Connect with us


NGX sanctions Julius Berger over ‘inappropriate insider dealing’



NGX sanctions Julius Berger over ‘inappropriate insider dealing’
Spread the love

Authorities at the Nigerian Exchange (NGX) have sanctioned Julius Berger Nigeria (JBN) Plc for engaging in inappropriate insider dealing in shares.
A document obtained by The Nation showed that JBN, Nigeria’s leading construction company, was sanctioned for “insider dealing during closed period”. Incorporated in 1970, Julius Berger Nigeria became a publicly quoted company in 1991 and has more than 10,000 shareholders.

NGX Regulatory Company (NGX RegCo), the self regulatory organisation (SRO) that regulates activities at the NGX, stated that JBN breached certain provisions of the listing rules and was thus sanctioned accordingly.

According to NGX RegCo, JBN violated provisions on “closed period”, in breach of the construction company’s commitment to adhere to listing rules and standards.

The NGX had tightened its rules and regulations to checkmate boardroom intrigues and block information arbitrage that tend to confer advantages on companies’ directors. The amendments expanded the scope and authority of corporate financial reporting while eliminating gaps that allowed companies to sidetrack relevant rules in stage-managing corporate compliance.

The enhanced framework provided clarity and greater disclosures on directors’ trading in shares, corporate liability for accuracy and compliance of financial statement, dissuade bogus dividend payment and other sundry boardroom’s maneuverings that tend to favour insiders.

The amendments came on the heels of noticeable increase in violations of rules on ‘closed period’, a period when directors are banned from trading in the shares of their companies.

Rule 17.17 of the NGX disallows insiders and their connected persons from trading in the shares or bonds of their companies during the ‘closed period’ or any period during which trading is restricted. This period is mostly at a period of sensitive material information, like prior knowledge of financials, dividends or major corporate changes, which places directors and other insiders at advantage above other general and retail investors.

A review of the disclosure violations at the stock market had shown that all violations in 2021 were related to violation of Rule 17.17 on ‘closed period’.

Under the amendments, in addition to the provisions of relevant accounting standards, laws, rules and requirements regarding preparation of financial statements, companies are now required to include several specific declarations on securities transactions by directors, changes in shareholding structure, self-assessment on compliance with corporate governance standards and internal code for directors on securities transactions among others.

According to the rules, in relation to securities transactions by directors, a company shall disclose in its quarterly financial statements, full year audited financial statements, and in corporate governance report contained in its annual report whether the company has adopted a code of conduct regarding securities transactions by its directors on terms no less exacting than the required standard set out by the market.

The company is also required to disclose, having made specific enquiry of all directors, whether its directors have complied with, or whether there has been any non-compliance with, the required standard set out in the Exchange’s rules and in code of conduct regarding securities transactions by directors.


Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


Manufacturers wail as unsold goods pile up in warehouses



767 manufacturing companies
Spread the love

Manufacturers of fast-moving consumer goods, FMCG are in dire agony over the continued rise in unsold goods in their warehouses, a development which would lead to a further significant decline in output level in the sector.

The continued rise in unsold goods is caused by two factors namely the rising cost of living and the declining purchasing power of the citizens.

Financial Vanguard’s findings show that due to the downturn in the consumers’ disposable income, the stock of unsold goods for manufacturers in the fast-moving consumer good, FMCG, sector of the economy rose Year-on-Year (YoY) by 27 per cent during the financial year ended December 31, 2023. The sector operators also indicated that the situation is worsening in 2024 as they expect to report over a 30 per cent rise in unsold goods in the first quarter of the year, Q1’24.

Consequently, they hinted that the output levels have been going down steadily since mid-last year, when the Central Bank of Nigeria (CBN), the report showed that capacity utilisation in the food and beverages sector fell to 49 per cent from 61 per cent in the corresponding period in 2022, indicating a 20 percentage point decline.

Nigerians have been battling with inflationary pressures with its curtailing effect on consumers’ purchasing power in the last eighteen months.

The headline inflation rate has been on a constant increase, rising to 28.82 percent in December 2023 from 21.34 per cent in December 2022, triggered by various factors including high energy cost, and insecurity, especially in the farming communities in Nigeria, among others.

