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Business & Finance
Thursday, January 23, 2014
National Mirror www.nationalmirroronline.net
‘Inclement environment reduces lifespan of local carriers’ OLUSEGUN KOIKI
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he uncomfortable working environment has been adduced the reasons why indigenous airlines in Nigeria don’t last long unlike some of their counterparts elsewhere. In a bid to ensure the carriers live their lifespan, the Federal Government has been advised to work towards the stability of naira, provide aviation fuel to operators at affordable price and improve on the security network in the country.
The Managing Director, MedView Airline, Alhaji Muneer Bankole stated this yesterday during an interview with our correspondent in his office in Lagos. According to Bankole, the fortune of naira has been dwindling in the past few years, a situation, which he said enormously affects the operators, who in most times do their transaction in dollars and other major foreign currencies. He explained further that 40 per cent of the earnings are spent on aviation fuel, but decried that despite their complaints over the years, the government has not
been able to improve the situation. He said, “Personally, I want to say it here that, we have no stable component for naira when compared to dollars and other major currencies of the world. In other countries that I know, the rate of exchange remains stable, contrary to what we have here. It’s a very sad situation, but unfortunately, we can’t complain. “Aviation fuel too is on the high side and it takes away 40 per cent of your total cost. We keep shouting and talking, but nobody is ready to listen to us, nobody has addressed the issue. This is a country blessed
with abundant resources. “Thirdly, the security of the environment does not help the business to grow. There are some places you can’t fly into in Nigeria today, which is not supposed to be so within the same country. This reduces our operational challenges. Aircraft will sit down on the ground rather than be in the air; they are meant to fly and not be on the ground.” On the infrastructure at the airports all over the country, Bankole insisted that these have improved over the years and lauded the Minister of Aviation, Princess Stella Oduah for initiating the remodelling exercise, which he said had uplifted the Nigerian airport environment. He noted that the expansion of the Murtala Mohammed International Airport, MMIA, Lagos terminal has eliminated the bottlenecks hitherto experienced by air passengers, adding that as the gateway to any country, the
airport environments should be comfortable to users. When asked about the commencement of regional and international operations by Med-View, he said that the routes would commence very soon, maintaining that Accra, Ghana would be the first to come on stream while Jeddah and Dubai would follow in quick succession. On the planned acquisition of 30 aircraft for local operators by the Ministry of Aviation, he said that the operators were contacted by the government and hoped that it would be implemented soon. “I cannot speak for the ministry on this arrangement, but I can speak to you as an airline operator. I’m very much aware that there was a window by the government to assist the airlines in the area of leasing and that process is still on. I believe that the whole idea is to reduce cost and bring in the right equipment, newer aircraft and enhancement of safety issues.”
CBN, E-PPAN to train government executives in six states KUNLE A ZEEZ L-R: Executive Director, Lagos, Sterling Bank Plc, Puri Davendra; Business Development Associate, 234give Limited, Rita Igbhofose; CEO/MD, 234give Limited, Sola Fatoba and Executive Director, South, Sterling Bank, Mr. Lanre Adesanya, at the presentation of cheques to charities who benefited from the Sterling Bank’s Raise a child project, in Lagos...yesterday.
PFAs grappling with operational, management risk, says PenCom MESHACK IDEHEN
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he National Pension Commission, PenCom, has said some Pension Fund Administrators, PFAs, are facing operational and management risks associated with receipt of contributions without appropriate schedule. PenCom said also that litigations and non-funding of Retirement Savings Accounts, RSAs, by some employers in the country are some of the challenges the PFAs are grappling with, and that the report is based on the risk management reports submitted by the pension operators themselves. In its latest report made available to journalists on Wednesday, the commission, which however did not disclose the names of the affected operators, said those challenges will soon be surmounted. According to PenCom, the review of the risk management reports submitted by operators revealed noncompliance by some employers as one of the major challenge. The commission stated nonetheless that it has s also ad-
vised the concerned operators to strengthen their mitigating measures in order to avert the identified risk. This development comes in spite of the fact that Section 66 of the Pension Reform Act 2004 requires every Pension Fund Administrator to establish risk management committee, with the current situation indicating that the risk management committees of the affected PFAs have not been living up to their responsibilities. Section 66 of the Pension Reform Act 2004, requires every PFA
to establish the risk management committee for the purpose of determining the risk profile of the investment under its management with a view towards providing advice on the management of associated risks. Consequently, PenCom said all licensed pension fund operators are mandated to develop, implement and maintain a sound and prudent risk management framework that comprises policies, procedures, and processes, appropriate to the nature, scale and complexity of their operations.
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o drive awareness and knowledge of cashless economy policy in the country, the Electronic Payment Providers Association of Nigeria, E-PPAN, in partnership with the Central Bank of Nigeria and the six states of the federation where the Cashless Nigeria policy is being implemented, is set to build capacity and transfer skills to local government area executives and desk officers. This would be made possible, as the stakeholders have concluded arrangement to organise a three-day programme with the theme: “Upscaling the Use of EPayment Channels in Local Government to Increase IGR And Enhance Citizen Service Delivery.” Manager, Media and Strategy Development, E-PPAN, Ms Ntia Sylvia, in a statement made available to National Mirror, said the programme was designed to
bring the benefits of electronic payments to local governments in the country in a one-day executive session with the management executives of local government. This would be supported a two-day intensive workshop session with desk officers in the finance/accounts departments of all the local government. According to her, the programme became necessary as observed by the association during its recent visit to the six states for the sensitisation of the grassroots on the new cash policy. “E-PPAN discovered that there is an urgent need for the local government to understand the benefits of electronic payments knowing that government agencies at all levels are heavily engaged in accepting payments – whether for recurring services such as public utilities and water, for occasionally issued permits, licenses, quarterly or annual tax payments and so o,” she said.
Fadama III empowers 12,042 farmers in Plateau –Coordinator
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adama III, a World Bankassisted programme, has empowered 12,042 crop, livestock and fish farmers in Plateau, state Project Coordinator, Mr. Gideon Dandam, said in Jos yesterday. Dandam told the News Agency of Nigeria, NAN, that the empowerment was routed through the Fadama User Groups, FUGs, in the state. He said that the beneficiaries comprised 6,323 men and 5,719
women. According to Dandam, crop and vegetables farmers whom the programme empowered had so far cultivated a total of 673 hectares. He explained that 774 maize farmers in 49 FUGs cultivated a total of 128 hectares, while 753 potato/maize inter-crops farmers in 47 FUGs cultivated 110 Hectares. According to him, 122 potato farmers in eight FUGs cultivated 16 hectares with the support of the project.
“We also have 612 yam farmers in 46 FUGs that cultivated 56 hectares of cassava, while 119 farmers in five FUGs cultivated the product on 44 hectares. “Also, 1,017 vegetable farmers in 107 FUGs cultivated 22 hectares, while farmers that cultivated rice and inter-cropped same with either pepper or maize, were 250 in 16 FUGs, cultivating 42 hectares.,’’ He further said that 212 farmers producing millet, beans, groundnuts and cotton, grouped
into 10 FUGs, cultivated a total of 36 hectares. On livestock production, Dandam said that 2,560 poultry farmers in 145 FUGs produced 93,830 birds, while 847 goat and sheep farmers in 49 FUGs had 665 goats/ sheep. He said that 4,310 farmers grouped into 241 FUGs, fattened 1,052 cattle with the assistance of the project, while 152 farmers, in eight FUGs, were empowered to acquire 353 work bulls.