MSMEs fund hits N220 billion –CBN-From Chukwudera Eze

The Central Bank of Nigeria (CBN) at the weekend in Enugu disclosed that the Micro, Small and Medium Enterprises (MSMEs) fund has hit N220 billion.
The bank which announced this at a three-day sensitisation fair it embarked upon to create awareness, said the apex bank was also in Enugu to explain its activities to the people, as well as acquaint them with the opportunities available in the bank.The CBN’s acting Director, Corporate Communications, Mr Isaac Okorafor, who stated this also, said that 60 per cent of the MSMEs fund was designed for women and enterprises owned by them.
According to him, some states in the federation have already accessed the fund to the tune of N1 billion and N2 billion which they have also retailed to the registered cooperative members in their states. “Some states elected to pay the interest which is not more than nine per cent on behalf of the beneficiaries. That is a lot of guarantee and some are recording huge success.He, however, called on Nigerians to re-adjust so as to get out of the present economic situation. “With this kind of situation, Nigerians should try to adjust themselves.
This is the real change, we need to change our ways to the realisation of a new troubling situation that is no longer business as usual. Nigerians should learn how to save the little they have so they can use it over time. “Nigerians should begin to eat what we produce and not to look for expensive dollars to import food.
We should go back to corn, yam and made in Nigeria rice. Let us produce tooth-pick and not import it from China. We should stop importing chicken when we have them here. Nigeria should brace up. This is not a 100-metre marathon.
Let us brace up and change our ways,” he pleaded.Okorafor also disclosed that the main objective of the sensitization programme was to create awareness about CBN activities and the numerous opportunities that could help to grow the real sector of the country’s economy.

Culled from Sun

Beautiful photos of PDP Chairman Ali Modu Sheriff's daughters

Chibok: Drama as BBOG, pro-Buhari group clash- Molly Kilete

There was a mild drama yesterday between members of BringBackOurGirls (BBOG), group and the police who prevented the campaigners from embarking on their peaceful protest in Abuja.
The members, who gathered at their usual Unity Fountain venue as early as 6am, commenced their peaceful procession at exactly 930, when a police officer, Abiodun Alamatu, approached their leader demanding a police permit.
Leader of the group, Mrs. Oby Ezekwesili, immediately presented the police officer acknowledgement copies of the letters submitted to the Federal Capital Territory (FCT) Police Command after which they were allowed to continue.
However, not satisfied with the letter, the police again stopped the protesters halfway to the road leading to the Presidential Villa, insisting that the group did not get police approval to embark on the protest.
Led by Mr. M.D. Garba, a Deputy Commissioner, the police barricaded the road, thus forcing the BBOG members to surge through the barricade of riot policemen and officers, and eventually got to the entrance of the Villa. The march caused traffic gridlock. While the police were busy preventing the BBOG from having access to the Villa, another group which identified themselves as ‘With Buhari We Stand’, were already at the venue chanting and condemning the BBOG’s, constant demand for the release of the Chibok girls.
Not deterred by the mission of the pro-Buhari group, the BBOG went ahead to paste the photographs of each of the missing Chibok girls on the walkways after which they addressed the Press on their mission.
In her address, one of the leaders of the group, Aisha Yesufu, said rescuing the kidnapped Chibok girls was a right and not a privilege as it is being perceived by the government and its agents.
She said: “It is not a privilege to bring back our girls; it is not right, adding that “the option of do-nothing, unfortunately, is what the government is doing.”
Also speaking, leader of the pro-Buhari group, Idris King, described the kidnapping of the Chibok girls as a scam. He said the Buhari administration was doing everything to rescue the girls alive.
The two groups, which shouted and abused one another were, however, prevented by the police from attacking themselves.
When contacted on why the police prevented the BBOG from embarking on their peaceful march which they have been carrying out for some time now, the Police Public Relations Officer (PPRO), Anjuri Mamzah, denied the claim.
He said the police did not prevent members of the group or any other group from embarking on protest.
However, the FCT Police Command had on Monday, September 5, issued a statement advising individuals and groups wishing to embark on any demonstration to notify the Commissioner, in writing and secure approval.
The statement which was issued at about 9pm in the night said:
“The FCT Police Command has observed with serious concern the flagrant disregard for the law some individuals and group of persons who lay siege to the Federal Capital City in the form of protests and demonstrations.
“These indiscriminate actions which are carried out in disorderly and sometimes riotous manner, create unwarranted tension and apprehension among law-abiding citizens and in the process, obstruct legitimate business activities.”
The statement signed by the commands’s PPRO, said: “It is on this note that the command is making it clear that it will continue to be professional in discharging its constitutionally assigned roles in accordance with international best practices especially as it relates to the fundamental rights of citizens.
“However, the command will not fold its arms and watch some individuals or group of persons tamper with the existing peaceful atmosphere in the Federal Capital Territory.
“The command hereby advises any person or group of persons who wish to embark on any demonstration to notify the Commissioner of Police FCT in writing and secure approval,” the statement added.

