways, which will begin operations middle of this month, said the huge potential in air transport sector attracted to the business.
 
The airline which delivered its first aircraft, a Boeing B373 last week said that it had studied the market and known the factors that made   to collapse. The airline said it would steer away from the weaknesses noticed, operate safe, sustainable and provide affordable services.
Managing Director of the airline, Abdusallami Muhammed, told newsmen during the delivery ceremony at the domestic terminal of the Lagos airport, (MMA2) that the new airline would fill an existing niche in the market with on time take off, good fares and inimitable passenger satisfaction.
 
“The major reason we established this airline is to provide Nigerians, safe, sound and effective airline that actually make Nigerian to fly from point A to point B at the lowest cost. That is what we want to achieve. Discovery Airways is an airline that was set up about a year ago with the aim of offering Nigerian travelling public something that is missing in the airline service, which is very good customer service, apart from the fact that there is shortage of commercial aircraft in the country,” he said.
He added that the airline will start operations with the popular destinations: Abuja, Lagos, and Port Harcourt but would expand the routes structure as it brings in more aircraft.
 
“Today marks important day for us because the first of our aircraft just arrived from England. The second one will follow in the next two weeks and we are going to start with three aircraft. The third one will come in January. The one that just arrived is a Boeing B737-300,” he said.
According to him, the   major reason the airline was established is to provide price effective airline that can enable Nigerians to fly.
He also disclosed that Discovery Airways had already signed agreement with two major maintenance, repair and overhaul (MRO) organisations in England and France, noting that these organisations have been certified by the Nigerian Civil Aviation Authority (NCAA).
 
“We signed contracts with MROs in England and in France as well and I can tell you they are top notch MROs and they have been certified by NCAA. We have religiously gone through each process of the way that will lead to obtaining AOC (Air Operator Certificate). We want to give the best service to Nigerians although it is coming at a premium and we want to actualise the ideal situation the Minister is trying to put in place. We have our marketing model which we are going to unveil gradually,” Mohammed said.
According to him, although it is hoped that the airline would begin service by the middle of this month, he admitted that it is subject to the decision of NCAA.
 
“The commencement of our operations is, however, subject to NCAA because we are still going through our certification to get our AOC. As you know, the AOC process is in five phases and we are now in the 4th phase and the 5th phase is just the issuance of the certificate. So now we are in the demonstration phase. The flight today (November 30, 2013) is part of that demonstration. Now we will be expected, for the next few days, to be flying all over the country, but we will not be carrying passengers,” he said.

About Post Author

Anthony-Claret Ifeanyi Onwutalobi

Anthony-Claret is a software Engineer, entrepreneur and the founder of Codewit INC. Mr. Claret publishes and manages the content on Codewit Word News website and associated websites. He's a writer, IT Expert, great administrator, technology enthusiast, social media lover and all around digital guy.
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