Major International Business Headlines Brief::: 07 October 2022

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Major International Business Headlines Brief::: 07 October 2022 

 


 

 


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ü  Elon Musk: Twitter won't 'take yes for an answer'

ü  Adidas puts Kanye West Yeezy deal under review

ü  Samsung warns of 32% hit to profits on chip slump

ü  UK defies climate warnings with new oil and gas licences

ü  Homes face winter power cuts in worst-case scenario, says National Grid

ü  Risk of £50bn bond sale sparked emergency Bank of England move

ü  Maiden Pharmaceuticals: India investigates cough syrups after Gambia
deaths

ü  Avanti West Coast told to drastically improve rail services

ü  Nigeria: How Illegal Export Line Connecting High Sea Was Undetected for
Nine Years - NNPC

ü  Nigeria: Google Spends 20% of $1bn On African Projects, Begins First
Cloud Region

ü  Nigeria: Despite Economic Hardship, Airfares Hike, Nigeria Records High
Outbound Flights

ü  Nigeria: New Nigerian Carrier, ValueJet, Announces Inaugural Flight

ü  Nigeria: Travellers Groan As More Foreign Airlines Introduce Restrictions

ü  Nigeria: Domestic Airfares Rise 77 Percent, As Delta, Adamawa Travellers
Pay Highest - NBS

 


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Elon Musk: Twitter won't 'take yes for an answer'

Billionaire Elon Musk has said he aims to complete his purchase of Twitter
by the end of the month, but the company "will not take yes for an answer".

 

In a court filing, he said the social media platform had raised concerns
about the "theoretical possibility of a future failure to obtain debt
financing" to pay for the deal.

 

Twitter said it did not trust that the offer would come through.

 

Twitter sued Mr Musk in July after he tried to back out of buying the firm.

 

Mr Musk asked the court to put that legal fight on hold.

 

Mr Musk said litigation was no longer necessary, after he said in a surprise
move this week that he was prepared to go forward with the original takeover
plan, pending receipt of the financing and an end to the legal battle.

 

"There is no need for an expedited trial to order defendants to do what they
are already doing," Mr Musk's attorneys wrote in a filing.

 

"Yet, Twitter will not take yes for an answer. Astonishingly they have
insisted on proceeding with this litigation, recklessly putting the deal at
risk and gambling with their stockholders interests."

 

In its own filing for Delaware Chancery Court on Thursday, Twitter said it
was opposed to suspending litigation, calling such a move "an invitation to
further mischief and delay."

 

It said it did not trust Mr Musk's promises, noting that one bank helping to
finance the deal had testified this week that it had not received any notice
from Mr Musk about plans to move forward.

 

"Defendants can and should close next week," the company wrote. "Until
defendants commit to close as required, Twitter is entitled to its day in
court."

 

Mr Musk announced a plan to buy Twitter for $54.20 per share in April. But
he backed away from the deal just a few weeks later saying he was concerned
that spam accounts on the platform were higher than Twitter had claimed.

 

Twitter ultimately sued to force Mr Musk to complete the deal.

 

In its lawsuit, Twitter argued Mr Musk was worried about the price he had
agreed to pay, after a sharp downturn in the value of tech shares, including
Tesla, the electric car company he leads and is the base of much of his
wealth.

 

Mr Musk was due to be questioned this week as part of the preparation for
the trial, which was scheduled to begin 17 October. The trial is now
postponed to 28 October to allow a deal to close, according to a court
filing.

 

Shares in Twitter ended the day down more than 3%, amid investor doubts the
deal will go through.-BBC

 

 

Adidas puts Kanye West Yeezy deal under review

Adidas says it is reviewing its Yeezy partnership with Kanye West days after
he showed a "White Lives Matter" T-shirt design at Paris Fashion Week.

 

The company did not mention the controversy but said "successful
partnerships are rooted in mutual respect and shared values".

 

The rapper and fashion designer responded on Instagram, claiming the firm
"stole" his designs.

 

That post now appears to have been deleted.

 

Adidas told the BBC it had made the decision to put the partnership under
review after "repeated efforts to privately resolve the situation."

 

A spokesperson for the German sportswear company also said that the "Adidas
Yeezy partnership is one of the most successful collaborations in our
industry's history."

 

In his Instagram post, Mr West also used a strong expletive, adding "I AM
ADIDAS."

 

Earlier this week, he was criticised after he presented a collection at
Paris Fashion Week that included T-shirts with the slogan "White Lives
Matter".

