Nairaland Forum

The inflation history of Nigeria is interesting.

During Obasanjo's administration, was the figures for the inflation rate massaged /fiddled?

Was Nigeria calculatingits own inlfation rate or were the IMF / World bank doing it for us?

reason I ask because the inflation during Obasanjo's regime does not seem to truely reflect the actual price inflation that took place as a result of 500% devaluation of Naira.


i suspect IMF massaged the figure to justify Obj adoption of their economic policy

i need suggestions for a poll to add to this thread.

24th November 2003 BBC News
Obasanjo liquidates Nigeria Airways whilst retaining fleet of Presidential Jets for himself

After years of financial problems, the company went into liquidation in May with debts of $60m.

Property sell-off

Travel agencies and insurance firms were also featured in the report.

President Olusegun Obasanjo set up the inquiry in 2001 into the activities of the airline between 1983 and 1999.

The report was presented in May 2002 but the BBC's Sola Odunfa in Lagos says the president came under political pressure to reduce the scale of the sanctions or to protect some of those involved.

The commission investigated decisions by the top management, including the sale of Nigeria Airways House in London, reportedly for half of its value.

The inquiry recommended that some employees should be banned from public office for 10 years.

Transparency International, which campaigns against corruption, rates Nigeria as the second most corrupt country in the world after Bangladesh.

A new airline will be set up next month to replace Nigerian Airways, say reports.

Shame on Obasanjo

Obasanjo!!
Why?

This man Obj

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what a shame!

Obasanjo should never have mismanaged and closed our national pride and joy

Insider Weekly
Obasanjo's Liquidation of Nigeria Airways was criminal - Akinnola Ojo AKINNOLA OJO, apart from rising to become the general manager marketing of the defunct national carrier, the Nigeria Airways until the demise of the airline, he was also in charge of industry affairs in the airline, positions he handled well while the airline was in existence. Besides, Ojo who rose to become the chairman of Board of Airlines Representatives (BAR) an umbrella under which foreign airlines operate in the country, is presently a fellow of National Institute of Marketing of Nigeria. In this interview with CHUKWUEMEKE IWELUNMO, he spoke on several issues including how the former national carrier was liquidated and state of the aviation sector after the fall of the carrier. Excerpt.

On controversy over the actual number of aircraft that were actually left in the fleet of the former carrier when former President Olusegun Obasanjo left office.

On the number of aircraft in the fleet of Nigeria Airways, the airline had 23 aircraft as at 1980. Between 1982 and 1985, there was fleet rationalization whereby the then government withdrew seven F27 aircraft, Six F28 aircraft and Two B727 aircraft from service, making a total of fifteen. Five B7237 aircraft were wet leased and later returned to owners when five B737 and four A310 aircraft joined the fleet of the airline. Justification for the A310 was largely contested by technical experts. There were accidents, some of which lead to total loss. Maintenance issues kept the number of serviceable aircraft at about four as at 1998.


Do you think the federal government's decision to privatise Nigeria Airways was a wise decision if yes or no why?
The Federal Government did not privatize Nigeria Airways, rather the airline was liquidated. What the Government had with Virgin Atlantic to form Virgin Nigeria then was a partnership arrangement. On this again we should ask ourselves, was it ideal to form an airline in partnership with a carrier that maintain strong presence in our market. Virgin Atlantic could not have developed products that would compete with its own; the only result most likely was what we got.

What do you think government should have done with Nigeria Airways?

First and foremost, the maintenance and Engineering departments of the fallen carrier should have been made to stand as a maintenance company. There after the Government should have proceeded with process of restructuring and privatization of what remains of the airline. We have a system where an average worker was about 40 years, few aircraft, and huge debt and poor service delivery. Government as the owner should have taken over part of the asset and all the liabilities. The airlines could have been privatized in partnership with an airline from Asia and retain the name. Most of the debts at the end of the day were not verifiable, while the government could not have avoided paying the staff entitlements as they were civil servants. At the same time there were people owing the airline.

It is often said that the liquidation of the national carrier was responsible for the various problems bedevilling airline business in the country. Do you agree with this position?

The sudden shut down of the airline no doubt created a vacuum. Training and much needed professionals became inadequate after some time. It also became more difficult and expensive to provide maintenance services for domestic airlines using facilities and personnel of Nigeria Airways. On the positive side, the vacuum led to many airlines coming up and more capacity made available. The question however is, are the owners of the new airlines better off financially. Are they able to break into the major markets? This is yet to be seen as the level of passenger services provided up till now is considered to be inadequate. The private airlines many of which are already out of business could have come together and give the country two or three strong airlines.

Recently, a former BPE director general, accused former minister of aviation, Kema Chikwe of misleading Obasanjo to liquidate Nigeria Airways Limited (NAL). What is your impression?