Culled from Sun

FG has recovered N3.4trn looted cash, assets –Amaechi — By Emma Njoku

Minister of Transportation, Chibuike  Amaechi revealed yesterday that the President Muhammad Buhari government has recovered N3.4 trillion in cash and assets while about N115 billion worth of cash and assets have been discovered in the United States, United Arab Emirates and United Kingdom.
They were reportedly bought with looted funds.
The minister also added that government has reduced cost of administration by 25 per cent.
Delivering a keynote speech at the opening of the 34th Cambridge University prestigious International Symposium on Economic Crime, at Jesus College, University of Cambridge, United Kingdom yesterday, Amaechi said through measures to block conduits of “waste, the cost of running the central government in Nigeria has been reduced by more than 25 percent in the last 18 months.
“Our president has stopped at nothing to demonstrate that whosoever is caught in corruption related crimes will not be spared. In his days as military Head of State and through other positions he has held in public life, he has upheld a life of integrity.
“He is a typical example of how a leader can inspire committed followership through the force of example,” Amaechi said of Buhari. The minister, who spoke on “Beyond Blame Game: The Imperative of Tackling Economic Crime Together”  said economic crime is often committed in an organised manner, involving several people, sometimes, across countries through multiple jurisdictions.
“At the Seventh African Union and Economic Commission for Africa conference that held in Abuja back in 2014, former President of South Africa, Thabo Mbeki stated that Africa loses between $50 billion to $60 billion annually as a result of Illicit Financial Flows (IFF).
“These are said to occur through forms of tax avoidance, including transfer pricing or mispricing, depending on which side you are, through which multinationals minimise their tax obligations by shifting their profits from high tax to low tax jurisdiction, thereby short-changing some of their host countries, especially in the developing world and draining them of legitimate revenue, impeding their projects and denying their population access to basic services,” Amaechi noted.
He further explained that because economic crimes are committed through networks, sometimes spread over countries, it is, therefore a global problem that can only be effectively tackled through global collaboration and partnership.
“As someone who has been in active politics for more than 30 years, I have learnt that many well-intended reforms are possible only if the leader can offer the requisite leadership and muster the right political will.  In my country, since our President, Muhammadu Buhari, was elected, he did not leave anyone in doubt that the fight against corruption will not only be taken seriously, but will form a cardinal plank of his policy direction. So far, he has made several pronouncements that set the tone of his commitment to strengthening anti-corruption agencies to go after anyone who has questions to answer. The president’s resolve was enough signal to all of us, members of his cabinet and the citizenry, that an end has come for the old ways of doing things. Currently, many people who have been indicted in one form of corrupt practice or another are being prosecuted in our courts. That, I believe is the way to show leadership and take responsibility.
“Another important factor is what I refer to as the force of example. There is very little any leader can achieve if he talks the right political talk without offering personal examples. In these days of internet and social media revolution, citizens often spend time to scrutinize the reputation and activities of any leader to find out if they are consistent with what he or she stands for in the media. Essentially leaders must practice what they preach if they expect to be taken seriously both by those within their organisations, state or country or outside,” he stated.
Amaechi again gave the example of President Mohammadu Buhari and his commitment to lead the fight against corrupt practices through personal example.
Amaechi concluded that economic crime has become a strong force that can only be successfully confronted if all hands are on deck.
“As an interconnected and rapidly globalising world, it’s vital we work together, in partnership, to collectively fight economic crime.  This is a common enemy and a very smart one for that matter.
“It seeks to beat every barrier that we mount against it. It is my humble submission that we must hold hands together as never before to confront the spread of economic crimes squarely and successfully.”
Hon. Jeremy Wright, the Attorney-General of England and Wales and Advocate General of Northern Ireland also spoke on the first day of the week-long symposium.
Last Friday, Minister of Information and Culture, Lai Mohammed, said the N78 billion recovered looted funds were not enough to revive the economy.
The minister, who spoke at the News Agency of Nigeria Forum, said “the N78 billion and $3 million so far recovered were not even sufficient to pay half of the Federal Civil Servants’ salaries in a month.
“What we have recovered and if my record is right, is about N78 billion and $3 million. We’ve blocked other accounts with about $9 billion, but the money is not available to us because we are still in court.
“The government spends N165 billion monthly on Federal Civil Servants. So what we have so far recovered cannot even pay 50 per cent of the salaries in a month. What has been recovered is so little compared to what we need on a continuous basis.”
Mohammed further said every penny recovered would be “judiciously” spent, adding nobody would be able to “re-loot” what has been recovered by the government.