Within the same period also, food inflation surged to 33.93 percent from 23.75 percent a year ago.

The trend has continued unabated in 2024 with headline and food inflation moving further up to 33.69 per cent and 40.53 percent in April from 29.90 percent and 35.41 percent at the beginning of the year respectively.

A combination of the massive increase in inflation coupled with naira devaluation had resulted in price mark up by manufacturers to cover high input costs.

But this cost coverage measure has also alienated many of their consumers, thereby slowing down sales.

Financial Vanguard’s findings from the operations of 15 major FMCGs clearly show a burdensome price index escalating the stock of unsold goods amounting to N104.45 billion despite the huge cut in production quantity.

The companies are BUA Foods Plc, Dangote Sugar Refinery Plc, Nestle Nigeria Plc, Presco Plc, Cadbury Nigeria Plc, Okomu Oil Nigeria Plc, NASCON Allied Industries Plc, May & Baker Nigeria Plc, Fidson Healthcare Plc, and Neimeth Pharmaceuticals Plc.

Others are Guinness Nigeria Plc, Champion Breweries Plc, Flour Mills of Nigeria Plc, Nigerian Breweries Plc and Honeywell Flour Mills Plc.

Companies’ records

The breakdown shows that while a number of the companies recorded a reduction in the level of their stock of unsold goods, palm oil producers – Okomu Oil Palm Plc and Presco – took the biggest hit. Industry observers believe the oil palm industry should not be recording such poor performance given how essential the product is to the average Nigerian family.

Presco, the leading palm oil producer, recorded the highest stockpile of unsold goods as the inventory of finished unsold goods rose by 249.4 per cent to N1.45 billion, followed by May & Baker Plc and Okomu Oil Palm, the second largest palm oil producer, with 160.2 per cent and 124 percent increase in their inventory of unsold goods respectively.

Dangote Sugar Refinery Plc, Flour Mills of Nigeria Plc and Cadbury Nigeria Plc also ranked among the worst with record increases of 92.9 percent to N9.76 billion, 74.1 percent to N30.75 billion and 71.5 per cent to N3.55 billion in their stock of unsold goods respectively.

Strangely, all brewers in the report recorded reduction in their unsold goods.

Reacting, Director General of the Nigerian Association of Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA), Sola Obadimu, said the findings are not surprising, adding that until economic indices are stable, the situation may persist.

His words: “As I always say, we’re in a ‘stagflation’ situation, meaning – persistent rising inflation and high unemployment rates in a static wage situation. The wages are not just static, they’re declining in value in real terms as a result of inflation. Consumers (and industries as well) are also vulnerable/defenceless victims of rising energy costs, unstable forex rates and debilitating infrastructure generally, etc. So, it’s no surprise that inventories are growing.

“We’re all aware of the fact that some major multinationals declared losses for 2023 as a result of the unfavourable economic climate and some chose to leave while others are contemplating. It’s easier for local industries and businesses whose owners can quickly take decisions in the face of constantly changing critical economic indices. These multinationals sometimes have to seek aporovals for some major situations from their global Head Offices which may take a while to come due to lack of adequate understanding of the local environment.

“So, unless we get some sort of stability in critical economic indices and consumer purchasing power increases in value terms, the story may not agreeably be too different in 2024.”

Consumers preference has shifted — Muda Yusuf

Muda Yusuf, Director General, Center for the Promotion of Public Enterprise (CCPE), who blamed the mounting inventory of unsold goods on depreciation in the value of the naira, and high energy cost among others, said that consumers are now reviewing their preferences and are shifting to cheaper substitutes where available.

He said there’s a need to bring down the exchange rate and energy cost to effect a reduction in companies’ cost of production.

He said: “The high level of inventory of finished goods, particularly the unsold inventory, are the consequences of high production cost and the high operating cost that the manufacturers in the FMCG sector have been grappling with over the last one to two years.

“There have been challenges of escalation of cost arising from exchange rate depreciation, high energy cost, high cost of logistics and challenges around the high cost of funds.

“These are the key issues and, naturally, when the production and operating costs increase, the natural thing is for the increase in cost to be passed on to the consumers in the form of high prices.

