Economy

Expect 45% Hike in Air Fares—FAAN

Published

6 years ago

28/05/2020

By Adedapo Adesanya

The Federal Airports Authority of Nigeria (FAAN) has said airline operators may increase fares by 45 percent once the aviation sector kick-starts operations.

The sector has been under ‘lockdown’ following the closure of the airspace by the federal government for over a month. The airports are expected to be reopened on June 7 if the coast is clear.

The General Manager, Corporate Affairs of FAAN, Mrs Henrietta Yakubu, speaking at an aviation webinar organized by Women in Aviation (WIA) Nigeria with the theme Aviation: The New Norm in the post COVID-19, said that air passengers should also expect delays and long hours of checks and re-checks right from when they arrive at airport .

“Passengers should expect that airlines will charge more in terms of airfare, the International Air Transport Association (IATA) said that there would be 45 percent increase in fares,” Mrs Yakubu said.

She, however, assured that arrangements were in the works towards the reopening of the nation’s airports soon.

Mrs Yakubu also said escorts of VIPs would no longer be allowed to follow their principals into the terminal and that such principals would be subjected to all health checks.

“Passengers are expected to leave their home early hours before their flights to go through the various checks before entering the terminal and after.

“We are going to expect flight delays, flights will experience delays from checks and re-checks. If you are travelling, I will expect a potential traveler to leave home hours before his flight.

“Why do I say this? – Because there is going to be a lot of checks in the front of the terminal we have been told that some may activities and procedures will take place in front of the terminal.

“So air travelers are expected to leave home very early so that they can get to the airport on time,” she said.

According to Mrs Yakubu, the COVID-19 pandemic has brought a lot of changes to air travel and to ensure the safety of passengers and airport users, the way of doing things before has to change.

The pandemic will make people cut down on non-essentials and lead to low demand of air travel, she said.

Mrs Yakubu restated that social distancing would be observed at all the airports as well as temperature screening, wearing of face masks, disinfection of shoes and luggage of passengers regardless of personalities.

She said: “There will be floor markings indicating where each passenger will wait on the queue, arriving passengers will also be subjected to temperature screening, physical distancing too will be observed while passengers are waiting by the carousel to pick up their luggage.

“Passengers are expected to arrive the airport with their face masks on, their luggage and pairs of shoes to be disinfected.

“Passengers are expected to observe to observe social/physical distancing.

“Passengers will subject themselves to temperature screening and departure halls will be arranged in such a way that physical distancing too will be observed.”

The General Manager Customer Service/SERVICOM of FAAN, Mrs Ebele Okoye, said there will be a cut down on louts and loiters at the terminal building and outside, saying with COVID-19 fears, there would be no room for them.

In reducing contact, the days of opening people’s bag at the airport to search what is inside should be done away with. “I will urge all the airports to consider and make provision for different kinds of passengers, social distancing, adequate information and security and more importantly, social security.”

Mrs Okoye then advised passengers to buy their tickets online, check in online and pay for their trolleys online to reduce the hours they would have to spend carrying out these activities and also save themselves the trouble of coming to the airport to buy tickets.

The webinar was moderated by the WIA President, Mrs Rejoice Ndudinachi, and featured the Airport Manager South West Airports/Airport Manager, Murtala Mohammed International Airport, MMIA, Lagos, Mrs Victoria Shin-Aba, former Rector, Nigeria College of Aviation Technology, NCAT, Zaria and other women professionals in the industry.

Economy

Nipco, 11 Plc Crash OTC Securities Exchange by 4.76%

Published

24 minutes ago

06/12/2025

Adedapo Adesanya

By Adedapo Adesanya

Energy stocks influenced the 4.76 per cent loss recorded by the NASD Over-the-Counter (OTC) Securities Exchange on Friday, December 5.

The culprits were the duo of 11 Plc and Nipco Plc,with the former shedding N32.17 to end at N291.83 per share compared with the previous day’s N324.00 per share, and the latter down by N21.00 to sell at N195.00 per unit versus the previous session’s N216.00 per unit.

Consequently, the NASD Unlisted Security Index (NSI) slumped by 170.16 points to 3,401.37 points from 3,571.53 points and the market capitalisation lost N101.81 billion to close at N2.035 billion from the N2.136 trillion quoted in the preceding session.

The OTC securities exchange suffered the decline yesterday despite the share prices of three companies closing green.

Central Securities Clearing System (CSCS) Plc was up by N1.80 to close at N39.80 per share compared with Thursday’s price of N38.00 per share, Air Liquide Plc appreciated by N1.09 to N11.99 per unit from N10.90 per unit, and FrieslandCampina Wamco Nigeria Plc grew by 78 Kobo to N56.57 per share from N55.79 per share.

During the session, the volume of transactions rose by 6,885.3 per cent to 18.2 million units from 4.3 million units, the value of transactions ballooned by 10,301.7 per cent to N389.7 million from N347.2 million, but the number of deals declined by 29.7 per cent to 26 deals from 37 deals.