Culled from Sun

How Aero Contractors, First Nation airlines flew into insolvency —by Louis Ibah

The bell tolls for the Nigerian economy as the government and its private sector battle a humongous recession considered the worst in 29 years threatens to wipe off millions of jobs in critical sectors.
As at last weekend, the omnious economic headwind had taken its first casualties in the aviation industry when two prominent indigenous airlines, Aero Contractors and First Nation, announced the suspension of scheduled flight operations, thus throwing over 2500 Nigerians into the labour market. And if the recent statistics released by the National Bureau of Statistics is anything to go by, it then means that close to five million Nigerians have lost their jobs in the last one year. That however, may not be the end of the story as many more jobs are on the line as the crisis bites harder in various sectors. Aero Contractors and First Nation announced the suspension of scheduled commercial flight operations citing a harsh operating environment which included the high cost of aviation fuel and acute shortage of foreign exchange to carry out routine maintenances of their aircraft overseas.
“The operating environment within and outside the airline have hindered any possible progress especially in the last six months when the naira depreciated against the dollar thus making it impossible for the airline to achieve its operational targets,” said Aero CEO, Fola Akinkuotu.
Similarly, First Nation spokesperson, Serah Awogbade, stated, “Current foreign exchange constraint, coupled with over 70 per cent devaluation of the Naira partly contributed in no small measure to this development”.
The two airlines jointly employ over 2,500 direct and indirect Nigerian workers and industry analysts are of the view that should they fail to bounce back, Nigeria’s unemployment situation could worsen.
Aside the job losses, the shut down of the two airlines is also expected to lead to a rise in airfares on those routes where they were either major players or second most visible players. With the economy already in recession and disposable income shrinking all the way industry analysts foresee a situation where most air travelers will now opt to journey by road in the event of a spike in airfares.
What went wrong?
The state of infrastructure at Nigeria’s airports may have witnessed an impressive facelift propelling more passenger patronage for airlines like Aero in the last six years, but for investors in the domestic airline industry the passenger surge had failed to translate into profitability owing to several other factors.
In fact, in the past six years, local operators have struggled to stay afloat in the face of five excruciating factors, include: paucity of funds caused largely by the scarcity and high cost of foreign exchange (forex) and the apathy by creditor institutions to grant loans to finance new fleet acquisition and routine maintenance abroad; the high premium charged by local underwriting firms; multiple taxation by regulatory agencies and service providers; as well as the exorbitant cost of aviation fuel which accounts for more than 45 per cent cost of airline’s operation in Nigeria. The fifth, which is the designation of multiple routes to some foreign airlines by the Federal Government, many industry analysts insist had signaled an end to the existence of robust and economically viable airlines plying Nigeria’s domestic routes.
How BASA hurt the airlines
Aero became one of the victims of Nigeria’s highly criticised BASA deals. How? For instance, three foreign airlines:  Ethiopian Airlines, Kenyan Airways, KLM/Air France, and Emirates are all carrying out commercial flight operations out of more than one airport in Nigeria. This trend analysts have pointed out negates globally known best practices which seeks to protect the local industry by allowing foreign carrier utilise just one major international route into a country, while the domestic airlines are given the chance of feeding the foreign airlines with passengers from the other airports within the country.
Multiple designation, in the case of what is happening at present in Nigeria meant that local airlines like Aero and First Nation, which hitherto profited by picking passengers from Kano, Port Harcourt to Abuja or Lagos for foreign airlines like Emirates and Ethiopian Airlines was heavily shortchanged in terms of earnings under the new arrangement.
How Aero went down  
In January 2004, Schreiner Airways which originally owned Aero Contractors was bought by CHC Helicopters, that took over the 40 per cent holding of Schreiner, while the wealthy Ibru family that same year took over the 60 per cent majority shares as core investors. On July 1, 2010 CHC Helicopters sold off its interest in Aero and that was when the airline became wholly owned by the Ibru family.
Under Ibru’s ownership it underwent a massive transformation in its business model, changing from charter services to scheduled commercial flight operations. This saw the airline expanding its flights services to most of Nigerian airports and some sub-regional routes, while at the same time growing its fleet outside helicopters to include seven Boeing 737-400; six Boeing 737-500; two Dash 8 Q400; and one Dash 8 Q300 aircraft.
Aero under the Ibru’s immediately became the darling of many air travelers in the country and within the West African sub region.  Its entry into the commercial airline industry occurred at a time that Nigeria recorded several air crashes in its industry. Aero drew more passengers than other airlines at that time because of its safety record, which was unmatched in the nation’s aviation industry.