“So, what we are seeing is that the prices of some of these products have gone up significantly and some by as high as 50% and in some cases, even 100% in the last year.

“And in an environment where the purchasing power is also weak, where the level of poverty is also high, naturally, these inventories will be very slow in terms of outflow from the warehouses because of the weak purchasing power of the consumers.

“There’s also an element of consumer resistance due to this high cost of production. There is also an element of substitution. For some of those products that have substitutes, consumers may decide to go for cheaper substitutes because of the high prices.

“So, basically, these are the factors that are responsible for the high level of inventory of finished goods that we have seen in recent times.”

Speaking on the way out, Yusuf said there’s a need to put strategies in place to ensure a reduction in operating cost, a reduction in logistics costs and a strengthening of the purchasing power of the citizens.

Need to stabilize FX market

He expressed the need to stabilize and boost supply in the foreign exchange (FX) market in order to moderate the depreciation of the currency.

According to him, this will result in a reduction in operating and production cost.

“Once the currency strengthens, the cost of production will, naturally, be less; the cost of logistics, if the energy crisis goes down, will also begin to decelerate.

“Then, of course, there’s also the element of the cost of clearance of cargo.

“These cargoes could be raw materials, it could be intermediate products, and it could be machinery that is used by any of these manufacturers.

“The current methodology of determining the exchange rate for the computation of import duty has made the cost of cargo clearance very prohibitive.

“So, if the government through the fiscal and monetary authorities could do an adjustment to this by fixing the exchange rate for the computation of import duty to between N800 – N1,000/$ and this is fixed for may be three months, that will also help to bring down some of this cost and make the products a lot more affordable because the key issue here is the affordability of these products.

The more affordable they are, the lesser the level of unsold goods,” Yusuf added.

According to him, “The danger in the level of this unsold inventory is that some of these products have expiry dates, which is another risk to these businesses.

It is a good thing that the government is talking about minimum wage. If the workers are empowered, we are likely to see an improvement in demand for some of these products.

“So, there’s a supply side issue to bring down the costs of production, operation and logistics and cost of funds.

“There’s also the demand side issue of empowering the consumer to have the purchasing power to buy these products.”

Rise in unsold goods weakens profitability — FSL Securities

Commenting also, Victor Chiazor, Head, Research at FSL Securities, said: “The 27% rise in inventory for players in the fast-moving consumer goods sector could be attributed to two factors.

“The first could be that the rise is a result of the company’s inability to drive sales due to the rising cost of goods which may have slowed down the volume of goods sold during the period, leading to a rise in inventory.

“Also the second reason for the increase in inventory could be deliberate and the company may decide to increase its inventory position to enable it to plan around the significant volatility in the cost of goods which has remained unpredictable in recent times.

“This helps the company manage the risk around a possible increase in production cost.

“However, whatever the case may be, it has a terrible effect on the course of operation for the business as a slowdown in sales will weaken profitability and a deliberate strategy to increase inventory also ties down capital which could have been raised via borrowing at a high-interest rate given the interest rate environment.

“The government will have to deal with issues around FX volatility, rising energy cost, rising cost of borrowing, bad infrastructure amongst other issues, all of which increase input cost for the manufacturer.”

Source: Vanguard

Continue Reading

Oil & Gas

Dangote petrol supply: FG may slash N6tn fuel import



Dangote Petroleum Refinery has announced a further reduction of the price of diesel from 1200 to 1,000 naira per litre.
Spread the love

The Federal Government may cut its approximately N6.2tn yearly fuel import bill if the Dangote Petroleum Refinery begins the sale of premium motor spirit as promised by the Chairman of the Dangote Group, Aliko Dangote.

Dangote, while speaking at the Africa CEO Forum Annual Summit in Kigali, Rwanda on Friday, assured Nigerians that following the laid-down plans of the Dangote refinery, Nigeria would no longer need to import petrol starting next month.

The country’s petrol import was reduced to an average of one billion litres monthly after President Bola Tinubu removed fuel subsidy on May 29 last year, according to a report by the National Bureau of Statistics.

According to Dangote, the $20bn refinery can meet West Africa’s petrol and diesel needs, as well as the continent’s aviation fuel demand.