 

The phrase Black Lives Matter, which represents opposition to racism and
police brutality, was widely used after George Floyd, an unarmed black man,
was killed by a police officer in Minneapolis in the summer of 2020.

 

Vogue's Gabriella Karefa-Johnson, who is global fashion editor-at-large at
the fashion magazine, was among those that criticised West over the
T-shirts, calling the move "hugely irresponsible."

 

In response, Mr West responded by lashing out at Ms Karefa-Johnson and
posted photographs of her mocking her appearance to his 17.9 million
followers.

 

In a statement, Vogue said it "stands with Gabriella Karefa-Johnson".

 

"She was personally targeted and bullied. It is unacceptable. Now, more than
ever, voices like hers are needed and in a private meeting with Ye today she
once again spoke her truth in a way she felt best, on her terms."

 

The almost decade-long partnership between Adidas and West has been strained
for some time.

 

At the centre of their collaboration is a hugely popular range of sneakers -
known as Yeezy - which cost hundreds of dollars, with new releases often
selling out within minutes.

 

In June, he accused Adidas of making a shoe that looked similar to the
distinctive Yeezy design, but was not part of their deal.

 

Adidas said it will continue to co-manage the partnership while the review
is underway.

 

The announcement from Adidas comes less than a month after West's lawyers
sent a letter to fashion chain Gap to say he would no longer work with the
firm.

 

He accused Gap of failing to honour terms of the deal, including by failing
to open standalone stores for his Yeezy fashion label.-BBC

 

 

 

Samsung warns of 32% hit to profits on chip slump

Technology giant Samsung has warned of a 32% slide in its profits as demand
for electronic devices and the memory chips that power them shrinks due to
the global economic slowdown.

 

The South Korean company estimates its quarterly operating profit was about
10.8tn won ($7.6bn; £6.9bn).

 

On Thursday, US chip maker Advanced Micro Devices (AMD) also said it was hit
by a fall in demand for computers.

 

It comes as people cut back on purchases as the cost of living rises.

 

Samsung's profits from its microprocessor making business suffered as the
global price of memory chips plunged due to weakening demand for consumer
electronics.

 

The estimates, which are for the three months to the end of September, mark
Samsung's first year-on-year decline in quarterly profits in almost three
years.

 

Samsung is due to release its earnings on 27 October.

 

Meanwhile, AMD's revenue estimates for the third quarter were about a $1bn
(£895.6m) less than previously forecast, signalling the slump in demand for
chips could be much worse than expected.

 

"The PC [personal computer] market weakened significantly in the quarter,"
AMD's chief executive Lisa Su said.

 

Weak economic conditions had driven demand lower than expected, she added.

 

AMD's shares fell by 4.5% in after-hours trading in New York.

 

"This is going to be a common theme for companies in the second half of 2022
due to weakening consumer demand," Neil Shah from market analysis firm
Counterpoint Research told the BBC.

 

Sales of electronic devices have been hit as rising inflation, higher
interest rates and the impact of Russia's invasion of Ukraine deter people
from making purchases.

 

This has led firms that buy memory chips, such as manufacturers of
smartphones and personal computers, to cut their purchases as they use up
their existing stocks.

 

Technology industry analysts have forecast that memory chip prices will
continue to plunge in the next three months as sales of smartphones continue
to slide, with demand not expected to recover until early next year.-BBC

 

 

 

UK defies climate warnings with new oil and gas licences

The UK has opened a new licensing round for companies to explore for oil and
gas in the North Sea.

 

Nearly 900 locations are being offered for exploration, with as many as 100
licences set to be awarded.

 

The decision is at odds with international climate scientists who say fossil
fuel projects should be closed down, not expanded.

 

They say there can be no new projects if there is to be a chance of keeping
global temperature rises under 1.5C.

 

Both the Intergovernmental Panel on Climate Change (IPCC), the global body
for climate science and the International Energy Agency (IEA) have expressed
such a view.

 

Climate change: New fossil fuel funding is 'delusional' says UN chief

Business Secretary Jacob Rees-Mogg says the new exploration will boost
energy security and support skilled jobs.

 

 

And supporters of new exploration insist it is compatible with the
government's legal commitment to reach net zero greenhouse gas emissions by
2050. They say the North Sea fossil fuel will replace imported fuel and so
have a lower carbon footprint in production and transportation.

 

Licences are being made available for 989 sectors of the North Sea - known
as blocks.