The August 31 snag
Unfortunately, August 2016, from a fleet of over 13 aircraft, Aero had shrunk its fleet to just one functional aircraft, a negation of the Nigerian Civil Aviation Authority (NCAA) minimum requirement for an airline to remain in commercial flight operations. On August 31, 2016, Aero’s CEO, Captain Fola Akinkuotu, announced that the airline would be suspending all its scheduled commercial flight operations the following day, September 1, 2016, and about 1,400 staff were asked to proceed on compulsory leave. Akinkuotu cited a harsh operating environment as having wrecked the airline’s fortunes in the preceding six months as reasons for shutting down the airline. But that was far from the truth. Aero, in fact, had been operating for the past six years like a two-engine aircraft that had lost both engines and was merely gliding towards its final crash. This was very evident in its inability to maintain its fleet of over 13 aircraft, it had about a decade ago. The airline business is all about functional aircraft, and once that is absent, the airline ceases to exist.
Aero’s flight into insolvency
Aero’s flight into insolvency was however not just about the external factors cited above. Internally, as the years went by following its takeover by the Ibru’s famility, allegations of widespread mismanagement and stealing from the airline’s vault were rife in the industry. At a stage, the level of mismanagement in the airline was said to have constituted a clog in the ability of the airline to effect routine maintenance of the aircraft in its fleet, than other factors. Some aircraft sent for maintenances abroad could not be brought back owing to the inability to pay. Creditor banks and insurance firms were similarly owed. The Federal Government sensing that the airline was on the brink of collapse compelled the Asset Management Company of Nigeria (AMCON) to step in with a bailout package. An estimated N25billion is believed to have been injected into the airline by AMCON. But the looting did not stop. “Corruption killed Aero,” one of its staff told Daily Sun.
Secretary General of the National Union of Air Transport Employees (NUATE), Mr. Olayinka Abioye, told Daily Sun “that the major problem of Aero Contractors is to be found in the management of the airline’s finances and the lack of trust between AMCON and the Ibru family immediately AMCON came in.”  The distrust had dire consequences on some of the initiatives put forward by AMCON to resuscitate the airline. An attempt to either downsize or slash the salaries of over 1,400 workers (considered as bogus) was stiffly resisted by the airline and the industry union. Most of the workers considered to be irrelevant to the contemporary requirements of the airline were alleged to have been related to top shots of the airline, hence the difficulty in retrenching them.
But by February 2016, AMCON was forced to fully take over the airline and sack its board and management staff following the discovery of the massive looting of funds.
Matters became worse when late last year (2015) Aero was sanctioned and made to pay a fine running into millions of naira by the NCCA for violating safety rules and having passengers disembark its Boeing 737-500 aircraft on its chartered flight to the Bauchi airport from Abuja on December 19 2015 using a ladder. As at date, Aero is said to be indebted to creditor institutions and other service providers to the tune of over N30billion.
The way out
Aero’s exit which was joined the next day by First Nation, had sent shivers down the spine of stakeholders in Nigeria’s aviation sector. Although, the NCAA had come out to say that all was well with the industry and promised that the two airlines would soon return to operation, not very many watchers of the industry believed the NCAA story. The Federal Government, according to stakeholders should convene an emergency meeting where airline investors, regulators, and airport owners, would meet to chart the way forward for the industry.
“The industry should be seen as an infant industry and the government should declare a state of emergency in aviation,’ said analyst, Chris Aligbe. “We all the know the challenges; from fuel, forex, insurance, multiple taxes, multiple designation of routes to foreign airlines, and the recent debt recovery drive by some industry agencies, these are all having affect on the airline. It is these issues that the government should speedily address,” Aligbe added.
Chairman of the Airline Operators of Nigeria (AON), Captain Nogie Meggison in an interview with Daily Sun lamented the plight of the two airlines and some others caught under the weight of several government policies, which were inimical to their businesses.
There is only one way out for the distressed airline industry, Meggison said. “It is a big source of concern for all of us in this industry that First Nation and Aero Contractors have stopped operating considering the services they render to Nigerian air travelers and also the fact that they employ a lot of Nigerians,” said Meggison.
“I speak like a Nigerian, the Federal Government now has to sit down and come up with a vision and policies that will get the economies of the airlines out of the woods.”
“The policies that we have are not helping the airlines and we have said this repeatedly. Aviation is the barometer by which the prosperity of any economy is measured.
In Nigeria no airline is operating at its optimal capacity and that is not very good. Under a recession like we are currently faced, a viable aviation and logistics industry is key to getting the economy back on track, and we cannot afford to allow the airlines die” he added.

