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Airline Operators Seek FG’s Intervention Over Bank Charges

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Airline operators in Nige
ria have called on the federal government to introduce a policy that will enable banks charge single digit interest rate on airlines for aircraft acquisition and running costs.
Managing Director of Arik Air, Chris Ndulue said that the biggest challenge of running airline business in Nigeria is the high interest rate charged by banks for credit facilities.
Ndulue noted that the intervention has become necessary in order to save Nigerian airlines from going under.
He remarked that there must be a different arrangement for airlines because they operate with low margin profits and loans ought to be long term to enable them (airlines) pay back without rocking their finances.
“The biggest challenge of doing business in Nigeria is the high cost of securing credit facility and for a capital intensive industry like aviation, you have to invest a lot of money as equity as an investor and you also have to borrow a lot of money in order to be able to do the business,” Ndulu said.
According to the Managing Director, High cost of fund is a big issue and coupled with the fact that a lot of aircraft components and services are imported and over the years the trend we have seen is that the naira is constantly dwindling which eventually is a downward trend and that is why it is difficult for other airlines in the past to survive.
Nigerian airlines have very short life span of about 10 years according to the CEO of Belunjane KONSULE, Chris Aligbe.
Research conducted by Captain Mhammed Joji reveals that from 1983 to date, 49 airlines have collapsed, that is on the average of one and half per year.
In a letter to the president-elect, General Muhammed Buhari, Airline Operator of Nigeria (AON) had urged him to direct the Central Bank of Nigeria to lower the exchange rate for the airlines.
Speaking on the issue, Managing Director of an indigenous airline, Discovery Air, Abdusallami Muhammed said an upcoming airline in other parts of the world lease aircraft from international financiers and therefore does not spend huge resources on aircraft acquisition.
“It is very hard to operate an airline in this part of the world. If you are in Europe or in America and you want to set up an airline, there will be finance companies that will be willing to lease aeroplane owners are leasing companies but unfortunately in Nigeria there are bad reputation over the years of unpaid bills which has made the leasing companies reluctant to lease aeroplanes to Nigerian operators.
Muhammed explained why it is difficult for Nigerian airlines to make profit in their operations because Nigerian operators are forced to buy with cash and these aeroplanes are quite expensive.

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USTR Criticises Nigeria’s Import Ban On Agriculture, Others

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The United States Trade Representative (USTR) has criticised Nigeria’s import ban on 25 categories of goods, claiming that the restrictions limit market access for American exporters.
This is the effect of President Donald Trump’s tariffs introduction on goods entering the United States, with Nigeria facing a 14 per cent duty.
The USTR highlighted the impact of Nigeria’s import ban on various sectors, particularly agriculture, pharmaceuticals, beverages, and consumer goods.
The restrictions affect items such as beef, pork, poultry, fruit juices, medicaments, and alcoholic beverages, which the United States sees as significant barriers to trade.
The agency argues that these limitations reduce export opportunities for United States businesses and lead to lost revenue.
“Nigeria’s import ban on 25 different product categories impacts United States exporters, particularly in agriculture, pharmaceuticals, beverages, and consumer goods.
“Restrictions on items like beef, pork, poultry, fruit juices, medicaments, and spirits limit United States market access and reduce export opportunities.
“These policies create significant trade barriers that lead to lost revenue for United States businesses looking to expand in the Nigerian market”, the agency said .
In 2016, Nigeria implemented the ban on these 25 items as part of efforts to control imports and stimulate local production.
Some of the banned items include poultry, pork, refined vegetable oil, sugar, cocoa products, spaghetti, beer, and certain medicines.
On March 26, 2025, the  Federal Government also announced plans to halt solar panel imports to encourage local manufacturing as part of its push for clean energy.

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Expert Seeks Cooperative-Driven Investments In Agriculture 

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A leading agribusiness strategist and digital agriculture expert, Ayo Oluwa Okediji, has sought cooperative-driven investments in sustaining growth of poultry industry in Nigeria.
He said the poultry industry was at a defining moment and requires urgent structural reforms to secure its future and ensure long-term sustainability.
Speaking on the theme, “Strengthening Poultry Farming Through Cooperative Synergy and Strategic Investments”, at the recently concluded Oyo Mega Poultry Workshop 2025 in Ibadan, Okediji called on poultry farmers, cooperative leaders, financial institutions and policy makers to rethink the existing structure of the poultry sector.
He stressed the need to transition from fragmented, individually-driven operations to well-structured, cooperative-led enterprises capable of attracting sustainable financing and securing long-term viability.
He said, “Our poultry sector cannot thrive on individual effort alone. We need to organise ourselves into cooperative clusters, build strong governance systems and position ourselves to attract the level of investment needed to sustain this industry beyond this generation.”
Drawing on lessons from successful global cooperative models such as Rabobank in the Netherlands and Landus Cooperative in the United States, Okediji introduced the FarmClusters Poultry Model, a locally adapted solution developed by Agribusiness Dynamics Technology Limited (AgDyna), a subsidiary of AgroInfoTech Africa.
According to him, the model is currently being piloted in Oyo State in partnership with PANOY Agribusiness Limited and local poultry cooperatives.

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NACCIMA Proposes Hybrid Oil Palm Seedlings For Farmers

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The Rivers State Representative of the Nigeria Chambers of Commerce, Mines, Industries and Agriculture (NACCIMA), Mr. Erasmus Chukwundah, has urged palm oil farmers to consider hybrid seedlings for planting, if they must break even in palm oil business.
Chukwundah said this recently at the Free Oil Palm Business Climate Smart Best Management Practice/Assistance Training organized by Partnership Initiative In Niger Delta (PIND) for Palm Oil Farmers in Elele, Ikwerre Local Government Area.
The Rivers representative said until palm oil farmers begin to consider such hybrid oil palm seedlings, they may not meet up with the daily increasing demand of palm oil in the market.
According to him, the seedlings produce up to 30 bunches at once that ripen same time.
He said PIND decided to partner with Oil Palm Growers Association of Nigeria (OPGAN) to ensure that the message was received by the targeted audience.
According to him, palm oil remained a popular choice of industry operators as it could be converted to many other products such as vegetable cooking oil.
He also noted that products such as motor tyers, marine ropes and others are now gotten from the palm tree.
Chukwundah, who is the immediate past Director-General of Port Harcourt Chamber of Commerce, Mines, Industries, and Agriculture (PHCCIMA), further warned against use of unrecommended fertilisers in growing oil palms.
He noted that such practices could limit its export value or chances as the foreign marketers have a way of detecting such .
He reiterated the need for organic fertilizers, including poultry droppings, to enable them have a natural palm oil.
“People must reduce physical contact with palm oil production. That is why we are campaigning for hydrolic oil mills. The foreign markets are no longer interested in crude method of palm oil production”, he said.
Meanwhile, one of the farmers, Sonny Didia, who appreciated Chukwundah’s commitment towards the concern of farmers, appealed for an urgent need for loan opportunity with low interest rate in order to enable them beat the target.

King Onunwor

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