He said, “Right now, Nigeria has no cause to import anything apart from gasoline and by sometime in June, within the next four or five weeks, Nigeria shouldn’t import anything like gasoline; not one drop of a litre.

“We have enough gasoline to give to at least the entire West Africa, diesel to give to West Africa and Central Africa. We have enough aviation fuel to give to the entire continent and also export some to Brazil and Mexico.

“We have started producing jet fuel, we are producing diesel, and by next month, we’ll be producing gasoline. What that will do is it will be able to take most African crudes.”
The assurance by Dangote, if realised, would reduce the country’s approximately N6.2tn annual spending on PMS import.

With an average pump price of N670/litre, marketers put the average landing cost of petrol currently at N520/litre, considering the price of the Nigerian National Petroleum Company Limited, which is the only importer of the product.

Operators also put the average difference between the landing cost and pump price of PMS at N150/litre.
With an average monthly consumption of 1 billion litres, Nigeria currently spends approximately N520bn on the importation of PMS every month. This is N6.2tn annually.

Going by the planned June supply of PMS by Dangote, the country is expected to save a substantial amount from the elimination of shipping and other charges attached to importation, according to operators and industry experts.

The difference between the landing cost and the pump price of petrol is N150 per litre, according to operators.

Landing cost is the total cost of delivering the shipment to Nigeria from a foreign country, including all expenses incurred from the point of production to the point of delivery.
Refined petroleum products often arrive in the country via the Atlas Cove, from where it is transferred to jetties via daughter vessels. From jetties, the fuel is moved to various tanks.

Marketers say this difference of N150 between the landing cost and the pump price has to do with the cost of moving PMS from the port to various filling stations across the country. This also includes marine costs, and the Nigerian Ports Authority charges, among others.

The PMS landing cost is different from that of diesel, aviation fuel, and other petroleum products.

In foreign currency, the country spends an average of $4.16bn annually if converted the N6.2tn at the rate of N1,520 per dollar. However, there are arguments that the NNPCL spends more than this on PMS importation.

The actualisation of Dangote’s promise is expected to strengthen the naira.
According to industry reports, Nigeria spends at least $10bn annually on the import of PMS, aviation fuel, diesel and other petroleum products.

Analysts believe that not less than one-third of the country’s annual foreign exchange expenditure goes into fuel imports.

Importation stoppage
A reliable source at the Central Bank of Nigeria said that the anticipated commencement of fuel supply by the Dangote refinery in June would herald a positive shift in the nation’s economy.
According to the source, the move to halt fuel imports will lead to a substantial reduction in the demand for foreign exchange, thereby strengthening Nigeria’s economic position.

The source further noted that, with the demands on forex reducing, the naira would regain strength.”As the dollar demand reduces, the naira will rebound and that is good for the economy,” the CBN source said.

Soneye said the NNPCL is no longer a corporation and could not comment on Dangote refinery’s impact.
The Director of Press and Public Relations, Ministry of Finance, Mr. Mohammed Manga, could not be reached for comments on Sunday as calls and messages sent to him went unanswered.
Also, the Director of Corporate Communications, Central Bank of Nigeria, Hakama Sidi Ali, did not respond to calls to her phone. She had yet to respond to a message sent to her line.
But the Director-General of the Centre for the Promotion of Public Enterprise, Dr Muda Yusuf, said the commencement of refining of petrol by the Dangote refinery would be a game changer for the Nigerian economy, especially from the perspective of the effect on the foreign exchange market and domestic energy cost.
Yusuf noted that, currently about 30 per cent of Nigeria’s import bill is on petroleum products.
“This has been estimated at between $10bn and $15bn annually over the decade. This would amount to a substantial easing of demand pressure on the foreign exchange market,” he stated.
Yusuf added further, “Already we have seen the impact of the domestic refining on diesel and aviation fuel importation. Even the prices have dropped. I therefore expect to see a major impact on the exchange rate.
“However, this positive outlook would depend on how much of the feedstock of crude can be sourced locally by the refinery. If the refinery has to resort to crude oil importation, the optimism about the foreign exchange impact may have to be moderated. Because that would imply some significant forex outflows for crude importation.”
He added that Nigeria is likely to see less importation of petrochemical products and other associated by-products from the refining process.
During an energy conference in Abuja recently, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, opined that Nigeria does not need to import fuel, expressing concerns that the bulk of the country’s foreign exchange goes into fuel importation.
“We must find a solution to our forex problem. Nigeria does not need to import fuel. We should free our scarce forex for other sectors of the economy. I am aware that the bulk of our forex goes to the importation of refined oil products.” Lokpbiri stated, expressing optimism that home-based refineries would put an end to fuel importation.