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Air Peace rewards loyal customers with free tickets
Air Peace has issued hundreds of free business and economy class tickets to its loyal customers who have earned enough points under the airline’s frequent flyer programme tagged “Peace Advantage.”
In a message sent to the qualified customers, the airline said it was grateful to them for their loyalty and patronage.
“You have kept faith with us and continued to make Air Peace your airline of choice. On behalf of the chairman and management of Air Peace, please accept our heartfelt gratitude and congratulations,” the airline said.
“The Peace Advantage package,” Air Peace added, “is our way of giving customers a well-deserved appreciation for their decision to fly with us always. With a Peace Advantage card, the traveller gets additional travel time on any destination they wish each time they travel with us.”
Meanwhile, the airline has acquired two new Boeing 737-500 aircraft as part of efforts to boost its fleet and route expansion programme.
Chairman/CEO of the company, Chief Allen Onyeama, who spoke in an interview with journalists recently said the investments in the new aircraft had become necessary following the receipt of licences to commence regional flight operations. Said Onyeama, “One of the new aircraft has the capacity to take 142 passengers, while the other can take 126 passengers. In our fleet, we have nine Boeing and one Donnier arcraft, which makes us the second largest airline in Nigeria in terms of the number of aircraft. Some of the aircraft we will deploy for the regional routes. We have visited the civil aviation and relevant authorities in these countries and plans are at advanced state.
We will soon announce our commencement dates on these routes but one thing that we want to assure our passengers is that we will put in our cockpit the best of pilots,” Onyeama added.

