Economy
Egypt Hopes for Tourism Boost as Flights From Russia Resume
By Kester Kenn Klomegah
Russia and Egypt agreed finally to resume regular flights to Cairo, Hurghada and Sharm El Sheikh from August 9 after several negotiations and security inspections carried out for more than five years.
On the other hand, Egypt is particularly expecting to raise its tourism among holidaymakers throughout the various cities in Russia. Egypt’s resorts of Sharm El Sheikh and Hurghada are highly popular for foreign vacationers, not only Russians but also tourists from Western, European, Asian and African countries.
Egyptian Ambassador in Moscow Ehab Nasr said that the return of Russian tourists to Sharm el-Sheikh and Hurghada would have a positive impact on the national economy. Rebounding tourism will necessarily translate into a revival in related sectors, the diplomat noted, adding this should contribute to creating new jobs especially during the coronavirus pandemic.
Nasr made it clear that Egypt had organized visits for a Russian medical delegation to the Red Sea resort cities of Sharm el-Sheikh and Hurghada to see for themselves quarantine measures applied at airports and tourist facilities, and the delegates were pleased with the security and precautionary measures.
With coronavirus rapidly spreading, Egypt has given the assurance to maintain strict procedures for the immediate detection [of coronavirus] upon arrival and there are strict public health standards that are being observed at hotels and tourism objects, as well as a set of strict control measures to ensure the safety and health of Egyptian citizens and tourists.
Statistics are staggering but Russians constituted the largest segment of foreign tourists visiting Egypt. According to documents, before the suspension of flights in 2015, about five million Russian tourists visited Egypt, making up one-third of all visitors to the country. Rosstat, Russia’s Statistics Bureau, adds that nearly 20 per cent of all Russians travelling abroad prefer Egypt.
Chair of the Egyptian Parliament’s Tourism Committee Nora Ali has said that the resumption of direct Russian flights to the Red Sea represents a big boost for Egypt’s economy and the tourism industry.
“The landing of the first direct Russian flight at Hurghada airport on Monday morning should be considered a moment of great happiness for the tourist industry in Egypt,” said Ali, adding that “Russian tourists represent a big force for the Egyptian tourist industry.”
According to Ali, “the return of direct flights between Russian cities and the two Red Sea resorts of Hurghada and Sharm El-Sheikh is set to increase Egypt’s tourism revenues by at least $2 billion.”
MP Sahar Talaat Mostafa, Chair of the Egyptian Russian Business Council, also said in a statement that the return of direct flights between Russian cities and the two Red Sea resorts of Hurghada and Sharm El-Sheikh after a six-year hiatus comes after a long period of cooperation between Russian and Egyptian authorities.
“Egypt has done all it can to make sure that direct flights between Russia and Egyptian Red Sea tourist resorts operate smoothly and that Russian tourists enjoy holidays in Hurghada and Sharm El-Sheikh,” said Mostafa. According to Mostafa, Hurghada and Sharm El-Sheikh are expected to see 20 direct flights from Russian cities.
Maya Lomidze, Executive Director of the Association of Tour Operators of Russia Maya Lomidze said the resumption of regular tours to Egypt for Russians is a huge step forward for the entire tourism industry, but it is still not enough to say that the flow of tourists will grow rapidly.
Russia has its own airlines, and EgyptAir will simultaneously run four direct flights weekly between Moscow and Hurghada, while three flights are scheduled between Moscow and Sharm El Sheikh. Hurghada International Airport received on August 9 the first flight coming from Moscow after nearly six years of suspension prompted by a plane crash disaster that took place in 2015.
Flight MS724 of Airbus A330-300 arrived in the Red Sea resort city of Hurghada with 300 Russian tourists on board. The airport staff received them with roses, souvenirs, and flyers that include information about Egyptian tourist destinations in the Russian language. A ceremonial water salute was held upon the flight landing at the airport.
In a statement, Board Chairman of EgyptAir Holding Company Amr Abul Enien said EgyptAir’s operation of direct flights between Moscow and each of Hurghada and Sharm El Sheikh coincides with the resumption of tourism flights between Egypt and Russia. He said such a step would greatly contribute to providing more services and travel options and lure in more tourists from Russia to Egypt.
All flights between Russia and Egypt were completely suspended in November 2015 after a passenger jet owned by Russia’s Kogalymavia airline bound from Sharm El Sheikh to St. Petersburg exploded over the Sinai carrying 217 passengers and seven crew members, killing everyone on board. The Federal Security Service (FSB) ruled the incident as a terrorist attack leading to the abrupt cancellation of all flights from Russia to Egypt.
By Adedapo Adesanya
Manufacturers are yet to benefit from relief on the burden of multiple taxes and levies despite the enactment of the Nigeria Tax Act 2025, according to the Manufacturers Association of Nigeria (MAN).
The association, in its Manufacturers CEO Confidence Index (MCCI) report for the second quarter of 2026, said manufacturers continued to face multiple tax collectors and regulatory agencies during the period.
Director-General of MAN, Mr Segun Ajayi-Kadir, said the new tax law, which was expected to reduce the burden of multiple taxation, had yet to deliver the intended benefits.
“Manufacturers complained that they were still met with multiple tax collectors and regulators in Q2 2026. It follows that the implementation of the Nigeria Tax Act 2025 is yet to achieve its objective of relieving manufacturers of the burden of taxes and levies,” he said.
According to the report, Nigeria’s business environment remains largely unsupportive of manufacturing growth, with local sourcing of raw materials emerging as the only indicator that recorded noticeable improvement.