Marketers plan meeting
Meanwhile, fuel marketers said plans had been concluded to meet Dangote for discussions on possible price cuts as his refinery begins the production of PMS next month.

The marketers, under the aegis of the Independent Petroleum Marketers Association of Nigeria, told The PUNCH on Sunday they would meet with Dangote to negotiate a discount through bulk purchases.
Dangote’s 650,000 barrels per day refinery has been trying to secure crude supplies from the United States following the inability of Nigeria to ramp up production.
The refinery, which is the largest in Africa and Europe when it reaches full capacity, has since commenced the sale of diesel and aviation, but its petrol is yet to hit the market.
In April, Dangote crashed the price of diesel from around N1,500 to N1,000 per litre.
But Nigerians are currently eagerly waiting for petrol, which is the major fuel used by transporters, small-scale businesses and individuals for alternative power generation.
The promise of Dangote to end fuel import may be a relief to marketers and Nigerians, who are yet to fully recover from the recent fuel scarcity that nearly brought the economy to a halt in Lagos, Abuja and other parts of the nation.
Speaking in an interview with our correspondent, the National Vice President of the IPMAN, Hammed Fashola, disclosed that the marketers had requested a meeting with the Dangote Group chairman.
According to Fashola, there will be a follow-up to a letter written to Dangote earlier to fast-track a meeting and reach an agreement before the commencement of the sale of PMS.
Fashola had earlier called on the company to consider working directly with the association instead of individuals.
He noted that IPMAN should be a beautiful bride before Dangote for being in control of over 80 per cent of the filling stations in Nigeria.
The IPMAN leader said, “We have our letter with them, we are expecting their response, and we will surely do a follow-up. The letter was sent about a month ago and we are going to follow up. We are just like a ready-made market for Dangote. It is an advantage for him to have us in his programme. I believe that he would like to have us.
He added that the association would request a discount during the meeting with Dangote.“You know when you come together as a group, you have that negotiating power on your strength. There is no way we will not negotiate for a discount. That is why we don’t encourage individual company participation,” he stated.

Source: ThePunch

Continue Reading


MMA2 Training Academy: Elevating learning standards in aviation security



Spread the love

Over 3,000 individuals graduate from MMA2 Training Academy

The Murtala Muhammed Airport Terminal 2 Training Academy, since inception, MMA2 Training Academy has trained over 3,000 individuals, with a significant number benefiting from instruction by certified and authorized trainers affiliated with the academy, while others have been trained by external authorized trainers.

MMA2 proudly announces its establishment as a premier training institution, strategically located on the third floor of the domestic terminal 2, offering cutting-edge facilities and accredited courses in aviation security.

The Head Creative Services Department, Bi-Courtney Aviation Services Limited, Korede Ogunseinde, said, “The industry is a regulated field, combined with the strict regulatory requirements, necessitates standardized training throughout the sector. We have successfully created an avenue for all professionals to acquire more knowledge and skills through accredited training and successfully trained over 3,000 persons since inception .”

Established in July 2019, the academy offers a comprehensive range of Aviation Security Courses, including but not limited to: ASTP 123 (BASIC), Aviation Security Awareness Training, Xray Interpretation and Screening.

Head of Corporate Communications, BASL, Ajoke Yinka-Olawuyi said, “Cultivating a culture of security consciousness is paramount in our industry, as such, all concessionaires are required to undergo aviation security awareness training. This initiative not only fortifies our terminal’s security protocols but also empowers participants with invaluable knowledge, ensuring a safer and more resilient operational environment. Together, we stand to gain enhanced vigilance and preparedness, safeguarding both our assets and the traveling public.”