Culled from  Sun

2500 jobs lost as First Nation Airways suspends operation-By Louis Iba

Barely 24 hours after Aero Contractors shut down all its scheduled flight operations, another domestic carrier, First Nation Airways, has announced the suspension of its commercial operations in the country.
This comes as aviation unions comprising the Air Traffic Services Senior Staff Association (ATSSSAN) and the National Union of Air Transport Employees (NUATE) took over the head office of the embattled Aero Contractors at the Murtala Muhammed Airport (MMA), Lagos, protesting the suspension of the airline’s scheduled flights and their being locked out from offices without adequate notice.
And just like Aero, First Nation has been operating without the requisite number of functional aircraft to ply its designated routes. Its aircraft are all on routine maintenances abroad and, according to the Nigerian Civil Aviation Regulations (NCARS), no airline operator is permitted to carry out scheduled commercial operation with only one aircraft.
Daily Sun learnt that about 2,500 jobs could be lost should the two airlines fail to come back into operation.
Director General of the NCAA, Captain Usman Mukthar, in a statement yesterday acknowledged the suspension of services by the two airlines, noting that they acted in line with regulatory stipulations.
Said Mukhtar: “Any airline with one aircraft is in contravention of the authority’s regulations and therefore cannot be adjudged to be capable of providing safe operation. The only option available is to suspend your operations temporarily while other aircraft arrive in due course.
“However, NCAA’s regulations provide a window for such operator to embark on non-schedule operations in the interim.”
According to the NCAA boss, Aero Contractors at present has only one serviceable aircraft, while First Nation is in the middle of an engine replacement programme for one of its aircraft with the other aircraft in its fleet already due for mandatory maintenance.
“First Nation is currently undergoing maintenance on A319 fleet and this maintenance exercise will be completed on or before September 15, 2016,” said the airline’s spokesman, Serah Awogbade, in a statement yesterday.
Awogbade explained that the airline had faced some operational challenges, which had impacted negatively on its business and efforts to ensure the availability of serviceable aircraft in recent months.
“Present foreign exchange constraint, coupled with over 70 per cent devaluation of the naira contributed in no small measure to this development,” he said.
“Safety is our priority and we look forward to reinstating service shortly upon completion of current maintenance upgrade,”  Awogbade added.

Culled from Sun

2 Canadian women busted with cocaine worth $22m in Australia while on worldwide cruise

Two Canadian women 23-year-old Melina Roberge and 28-year-old Isabelle Lagacé, who were on a dream world wide cruise were on Monday arrested by the police in Australia, according to a release by the Australian authorities.
Authorities say approximately 95 kilograms of cocaine were allegedly found in the suitcases of the two friends and another Canadian man, 63-year-old man, Andre Tamine who was travelling with them when they arrived in Sydney on a cruise ship. All three were arrested in Australia.

According to the Daily Telegraph, the value of the drugs was $30 million Australian dollars, which is about $22 million in U.S. dollars.
The bust came on the 51st day of a 68-day cruise on the Sea Princess, reports the Sydney Morning Herald. The Star states authorities were prepared to search the ship when it arrived in Sydney after a joint investigation which included the Canadian Border Service Agency and the U.S. Department of Homeland Security.

They were aboard the MS Sea Princess cruise. Tickets for the MS Sea Princess cruise cost around £8,500

They shared photos from exotic locales around the world including Tahiti, Peru, Bermuda, Morocco and more. "Traveling is one thing ... But traveling with an open mind, ready to taste everything, see everything, learn everything and get yourself out of your comfort zone .. Is probably the best therapy and lesson ever," Roberge wrote in one post from the holiday.

The women had spent the past two months cruising around the world and documenting their lavish holiday on their public Instagram accounts. According to Facebook accounts that appear to belong to them, Lagacé was a waitress at a Longueuil bar and Roberge was a manager at a Montreal jewelry store. According to their Instagram accounts, they began their adventure on July 9 in Southampton, England.

Clive Murray from the Australian Border Forces said the bust came after work alongside US and Canadian authorities.
He said:

"These syndicates should be on notice that the Australian Border Force is aware of all of the different ways they attempt to smuggle drugs into our country and we are working with a range of international agencies to stop them."

AFP Assistant Commissioner Crime Operations Shane Connelly said:

"Today’s successful operation has resulted in three arrests and we will not rule out further activity as we continue our investigations. "The AFP is committed to working with its partner agencies to protect the community by stopping these dangerous drugs making their way to Australian communities, and bringing those responsible to justice."

The trio have been charged with importing drugs and are due in court this week and now face life imprisonment if convicted of drug smuggling in Australia, where cocaine prices are among the highest in the world.


  Culled from People magazine/AFP