Both the former Director General of BPE and then Minister of Aviation in no doubt are in better position to explain what happened and how all decisions on Nigeria Airways were arrived at. Government Policy direction and or agenda in whatever form could have been a factor on decision taken on the airline. One thing that however stood clear was that the ministerial committee set up by the then Minister of Aviation recommended privatization of the airline. However the way the final report was presented to Mr. President may be what the Director General of BPE was referring to.

What is your reaction to the allegation that NAL was ran aground by the staff through corrupt pactices?

On what led to the collapse of the airlines. These are not issues for speculations as there were Justice Obiora Nwazota panel reports and other various presentations at the National Assembly etc. Top level appointments were mostly based on political consideration and quota system which is normal in a Government establishment. In addition, the frequent change of Management/Board and policy makers was not helpful. On top, these aircraft were frequently withdrawn from the system for Government use and this affected schedule integrity and decline in patronage. When Governments owned airline worldwide in similar situation were recapitalized, privatized and allowed to run as a business entity, same was not for Nigeria Airways. It was all about how the business was run and not just the staff. Many domestic private airlines had also come and gone leaving debts behind. The question, what is it that the Nation is not getting right in commercial Aviation.

Is it true that Nigeria Airways was not set up as a profit making organisation?

There was nothing that suggested that the airline should not make profit. The fact however was that the purpose of setting it up then was to provide commercial transportation services and employment. In the process, the country was effectively linked and the Government depended on the airline aircraft for all official needs including emergencies and special assignments. All these affected the efficiency of the airline and its ability to generate revenue and make profit.

Do you belong to the school of thought that wants Nigeria Airways to be revived?

Things that made it Nigeria Airways are no more. The infrastructure was dismantled, critical global business contacts lost and company liquidated. In view of need to have a viable National carrier that can drive our economy within the current National Aviation Policy, there may be need for emergence of a strong National Airline. This may be achieved if two or more of existing airlines come together and form a fairly strong airline.

Former President Obasanjo had always blamed the collapse of the national carrier on the corrupt attitude of its workers, does this not contradict his refusal to release the white paper of the Justice Obiora Nwazota panel of enquiry on Nigeria Airways?

It all depends on the intentions of the Federal Government in setting up the Justice Nwazota probe panel. Also important was the brief presented to Mr. President on the report and other considerations. In any business, we have the owners represented by the board, the management and other staff cader. We also have the Minister directing the Managing Director and on many occasions contradicting the board and management views. The collapse was not just about the staff but lack of direction, system failure and political decisions overriding business ethics.

Since the demise of the national carrier, are you satisfied with happenings in the aviation industry?

Since the demise of Nigeria Airways, we have had quite a number of positive developments. The regulatory Authority, the Nigerian Civil Aviation Authority (NCAA) has been outstanding and other services provided have stepped up in various areas. The new airlines also have been able to provide more capacity on various routes. With all the achievements, we cannot say that one is satisfied when issues like, training, ageing workforce, cost of aviation fuel and access to finance and passenger services delivery constitute challenges to the local airlines. They need to cooperate with each other and foreign airlines in order to expand their network. To enable them do this effectively, domestic airlines need to have products and services that match what major airlines offer. They also need to hold necessary licenses and meet up with the requirements by NCAA, International Civil Aviation Organisation (ICAO). Membership of International Air Transport Association (IATA) is desirable.

In what way do you think federal government should assist the industry and do you support the call for more funding of the sector?

Any support from the Government either by way of policy and funding provided to the aviation sector especially when facilities, safety, training, and fuel cost are involved will go a long way in sustaining the industry. Also the issues listed above require funding to enable the industry drive other sectors of the economy including the much talk about tourism. In addition most of these items are long overdue for attention and the cost of aviation fuel as an oil producing state is of concern. We all talk of the Murtala Muhammed International Airport (MMIA) as a natural hub for the West Africa Sub Region; the airport has become inadequate and needs urgent expansion or a new terminal building.

At the global level, foreign airlines seem to have taken over the show in Nigeria, what is responsible for this?

It is not about the foreign airlines taking over the international routes, but that they offer services according to passengers’ desire. They provide long term contractual cargo and air travel services to many international and multinational organizations. They also have collaboration with hospitality organizations and thereby offer series of partnership incentives. The airlines also enjoy trade discounts based on volume of business and at the same time offer more destinations and frequencies which make travel plans flexible and cost saving. Maintenance facilities, aircraft manufacturers, even banks are all after them with incentives because of their high turnover. Above all, very many functionaries including Government officials patronize them either for cost saving, lack of patriotism or better service delivery.

Nowadays, airlines including domestic have violated the nation's expatriate quota policy through the influx of expatriates into the country at the detriment of professional indigenes which was not the case during the time of NAL, what do you think is responsible?