Notably, MMA2 Training Academy has attained accreditation and approval from the Nigerian Civil Aviation Authority (NCAA Avsec Department) as a Certified Aviation Security Training Provider, underscoring its commitment to meeting stringent regulatory standards.

The head of Aviation Security at MMA2, Monica Oguta, is quotd as saying, “I commend the MMA2 Training ’s noteworthy impact in advancing aviation security training. Since opening in July 2019, the academy has skillfully trained over 3,000 individuals, underscoring our commitment to high learning standards within the industry.

“Located strategically within the domestic Terminal 2, the academy boasts cutting-edge facilities, offering a wide array of aviation security courses. The recognition by the Nigerian Civil Aviation Authority as a Certified Aviation Security Training Provider validates our dedication to maintaining strict regulatory standards and ensuring our trainees achieve both professional growth and global recognition.

“Looking ahead, the MMA2 Training Academy will continue to lead in shaping a secure and competent aviation security workforce.”

Continue Reading


NAHCO chairman, Fadeni, donates library building to Joseph Ayo Babalola University



The Chairman, Board of Directors of Nigerian Aviation Handling Company Plc, Dr. Seinde Oladapo Fadeni, has donated a multi-million naira
Spread the love

…… This Magnificent Edifice Stands out on Campus, says VC

The Chairman, Board of Directors of Nigerian Aviation Handling Company Plc, Dr. Seinde Oladapo Fadeni, has donated a multi-million naira library block to the Joseph Ayo Babalola University, Ikeji – Arakeji, Osun State.
The three-storey structure, the biggest on campus, will cater for the library needs of all departments in the school.

Speaking at the hand-over of keys of the Library to the President, CAC Nigeria & Overseas, Pastor Samuel Oladele, during the weekend, Dr. Fadeni said it is important that students be assisted to learn especially with the high level of distractions in the modern world.

He stated, “The students don’t want to read anymore; and you can’t really blame them. In someone’s phone alone, you can find about ten social media apps. The world is becoming something else. But those who are ready to read, who are ready to study and to focus, we should assist them in achieving what they want to achieve.”
The NAHCO Chairman further promised to make the library conducive and equipped as a modern learning facility for all cadres of students from undergraduate to doctorate levels.

Fadeni assured the CAC hierarchy including the President, Oladele; Pastor E O Adejobi, the General Superintendent and Prophet Hezekiah Oladeji, the General Evangelist, all present at the occasion, that he would still do more than just donate the building.

He declared: “The physical body is there. I have given you my word; by the grace of God, whatever is supposed to be in a modern library, the computers, the shelves, and other things would be provided.”

The Vice Chancellor of the University, Prof Olasebikan Alade Fakolujo, extolled the virtues of the NAHCO Chairman pointing out that such acts of kindness and generosity that Dr. Fadeni exhibited exemplify his commitment to education and societal progress.

The VC said, “Today, we have this magnificent edifice, which stands out of all the structures on campus and compares favourably with some of the best library building in the first – generation universities in Nigeria, as fulfilment of the promise made by the donor.

The Dr Seinde Oladapo Fadeni Library is a multi-million naira three-storey building which at this particular time is praiseworthy. The gesture is dear to us as a university community.”

Fakolujo pointed out that there was no iota of doubt that one of the critical challenges facing Nigeria today is the lack of modern library facilities that support development and strengthen the country’s university education system. He noted that by investing in a library for Joseph Ayo Babalola University, Dr. Fadeni is indirectly also contributing to the strengthening of not only the country’s university system, but also the very bedrock of nation building.

Dr Fadeni was accompanied to the event by his wife, Mrs. Ebundola Fadeni, his sister, Mrs. Funmilayo Olowogunle and Director, International Business & Corporate Services, NAHCO Plc, Dr. Sola Obabori.

The full array of the leadership of Christ Apostolic Church, owner of JABU present at the occasion, in addition to the President, the General Superintendent and the General Secretary, includes the Pro-Chancellor, Prof. Joash Amupitan.

Others are the General Secretary, Pastor EA Mapur; the Regional Superintendent, Pastor GO Obiwale and the University’s Registrar, Mr. Dapo Ajayi.