MAN, however, warned that the gains in local sourcing could be undermined by worsening insecurity in parts of the country.
The association attributed the improvement largely to persistent foreign exchange constraints, which have forced many manufacturers to source inputs locally.
Despite this, it said excessive regulation and multiple taxation continue to weigh heavily on manufacturers.
The report showed that manufacturers recorded a modest increase in sales volume during the second quarter, but rising production, distribution and logistics costs continued to erode profitability.
It added that capacity utilisation, production levels, investment and employment remained broadly unchanged during the review period.
MAN further observed that although recent foreign exchange reforms had helped stabilise the naira, inadequate foreign currency supply remained a major constraint to manufacturing operations.
Other key challenges identified in the report include poor infrastructure, high production costs, raw material shortages and unfavourable trade policies.
The association said the findings underscore the continued pressure on manufacturers despite recent fiscal and foreign exchange reforms, stressing the need for more effective implementation of policies aimed at improving the operating environment for the real sector.
By Adedapo Adesanya
The federal government spent N3.14 trillion on servicing its domestic debt in the first quarter (Q1) of 2026, according to the Debt Management Office (DMO).
The figure, contained in the DMO’s latest domestic debt service report for Q1 2026, comprised N2.97 trillion in interest payments and N169.68 billion in principal repayments.
According to the report, the government spent N741.82 billion on domestic debt service in January before the figure rose to N967.67 billion in February.
Debt service increased further to N1.43 trillion in March, bringing total spending for the quarter to N3.14 trillion.
The March figure represented a 47.7 per cent increase from the N967.67 billion recorded in February and was 92.7 per cent higher than the N741.82 billion spent in January.
The debt office said interest payments accounted for approximately 94.6 per cent of the total domestic debt service during the quarter.
Treasury bills accounted for the largest share of interest payments at N1 trillion, while interest payments on Federal Government bonds stood at N1.96 trillion.
The government also paid N4.24 billion in interest on FGN savings bonds during the period.
The debt management body said the principal component of the debt service comprised N169.68 billion in repayments on local-denominated promissory notes.
Overall, domestic debt service rose significantly throughout the quarter, with March alone accounting for nearly half of the N3.14 trillion spent between January and March.
By Aduragbemi Omiyale
The Director-General of the Securities and Exchange Commission (SEC), Mr Emomotimi Agama, has outlined how the Federal Capital Territory Administration (FCTA) can leverage Nigeria’s capital market to raise long-term funds for critical infrastructure projects instead of relying solely on annual budgetary allocations.
According to Mr Agama, the capital market offers the FCT a sustainable financing model for roads, rail, housing, water, transport and other infrastructure through instruments such as infrastructure bonds, green bonds, real estate investment trusts (REITs), asset recycling and tokenised municipal securities.
Speaking at the Abuja Business and Investment Summit and Expo (ABIE 2026) in Abuja, the SEC chief noted that Abuja’s development demonstrates that economic growth is driven by investment, stressing that “cities are not built by budgets alone. Cities are built by capital markets.”
He advised the FCT to establish a long-term infrastructure bond programme backed by dedicated revenue sources such as ground rents, tenement rates, tolls, parking fees and land-use charges, noting that this would enable the territory to finance major projects without overburdening annual budgets.
“A budget can only spend what a single year has collected. A bond can spend what 30 years will collect,” Mr Agama said, explaining that infrastructure projects generate long-term economic value that can be used to service debt over time.
The SEC boss said the territory could also access cheaper financing through green and sustainability-linked bonds for projects including mass transit, light rail, solar-powered street lighting, waste-to-energy facilities and water infrastructure.
He further proposed the creation of an FCT Real Estate Investment Trust to unlock value from Abuja’s extensive property portfolio while giving ordinary Nigerians an opportunity to invest in the city’s real estate market.
Mr Agama also urged Abuja Investments Company Limited (AICL) to consider listing some of its businesses or establishing a listed infrastructure fund, saying this would raise capital without increasing government debt while improving corporate governance and transparency.
On the long-abandoned Millennium Tower project, he said the estimated over N400 billion completion cost should not be viewed as a budgetary burden but as an investment opportunity that could be financed through a special purpose vehicle and offered to investors via the capital market.
“The question is not whether Nigeria can afford the Millennium Tower. The question is whether we will let ordinary Nigerians own it,” he said.
Mr Agama further proposed an asset recycling programme under which completed income-generating public assets, including terminals, markets, commercial properties and the International Conference Centre, could be securitised or concessioned to institutional investors, with proceeds reinvested in new infrastructure.
He also called on the FCT to pioneer a regulated tokenised municipal bond programme that would allow citizens to invest as little as N10,000 through mobile phones in specific infrastructure projects.
According to him, the recently enacted Investments and Securities Act (ISA) 2025 has strengthened the legal framework for sub-national governments to access the capital market while providing enhanced investor protection and clearer regulation of digital assets.
Mr Agama disclosed that Nigeria’s capital market has grown significantly, with total market capitalisation exceeding N217 trillion as of May 2026, comprising about N160.5 trillion in equities and N56.7 trillion in bonds.
He said recent reforms, including the migration to a T+1 settlement cycle and regulatory measures to deepen market participation, have improved market efficiency and strengthened investor confidence.
The SEC DG assured the FCTA of the commission’s readiness to provide technical support for structuring and registering capital market instruments, saying the agency would work closely with the territory to unlock financing for infrastructure projects.
He added that Nigeria’s capital market remains critical to mobilising domestic savings for national development, insisting that “money is not scarce; delivery capacity is scarce, and financing follows delivery capacity.”