Aviation is a sector where the best is required most especially when it comes to safety especially on operational and maintenance issues. For every leased or newly purchased aircraft and not currently operated by the airline, foreign personnel may be required in order to meet those requirements. It is not only the regulatory authority the airlines need to satisfy, but also the insurance companies and other international airports requirement the aircraft shall operate into. The solution lies in human power development and better pay as industry is in need of trained and youthful professionals. The federal Government should still ensure that the policy on foreign worker employment be complied with. While granting exceptions, Government should continue to base such on plans for training and employment of Nigerians.

Do you support bail out for the domestic carriers?

Airlines like any other business sector should enjoy bail out. This was however denied Nigeria Airways many years back when many Nations bailed out their National Airlines. Though Airline business nowadays is private sector driven, the Government should encourage the Central Bank of Nigeria (CBN) to work out a low interest loan to enable them upgrade their services and fleet where necessary. The airlines on their part need to provide assurances that such loan will not be abused and also must have repayment plan acceptable to the banks. Government should also as matter of urgency address the high cost of aviation fuel and reduce aircraft holding time, due to VIP movements to bearable minimum to save cost on avoidable fuel consumption.

It has often been said that the major problem of the domestic carriers has to do with the too many frequencies granted to the foreign carriers hence, the call for the review of the Bilateral Air Services Agreements (BASA). What is your view on this?

Granting of frequencies and points of entry to foreign carriers is a reciprocal exchange. This has always been what private airlines were asking for in the past. The current aviation policy and other sub regional and regional aviation policies support liberalization. The domestic airlines should just team up and get bigger and better. Aviation is one of the volatiles sectors to invest in; hence only the best in terms of everything can sustain the business. Review of Air Services Agreement in most cases hardly achieved reduction in rights already granted. However additional frequencies and destinations granted to the one party may be reviewed as contained in the agreement based on the terms for granting such.
There seems not to be good synergy between the aviation and tourism sectors in Nigeria, as an expert what do you think is responsible for this?
The need for good synergy is not just between the Aviation and Tourism sectors. All sectors have to work closely with the tourism sector either by way of policy, participation, support, financing and deliberate provision of facilities that will promote it. The armed forces, police, community vigilante and individuals etc. should see themselves as part of much needed and friendly security network. The setting up of the National Economic Team should ensure that tourism is a major part of its agenda.

Every year, foreign airlines operating into the country cart away millions of dollars without ploughing back anything to the country. How do you react to this?

The Air Services Agreement in whatever form often make provision for the designated carriers to transfer their excess funds on reciprocal bases. It therefore depends on the level of local services foreign airlines subscribed to .Most airlines also have a centralized payment system in which case all revenue are usually sent to the central account. It is from there all payments either by check, credit card, or online is made as they have quite a number of credit facilities on investment, already the airline business remain fragile any other local investments will largely depend on returns, benefit and business environment. Since the foreign airlines generate high volume of traffic and revenue on the Nigeria Route, the most invisible way of reducing huge fund transfer is for Nigeria Airlines to work towards increase in participation and patronage. In addition Nigerians should commit their loyalty to them on routes where they exist.

The country's airports are grappling with infrastructural decay, what is the way out?

When we talk of infrastructural decay, it simply means facilities, meant for safety and comfort of passengers both enroute and during departure/arrival processes. The aviation agencies in the recent time have done quite a lot; hence, Nigeria was able to get the Category One status. More is still desired to be done in other to sustain this. We should continue to improve on the safety and security at the airports as well as in flight operations. The terminal building and the facilities need total overhaul or replacement. The MMIA Ikeja is particularly highly deficient and there must be deliberate Policy by the Government on these facilities. Aviation derives tourism and the airports create the first and last impression in the mind of international travelers. The runways, air traffic services contribute immensely to safety and efficiency of the operator, hence they also deserve attention.

The country's tourism potentials have not been marketed well enough and this is robbing the country fortunes. As a tourism expert what should government do?

The Country’s Tourism potentials is yet to be exploited. What we have been doing so far is testing of some of the products in the market place. The response which has been very great, looking at few festivals like Durba, Osun Oshogbo, Argungun, Obudu cattle ranch and Badagry etc. The experience during the last World Cup in South Africa where we have the Nigerian Village set up was another good example. The Nigeria tourism sector as of today is our hope for the future in term of employment and revenue. The federal Government needs to handle this as a serious business and focus more attention on the following among others: Tourism should form part the Economic Agenda if not yet while Safety and security across the country needs to be guaranteed.

Tourism is a vibrant, technical and interesting business, creating millions jobs with high revenue potential if properly managed. On top of it all, it must be properly marketed. Nigerians must be seen to be good people and reflect what make a great nation in deeds and utterances. All international and domestic events including business, sports, conference religious medical etc. have tourism as attraction and factors that determine hosting rights. Hence we now hear about marketing of cities. These are just highlights as tourism is a big business and cannot be addressed in a few lines

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Former NIGERIA AIRWAYS STAFF PROTEST ITS LIQUIDATION

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