Infrastructure Credit Guarantee Company (InfraCredit) Plc ended the day as the most traded stock by value on a year-to-date basis with 5.8 billion units worth N16.4 billion, followed by Okitipupa Plc with 170.4 million units valued at N8.0 billion, and Air Liquide Plc with 507.5 million units worth N4.2 billion.

InfraCredit Plc also finished the day as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units worth N524.9 million.

Economy

Naira Depreciates to N1,450/$1 at Official Forex Market

Published

40 minutes ago

06/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The Naira depreciated further against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, December 5, as FX demand pressure mounts.

The Nigerian currency lost N2.60 or 0.18 per cent against the greenback to close at N1,450.43/$1 compared with the previous day’s N1,447.83/$1.

Equally, the domestic currency declined against the Pound Sterling in the official forex market during the session by N4.48 to trade at N1,935.45/£1, in contrast to Thursday’s closing price of N1,930.97/£1 and shrank against the Euro by 43 Kobo to end at N1,689.17/€1 versus the preceding session’s rate of N1,688.74/€1.

Similarly, the local currency performed badly against the US Dollar at the GTBank FX counter by N2 to close at N1,455/$1 versus Thursday’s N1,453/$1 but traded flat at the parallel market at N14.65/$1.

As the country gets into the festive period, pressure mounted on the local currency reflecting higher foreign payments and lower FX inflows.

However, there are expectations that the Nigerian currency will be stable, supported by interventions by to the Central Bank of Nigeria (CBN) in the face of steady dollar Demand and inflows from Detty December festivities that will give the Naira a boost after it depreciated mildly last month.

Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450/$1 next week, buoyed by improved FX interventions by the apex bank.

As for the crypto market, it was down yesterday due to profit-taking associated with year-end trading. However, the December 1-Year Consumer Inflation Expectation by the University of Michigan fell to 4.1 per cent from 4.5 per cent previously and 4.5 per cent expected. The 5-Year Consumer Inflation Expectation fell to 3.2 per cent from 3.4 per cent previously and 3.4 per cent expected.

With the dearth of official economic data of late, these private surveys have taken on a new level of significance and the market banks of them to make decisions.

Cardano (ADA) depreciated by 5.7 per cent to $0.4142, Dogecoin (DOGE) slid by 5.1 per cent to $0.1394, Ethereum (ETH) dropped by 3.9 per cent to $3,039.75, Solana (SOL) declined by 3.8 per cent to $133.24, and Litecoin (LTC) fell by 3.7 per cent to $80.59.

Further, Bitcoin (BTC) went down by 2.6 per cent to sell at $89,683.72, Binance Coin (BNB) slumped by 2.2 per cent to $883.59, and Ripple (XRP) shrank by 2.1 per cent to $2.04, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.

Economy

Oil Market Climbs on Federal Reserve Rate-Cut Signals, Supply Concerns

Published

59 minutes ago

06/12/2025

Adedapo Adesanya

By Adedapo Adesanya

The oil market was up on Friday on increasing expectations the US Federal Reserve will cut interest rates next week, which could boost economic growth and energy demand.

Brent futures rose by 49 cents or 0.8 per cent to $63.75 per barrel and the US West Texas Intermediate (WTI) futures expanded by 41 cents or 0.7 per cent to $60.08 per barrel.

Investors digested a US inflation report and recalibrated expectations for the Federal Reserve to reduce rates at its December 9-10 meeting.

US consumer spending increased moderately in September after three straight months of solid gains, suggesting a loss of momentum in the economy at the end of the third quarter as a lackluster labor market and the rising cost of living curbed demand.

Traders have been pricing in an 87 per cent chance that the US central bank will lower borrowing costs by 25 basis points next week, according to CME Group’s FedWatch Tool.

Investors also focused on news from Russia and Venezuela to determine whether oil supplies from the two sanctioned members of the Organisation of the Petroleum Exporting Countries and allies (OPEC+) will increase or decrease in the future.

The failure of US talks in Moscow to achieve any significant breakthrough over the war in Ukraine has helped to boost oil prices so far this week.

A loss of Venezuelan oil production in case of a US military intervention will materially impact global benchmark prices as the market will have to replace Venezuela’s heavy crude.

Venezuela is estimated to pump about 1.1 million barrels per day of crude oil at present, so if the US-Venezuela tension escalation into an invasion in the South American country, this volume of crude would be at risk.

Reuters reported that the Group of Seven countries and the European Union are in talks to replace a price cap on Russian oil exports with a full maritime services ban in a bid to reduce the oil revenue that helps finance Russia’s war in Ukraine.

Any deal that could lift sanctions on Russia, the world’s second-biggest crude producer after the US, could increase the amount of oil available to global markets, weakening prices.