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Ongoing Renovation, Public Water Shortage Affecting Our Business—Capital Hotels

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capital hotels Sheraton Abuja Hotel

By Adedapo Adesanya

The management of Capital Hotels Plc, owners of Sheraton Abuja Hotel, has assured shareholders of the hospitality company that efforts would be made to create better value for them by ensuring a better market presence for the business despite the huge challenging operational environment.

Chairman of the interim board, Mr Anthony Idigbe, gave this assurance on Monday at the company’s ‘Facts Behind the Figure’ held at the Nigerian Stock Exchange (NSE) in Lagos. The team was also honoured yesterday by the NSE with the closing gong ceremony.

Addressing investment analysts at the event on Monday, including Business Post, Mr Idigbe said out of the 575 guest rooms the firm’s flagship hotel, Sheraton Abuja Hotel, has, 266 are presently undergoing renovation, but 97 rooms should be completed in the first quarter of 2020. He said these will include state-of-the-art club rooms and suites.

He express optimism that when these 97 rooms are released for customers’ use early next year, they should improve the “market share [of the company], enhance revenue [and] boost [its] presence.”

According to Mr Idigbe, “As you all know, Capital Hotels has been undergoing some transformation, we are happy we have a cohesive board for corporate governance and we have adopted many policies so as to be able to focus the components on the business.

“The result is that in the last two years, we have been able to declare profits and we hope to continue in that fashion. We have ambition to be the largest provider of leisure and business spaces in Nigeria.

“We are working very hard on refurbishing our rooms, banqueting and conferencing facilities. Also, we have returned our marketing plans and strategy and we hope to continue sustaining the current performance and even exceeding it.”

An Executive Director of Capital Hotels, Mr Robert Itawa, during his presentation, explained that the renovation was part of efforts to turnaround fortunes of the company, following decisions by the new management to commence an upgrade of some facilities in the hotel.

He assured investors that the company will improve its service delivery so as to result into more return of investment for shareholders of the hospitality firm, which was readmitted on the stock exchange in 2008.

However, Mr Itawa pointed out some factors having negative impact of the company’s numbers, which include a high operating cost. He explained that the organisation had to book the cost of implication of legacy staff schemes following an agreement with the unions. He added that the cost is expected to spread over a three-year period.

“For the past three years, this legacy cost alone is about N300 million. We have paid N110 million this year and from 2010 till date, cost associated with legacy system alone is N2.8 billion.

”That is why we have entered into negotiations with the union because we felt if we do not do something, the hotel will die and people will not get their money.

“In the next one year, we would have completed the payment of whatever that is outstanding. We have been paying massively every year since that period without fail and that is why we are experiencing industrial harmony,” Mr Itawa informed analysts present at the meeting.

Mentioning other challenges facing Capital Hotels, Mr Itawa said they include kidnapping, insurgency, institutional failure, poor transport system, power outage, public water shortage, integrity shortage amongst others.

Giving an outlook for the company in the future, he said that the firm may consider enhancing its topline by 60 percent mainly from the newly renovated 97 rooms.

While fielding questions from participants yesterday on the tenure of the present interim team, Chairman of the board, Mr Anthony Idigbe, assured that the board would ensure to complete its mandate within the time frame and not stay longer than necessary.

In his words, “I want to assure you that some of us will like to exit as quickly as possible and as soon as necessary. We continue to see it as a national service to perform this role.

“We are very proud of the work we have done so far, but be assured that we will not stay a minute longer than necessary.”

“We are happy that by the first quarter of next year, substantial progress would have been made in the decision process. The Securities and Exchange Commission (SEC) is going to ensure that rights of fair hearing are not breached. The process is very important. We are trying to get a solution that would be sustainable,” Mr Idigbe added.

SEC had on May 4, 2017, dissolved the former board of directors and appointed an interim board led by Mr Anthony Idigbe. The action was taken to protect investors of the company as well as integrity of the capital market and to restore the lost fortunes of the company in the shortest time possible.

The new interim board was mandated to oversee the conduct of a forensic investigation into the affairs of the company, considering the allegations of unauthorised sale of shares and diversion of proceeds from the sale of shares, amongst others.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Travel/Tourism

Airlines Face Fresh Turbulence Over Jet Fuel Scarcity

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Jet Fuel Scarcity

By Adedapo Adesanya

The National Association of Aircraft Pilots and Engineers (NAAPE) has revealed that Nigerian airlines are battling a severe jet fuel crisis, triggered by soaring jet fuel prices and supply shortages.

This is the latest blow to the aviation industry, which escaped an industrial action by airline operators over the price of jet fuel.

The latest development is increasing costs, disrupting flights and creating concerns about operational safety and sustainability.

According to Reuters, the persistent scarcity of jet fuel has triggered ⁠widespread operational challenges, including flight delays, route adjustments and extended crew duty periods, as airlines struggle to manage schedules amid rising costs.

According to the President of the association, Captain Bunmi Gindeh, the fuel shortages were pushing crews beyond planned limits, increasing fatigue and potentially eroding safety margins in an industry governed by strict rest regulations.

According to local carrier Rano Air, it revealed that jet fuel prices had more than quadrupled, as well as made some routes commercially unsustainable, forcing operational adjustments.