 

Business Secretary Jacob Rees-Mogg has said he would like "every last drop"
of oil to be extracted from the North Sea

"Putin's illegal invasion of Ukraine means it is now more important than
ever that we make the most of sovereign energy resources," Mr Rees-Mogg said
in a statement.

 

The licensing process will be fast-tracked in parts of the North Sea that
are near existing infrastructure and so have the potential to be developed
quickly, according to the North Sea Transition Authority. It says the
average time between discovery and first production is close to five years
but that gap is shrinking.

 

Both campaigners and the oil industry agree that the reserves will not be
large enough to have a significant impact on the prices consumers pay for
energy in the UK.

 

"This government's energy policy benefits fossil fuel companies and no-one
else," said Philip Evans, energy transition campaigner for Greenpeace UK.

 

"New oil and gas licences won't lower energy bills for struggling families
this winter or any winter soon nor provide energy security in the medium
term."

 

North Sea oil and gas production peaked about 20 years ago and since then
the UK has gone from producing more oil and gas than it needs, to importing
it from other countries.

 

Offshore Energies UK, which represents the oil and gas industry say there
could be as much as 15 billion barrels of oil left in the North Sea. It says
that new fields will be less polluting than their predecessors and in a
statement said they would be an environmental "bonus".

 

The decision to launch a licensing round follows the publication of the
government's "Climate Compatibility Checkpoint", which "aims to ensure" the
new exploration aligns with the UK's climate objectives.

 

The checkpoint criteria cover emissions from oil and gas production and how
those emissions compare internationally but take no account of the carbon
dioxide emitted when the oil and gas are burnt.-BBC

 

 

 

Homes face winter power cuts in worst-case scenario, says National Grid

British households could lose power for up to three hours at a time this
winter if gas supplies run extremely low, National Grid has warned.

 

The company said it was an "unlikely" scenario but added that supply
interruptions were a possibility if the energy crisis escalated.

 

Cuts would probably occur at peak times and customers would be warned in
advance.

 

But as a "base case" National Grid expects homes will face no problems.

 

Customers would be warned at least a day in advance about the power cuts,
which would occur at times of high demand, possibly in the morning, or more
likely between 4pm and 9pm.

 

They would be rotated so not all areas of the country were affected at the
same time.

 

When campaigning to be leader of the Conservative Party in August, Prime
Minister Liz Truss pledged that there would be no energy rationing this
winter.

 

Asked on Thursday if she could guarantee there would be no blackouts, the
Prime Minister said, "what we're clear about is that we do have a good
supply of energy in the UK, we're in a much better position than many other
countries, but of course there's always more we can do and that's why I'm
here working with our partners making sure we do have a secure energy supply
into the future".

 

The UK is heavily reliant on gas to produce electricity, with gas-fired
power stations generating more than 40% of the country's electricity. It
also imports electricity from Continental Europe.

 

National Grid - which keeps the lights on in England, Scotland and Wales -
said Russia's invasion of Ukraine had created "unprecedented turmoil and
volatility" in the energy markets.

 

Gas flows from Russia to Europe have been all but cut off, leaving countries
scrambling for alternative supplies.

 

Although Britain is far less reliant on Russian gas than mainland Europe, it
could still suffer knock-on effects from any shortfalls in supplies on the
continent, National Grid said.

 

In a report, it laid out three possible scenarios for what might happen this
winter.

 

Its central view remains that there will be enough energy to provide Britain
with similar levels of electricity to previous winters.

 

But it has modelled two more worrying scenarios which could arise.

 

In the first, the energy crisis in Europe would result in Britain not being
able to import electricity from France, Belgium or the Netherlands, although
power would still flow from Norway.

 

Without taking action, National Grid warned this situation could lead to
shortages.

 

 

However, it said it had struck deals with three power companies - EDF, Drax
and Uniper - to keep additional coal-fired power generators on standby in
case they are needed.

 

It will also launch a scheme from 1 November which incentivises businesses
and households to reduce their electricity use at key times:

 

Households with smart meters could be offered payments for cutting usage,
such as by avoiding using their washing machine or oven. Households could be
paid an estimated £10 per day.

Larger businesses will be paid for reducing demand, for example by shifting
their times of energy use or switching to batteries or generators in peak
times.

Some suppliers have raised doubts about the scheme, but National Grid is
encouraging them to work with customers to ensure the "highest levels of
participation".

 

With these measures in place, it thinks that supply interruptions would be
avoided. However, it said it had modelled a second, more extreme scenario,
in which the energy crisis in Europe escalates, resulting in not enough gas
being available in Britain.

