Thursday, February 2, 2023
No Result
View All Result
SUBSCRIBE
eNaira Online News
  • Home
  • eNaira
  • Capital Market
  • Business
  • Finance
  • Banking
  • PF
  • Companies
  • Crypto
  • Real Estates
  • Opinion
  • Home
  • eNaira
  • Capital Market
  • Business
  • Finance
  • Banking
  • PF
  • Companies
  • Crypto
  • Real Estates
  • Opinion
eNaira Online News
No Result
View All Result

Pressure on exchange rate from the aviation sector remains unabated

by e-Naira Online News
June 16, 2022
in Opinion
Reading Time: 2 mins read
A A
0
Home Opinion
Share on FacebookShare on Twitter


The Naira has remained under huge pressure against the greenback owing mainly to the import-dependent structure of the Nigerian economy. While Agriculture, Mining and Oil & Gas sectors attract the largest share of dollar inflows, other sectors such as Aviation remain import driven as the absence of an MRO facility in Nigeria continues to cost the country billions of dollars annually.

The Federal Airports Authority of Nigeria (FAAN) at its National Aviation Conference in Abuja on Tuesday, announced that Nigeria spent US$2.5bn (about N1.04tn at the official exchange rate of N415.63/$) in 2021 on Maintenance, Repair and Overhaul services of Nigerian aircraft and other facilities.

Meanwhile, the Federal Government, as part of its aviation roadmap, has been making efforts to establish an MRO facility in Nigeria. The Federal Ministry of Aviation recently acquired 12,000 hectares of land in Abuja for the development of the facility and other aviation projects. In his address at the conference, the Managing Director of FAAN, Rabiu Yadudu, noted that the project was expected to save FX spent on training human resources and flying machines for checks abroad and to earn foreign exchange when other countries can send their machines to the country for checks and also send their manpower for training in Nigeria.

Also speaking at the event, the Director-General, Nigerian Civil Aviation Authority, Musa Nuhu, noted that domestic flight operations in Nigeria had recovered from the effects of the COVID-19 pandemic on the sector. He, however, noted that the crash of the Naira against the United States dollar and the rise in global crude oil prices, which triggered an astronomical increase in the price of aviation fuel, have caused more trouble for the aviation sector lately.

For the Nigerian government, the dream to actualise the establishment of a Maintenance, Repair and Overhaul facility remains quite uncertain in the face of severe fiscal challenges. On 11 January 2021, the Federal Ministry of Aviation announced the Consortium of AJ Walters Aviation Limited, EgyptAir Maintenance & Engineering (EGME) and Glovesly ProProject Limited as the preferred bidder to establish the Maintenance, Repair and Overhaul Centre but we are not certain that much progress has been made since then.

However, 7Star Global Hangar, an indigenous firm, was in June 2021 granted. MRO certificate to operate, after investing c.US$10 million on equipment, tools and training. When operations begin, 7StarGlobal will be the first independent privately owned MRO in West and Central Africa. For Nigeria, the employment potentials from the MRO are enormous, and the benefit to the entire country is evident.


CSL Stockbrokers Limited, Lagos (CSLS) is a wholly owned subsidiary of FCMB Group Plc and is regulated by the Securities and Exchange Commission, Nigeria. CSLS is a member of the Nigerian Stock Exchange.

Related



Source link

Tags: aviationExchangePressureRateremainssectorunabated
Previous Post

Tinubu takes over Buhari’s Abuja campaign office

Next Post

Circle, The Company Behind The USDC Stablecoin, Announces Euro Coin

Related Posts

Opinion

Nigerian universities and the noise of advancing ideas

by e-Naira Online News
February 2, 2023
Opinion

Why 2023 polls should not be about the Emilokans

by e-Naira Online News
February 1, 2023
Opinion

How non-remittance of petrodollars affects the Nigerian economy

by e-Naira Online News
February 1, 2023
Opinion

Seyi Makinde’s second term bid

by e-Naira Online News
February 1, 2023
Opinion

The group that lost its way

by e-Naira Online News
January 31, 2023
Next Post

Circle, The Company Behind The USDC Stablecoin, Announces Euro Coin

Gains in Japaul Gold, Chams fail to lift Nigeria’s capital market as shareholders lose N196.3bn

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest

British American Tobacco earns alliance for Water Stew — Opinion — The Guardian Nigeria News – Nigeria and World News

January 29, 2023

Crypto Bank Custodia Denied Membership in US Federal Reserve System – Finance Bitcoin News

January 29, 2023

Vitafoam Plc advocates special FX window for manufacturing sector

January 28, 2023

NIMASA plots CVFF disbursement strategy with banks — Business — The Guardian Nigeria News – Nigeria and World News

January 29, 2023

NGX CEO says to strengthen partnerships, digital transformation, sustainability

January 26, 2023

CAP full year PBT rises by 79% to N3.1bn

January 27, 2023

UNCTAD, Islamic Development Bank unite over sustainable investment — Business — The Guardian Nigeria News – Nigeria and World News

January 29, 2023

Guinness grows half year gross profit by 16%

January 27, 2023

Tinubu distancing self from APC’s failure —Atiku’s aide

February 2, 2023

Why rail sector remains moribund, has no profit in 59 years | The Guardian Nigeria News

February 2, 2023

Nigerian universities and the noise of advancing ideas

February 2, 2023

Moody’s downgrades Nigerian banks’ rating

February 1, 2023

8 Black Financial Influencers You Ought to Follow

February 1, 2023

Federal Reserve Raises Benchmark Interest Rate by 0.25%, Disinflationary Process ‘Early,’ Says Powell  – Economics Bitcoin News

February 1, 2023

Geregu Power reports 51% drop in annual profit, proposes N20 billion dividend

February 1, 2023

MTN Declares N10 Per Share Dividend As Revenue Hits N2.0trn

February 1, 2023

Get the free newsletter

eNaira Online News

Get the latest news and follow the coverage of eNaira, Business & Financial, Stock Market, Analysis, and more from the trusted sources.

CATEGORIES

  • Banking
  • Business
  • Capital Market
  • Companies
  • Crypto
  • eNaira
  • Finance
  • Opinion
  • Personal Finance
  • Real estate
  • Uncategorized
No Result
View All Result

GET THE FREE NEWSLETTER

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 e-Naira Online News.
e-Naira Online News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • eNaira
  • Capital Market
  • Business
  • Finance
  • Banking
  • PF
  • Companies
  • Crypto
  • Real Estates
  • Opinion

Copyright © 2022 e-Naira Online News.
e-Naira Online News is not responsible for the content of external sites.