Other carriers have also begun rescheduling or cancelling flights and cutting unprofitable routes, industry ‌sources ⁠cited by Reuters said.

This comes at a difficult time for Nigeria’s aviation sector, already strained by foreign-exchange volatility, high aircraft maintenance costs, airport infrastructure strains and fuel price swings.

Airlines group, Airline Operators of Nigeria (AON), last month threatened to suspend operations over what they described as crippling and artificially inflated jet fuel prices.

Nigeria’s airline industry carries millions ⁠of passengers annually across an extensive domestic network and plays a critical role in connecting cities where road travel is often slow or insecure, making reliable air services economically and socially important.

The publication reported that the Nigerian Midstream ⁠and Downstream Petroleum Regulatory Authority (NMDPRA) has said fuel prices would not be capped, adding that any decisions on deregulated products would be formally communicated.

The crisis is worsening existing problems in Nigeria’s aviation sector, including forex instability, expensive aircraft maintenance and weak infrastructure.

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FG Unveils Leasing Initiative to Cut Airlines’ Fleet Acquisition Costs

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aviation workers

By Adedapo Adesanya

The federal government has approved the establishment of a national aircraft leasing company aimed at easing access to modern fleets for domestic airlines and transforming aviation financing in Nigeria.

The minister of aviation and aerospace development, Mr Festus Keyamo, announced the decision after a meeting of the Federal Executive Council (FEC), describing the move as a significant shift in how Nigerian carriers will acquire and finance aircraft.

Mr Keyamo said the proposed company would operate as a private-sector-driven Special Purpose Vehicle (SPV) with government backing.

“This initiative is a game-changer for our aviation industry. It eliminates the long-standing challenges Nigerian airlines face in accessing aircraft on competitive terms and positions the country as a hub for aviation financing in Africa,” he said.

According to the minister, the new platform will allow airlines to source aircraft through a centralised system, replacing the current model where operators negotiate individually with international lessors, often at higher costs and stricter terms.

Mr Keyamo noted that the government’s role would be largely supportive, providing sovereign guarantees to boost investor confidence, while private sector players drive the project.

“Through the Ministry of Finance Incorporated, the government will hold equity and earn revenue without direct financial investment. Our primary obligation is to provide the confidence investors need, especially in ensuring asset security,” he added.

The initiative, he said, has already begun attracting interest from both local and international investors, signalling early confidence in its viability.

Beyond supporting Nigerian carriers, the leasing company is also expected to extend services across West Africa and the broader continent, positioning Nigeria as a regional hub for aircraft leasing.

Airlines in Nigeria have come into focus in recent weeks due to renewed concerns over the financial sustainability of operators, which almost forced them to suspend operations last month. However, the Bola Tinubu-led government approved a 30 per cent relief on debts owed by local ‌airlines to aviation agencies and ordered talks involving fuel marketers, airlines, and ​regulators to reach a ​fair jet fuel price.

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Passengers to Enjoy Starlink Wi-Fi on Emirates’ Flagship A380

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Emirates A380 Starlink

By Aduragbemi Omiyale

Air travellers flying through Emirates will enjoy Starlink Wi-Fi onboard after the completion of the installation of the internet service on the company’s flagship A380.

The introduction of Starlink on the A380 builds on Emirates’ ongoing investment into redefining the customer journey, including one of the most ambitious retrofit programmes in aviation history.

The airline operator recently test-run this on a flight to Dubai, and it allowed passengers to enjoy seamless broadband while flying at 40,000 feet.

The Emirates A380 was one of the first commercial aircraft in the world to offer internet to its customers, with first-generation systems offering a total aircraft bandwidth of less than 1 Mbps. The installation and certification were accomplished in Newquay, UK.

With more A380s scheduled for accelerated installation throughout 2026, Emirates customers will soon enjoy a transformative leap in onboard connectivity with the ability to stream, game, browse, and work throughout their journey on personal devices.

The service will be complimentary for all customers, across all cabins, with easy sign-up and access. Future enhancements will include Live TV streaming over Starlink, initially on personal devices and later integrated into seatback screens.

So far, more than 650,000 Emirates customers have already flown on Starlink‑equipped flights, experiencing the benefits of next‑generation onboard connectivity firsthand.

As the world’s largest passenger aircraft, the A380 presents unique engineering challenges and opportunities. This industry-first Starlink configuration is designed to meet the demands of the A380’s ‘double-decker’ layout and high passenger capacity and is capable of delivering more than 2 Gbps of total aircraft bandwidth across the cabin.

Compared with the Emirates Boeing 777, the Emirates A380 features additional wireless access points and a third antenna to deliver an enhanced connectivity experience for its higher passenger capacity. Optimised inter‑deck integration supports a seamless Wi‑Fi experience, with customers able to enjoy high speeds depending on usage and device capability.

Starlink installations will soon begin at Emirates Engineering facilities in Dubai to accelerate deployment across the fleet.

Emirates is committed to bringing the best possible connectivity to its entire fleet at the earliest opportunity, with 25 Boeing 777-300ER aircraft already equipped with Starlink and the first A380 now joining service.

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