 

In that event, distributors would be forced to cut off electricity to homes
and firms for up to three hours during the day, it said. The measure, not
used since the 1970s, would need the approval of the government and the
King.

 

"In the unlikely event we were in this situation, it would mean that some
customers could be without power for pre-defined periods during a day -
generally this is assumed to be for three-hour blocks," said National Grid.

 

The number of people being cut off from electricity will depend on how many
gas-power stations are forced to shut down because of a shortage of gas, it
added.

 

Hospitals and "priority businesses" would be protected from the cuts.
However, the Energy Networks Association said vulnerable individuals would
not necessarily be protected from the cuts.

 

National Grid said the industry would work with government to inform the
public about such measures including via Covid-style press conferences.

 

Three things to do as energy bills go up

A separate report by the National Grid, looking specifically at gas supplies
over the winter, also warned of a potential for a gas shortfall this winter
in the event of a cold snap or a cold winter, which could be overcome by
paying higher prices.

 

Most households saw their energy bills rise on 1 October, as the new energy
price guarantee came into effect. However, the rise was less than had
previously been expected after the government announced it would cap
domestic bills to prevent widespread hardship.

 

Overall, the grid operator concluded that this is likely to be "a
challenging winter".

 

Northern Ireland warning

The report from the National Grid relates to Great Britain. But there is
also a warning that Northern Ireland could face electricity blackouts in
2024 and 2025 unless action is taken.

 

The grid operator, System Operator NI (SONI), says the issue centres on
Kilroot power station and environmental permits which limit its operating
hours.

 

SONI says it is working with the Department for the Economy and the
regulator to address the issue.

 

Earlier this week, industry regulator Ofgem warned the UK is facing a
"significant risk" of gas shortages this winter, which could impact
electricity supplies.

 

It said there was a possibility the UK could enter a "gas supply emergency"
because of Russia's war with Ukraine.

 

Commenting on National Grid's forecasts, Ofgem said: "We have one of the
most reliable energy systems in the world and we are in a favourable
position.

 

"However, it is incumbent on a responsible and prudent energy sector to
ensure the right contingency measures are in place, which is why we are
working with the government, National Grid and key partners to protect
consumers, so that Great Britain is fully prepared for any challenges this
winter."

 

A government spokesperson said it was "confident in our plans to protect
households and businesses in the full range of scenarios this winter".

 

Industry group the CBI said although "there should be sufficient resources
to meet demand, the increased risk of energy shortages is worrying for
businesses, particularly energy intensive firms".

 

"Early forewarning of tight supplies is essential to help firms minimise
disruption to supply chains," said Tom Thackray, CBI programme director for
decarbonisation.

 

And charity Age UK said "contingency arrangements need to be planned for now
to ensure vulnerable households can be confident of maintaining their
electricity supply, come what may".

 

"We are thinking, for example, of older people with chronic health
conditions who have to remain warm, or others who dependent on electricity
to run essential equipment, including home dialysis machines," said Caroline
Abrahams, charity director at Age UK.-BBC

 

 

 

Risk of £50bn bond sale sparked emergency Bank of England move

The aftermath of the mini-budget could have seen a £50bn fire sale of UK
government bonds by funds connected to the pensions industry, the Bank of
England has said.

 

There was risk of a downward "spiral", it said, as increases in the cost of
government borrowing hit the funds.

 

The Bank feared these funds would be forced to sell their government debt
holdings, adding to the market turmoil.

 

The cost of borrowing saw record increases for two days, the Bank said.

 

The rise in borrowing costs over four days was "three times larger than any
other historical move".

 

The Bank stepped in to calm markets last week following fears that some
types of pension funds were at risk of collapse.

 

 

It pledged to buy up to £65bn of government bonds after the mini-budget
sparked turmoil on financial markets and the pound plunged.

 

Investors had demanded a much higher return for investing in government
bonds, causing some to halve in value.

 

The Bank said that the market in long-term loans to the government lasting
three decades, known as 30-year gilts, saw two days where the effective cost
of borrowing saw record increases, on its data which starts in 2000.

 

A letter from the Bank's deputy governor John Cunliffe to the Treasury
Select Committee contains a diagram depicting the trigger for the interest
rate shock as the "fiscal event", another name for the mini-budget, and that
the nature of the move in the UK was not seen in the US or eurozone.

 

Jonathan Haskell, a member of the Bank's Monetary Policy Committee, also
said in a speech on Thursday that "there was undoubtedly a UK-specific
factor" in the market turmoil.