Continue Reading


FG urges helicopter companies to comply with landing levy



Spread the love

The Federal Government has urged helicopter companies operating into aerodrome, helipads and other platforms to comply with the payment of landing levy to the concessionaire mandated to carry out the assignment because it is in line with international best practices.

Spokesman of Ministry of Aviation and Aerospace Development, in charge of Press / Public Affairs (HPPA), Odutayo Oluseyi , said the government recognizes the importance of chopper operations , as it continues to restate commitment to best practices.

The concessionaire: NAEBI Dynamic Concepts Limited , he said is working with the Nigeria Airspace Management Agency (NAMA), to achieve the task of seamless collection of the landing levy.

He said :” The introduction of helicopter landing levies, which is in line with international best practices to enhance the quality of helicopter operations is a cost recovery measure.”

Helicopter landing levies, he said are commonplace in countries such as the United States, the United Kingdom, India, and various regions worldwide.

He cited the Tallahassee International Airport in Florida, which began implementing helicopter landing levies under Vector Airport Systems since October 1, 2022.

Helicopter landing levies, he said are common across airfields in the United Kingdom, ranging from major commercial ones to small general aviation fields.

“Typically, helicopter levies match or exceed those for fixed-wing aircraft, varying based on factors like location and services provided,” he said.

The Federal Government granted NAEBI Dynamic Concepts Limited exclusive rights to collect helicopter landing levies in line with the MoU between NAEBI Concept and NAMA (focal Agency), Federal Airport Authority of Nigeria (FAAN) and the Nigeria Civil Aviation Authority (NCAA).

He further said:” It is instructive to note that NAMA under the Act as amended in 2022 is empowered to collect aeronautical revenues in both the upper and lower airspace to support her self-sustainability.

“However, over the years NAMA has predominantly relied on the upper airspace for her revenue generation. Government in her wisdom having discovered a lacuna on the lower airspace where helicopter operations is dominant directed NAMA to live up to her responsibilities to enable them generate enough resources to sustain their aeronautical architecture, enhance security and surveillance, and improve the overall quality of helicopter operations in Nigeria.

“We are confident that this move will improve capacity, efficiency, safety, security, and attract more investment in the aviation industry. We encourage all stakeholders to be committed to this laudable initiative that has followed due processes and procedures, and should embrace the new normal.”


Show quoted text

Continue Reading

Oil & Gas

Annual OGTAN awards holds May 24



The 2024 prestigious Oil and Gas Trainers Association of Nigeria (OGTAN) will be held on Friday, May 24, 2024, at Muson Center, Lagos.
Spread the love

The 2024 prestigious Oil and Gas Trainers Association of Nigeria (OGTAN) will be held on Friday, May 24, 2024, at Muson Center, Lagos.

According to the statement released by the National Publicity Secretary of the association, Dapo Omolade, the Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe will deliver a keynote address while major industry players and companies have been nominated for different award categories.

OGTAN is the independent umbrella Group of Training Services Providers in the Oil and Gas Sector established by the Nigerian Content Development and Monitoring Board in 2010, representing the Education and Training Sectoral Group of the Nigerian Content Consultative Forum (NCCF) under Section 58 of the NOGICD Act (2010), with the purpose to build local human capital capacity in the Nigerian Oil and Gas industry and act as a business group that interfaces with Operators, International Organizations and the Nigerian government.

OGTAN presently has more than 400 companies as members that cut across all training and human capacity development value chain for the energy industry and other sectors. OGTAN, as a body has demonstrated excellence in her strides to ensuring that competence and industry is developed in-country while upholding global best practices. This explains its acceptance in the industry as a one-stop shop for all training needs.

Awardees for 2024 include industry giants and individuals from the private and public sectors such as CHEVRON, FIRST E & P, PTDF ES, SEPLAT Energy, NINAS, OILSERV, TOTAL ENERGIES, Prime Atlantic Group, CHARKINS Maritime, TOLMANN, CMD, ITF, SON, PTI and Samsung.

Omolade disclosed that the event will experience a night of recognition of excellence, achievements, fun and glamour.

Continue Reading

Top Stories