 

This contradicts the claims made by some government supporters that the
mini-budget had nothing to do with last week's turmoil, which was instead
caused by "global factors".

 

The UK's independent economic forecaster, the Office for Budget
Responsibility (OBR), had offered to prepare a draft forecast in time for
the mini-budget, but the government did not take this up.

 

Mr Haskell added that the Bank uses OBR data in its own forecasts, and a
"sidelined" OBR "generates more uncertainty by worsening everyone's
information base".

 

The risk the Bank feared was that the funds connected to the pensions
industry, known as Liability Driven Investments, would become forced sellers
of their holdings of UK government debt, in an already troubled market.

 

A £50bn sale would represent four times the normal daily trade in the
market, and would have pushed the effective cost of borrowing, or yield,
even higher than 5%, leading to further problems. Before the mini-budget,
this yield had stood at about 3.7%.

 

While individual defined benefit pension funds were not at risk, because
they are guaranteed by the sponsoring company, it could have led to a wider
financial stability challenge.

 

The Bank of England decided to intervene in the market last Wednesday,
bringing down the effective borrowing cost from over 5% to under 4%.

 

As the Bank has eased off its interventions, on Thursday these costs had
risen notably again, as high as 4.4%. These rates feed into the costs of
long-term mortgages and business lending.

 

The Bank emergency intervention is due to end next week and it has so far
bought a fraction of the government bonds it could have, spending just
£3.7bn.

 

On Thursday, the Bank said it would wind down its bond buying in "a smooth
and orderly fashion" once it felt the market was functioning normally again.

 

The Bank also said it is working with the UK's pensions and financial
regulators to make sure that that investment strategies used by certain
types of pension schemes can withstand market volatility.-BBC

 

 

 

Maiden Pharmaceuticals: India investigates cough syrups after Gambia deaths

The Indian government has ordered an investigation into four cough syrups
after the World Health Organization (WHO) linked them to the deaths of 66
children in The Gambia.

 

The WHO said the children had died of kidney injuries. It said it found
"unacceptable" levels of toxins in the syrups made by Maiden
Pharmaceuticals.

 

It also advised regulators to stop sale of the products.

 

Maiden Pharmaceuticals has not yet commented.

 

The BBC has contacted the company for comment.

 

India's national drug regulator began investigating after the WHO contacted
it on 29 September, an Indian government statement said.

 

The regulator has also asked the WHO to share its report establishing the
"causal relation to death with the medical products in question", the
statement added.

 

The WHO findings, announced by Director-General Tedros Adhanom Ghebreyesus
on Wednesday, came after samples of each of the four cough syrups were
tested. It identified the medicines as Promethazine Oral Solution,
Kofexmalin Baby Cough Syrup, Makoff Baby Cough Syrup and Magrip N Cold
Syrup.

 

The health body said that laboratory analysis had confirmed that the syrups
contained unacceptable amounts of diethylene glycol and ethylene glycol,
which were toxic to humans and could prove fatal when consumed.

 

The WHO said that so far, the products have been identified in The Gambia,
but that they may have been distributed to other countries through informal
markets.

 

The Indian government, however, said it had exported these cough syrups
"only to The Gambia so far".

 

The health body said it was "conducting further investigation" with the firm
and Indian authorities.

 

"All batches of these products should be considered unsafe until they can be
analysed by the relevant National Regulatory Authorities," it added.

 

India produces a third of the world's medicines, mostly in the form of
generic drugs.

 

Home to some of the fastest growing pharmaceutical companies, the country is
known as the "world's pharmacy" and meets much of the medical needs of
African nations.

 

Maiden Pharmaceuticals, which is based in the northern state of Haryana,
exports its products to countries in Asia, Africa and Latin America,
according to Reuters.

 

Medical officers in The Gambia first raised the alarm in July after dozens
of children were diagnosed with serious kidney problems.

 

The Gambia's director of health services, Mustapha Bittaye, told Reuters
that the number of deaths had gone down in recent weeks and that the country
had banned the sale of the products.

 

"However, until recently, some of the syrups were still being sold in
private clinics and in hospitals," he was quoted as saying.-BBC

 

 

 

Avanti West Coast told to drastically improve rail services

Rail firm Avanti West Coast has been warned it needs to "drastically improve
services" after its contract to run the London to Glasgow line was extended
by just six months.

 

The decision means it will continue to run services until next April, the
Department for Transport said.

 

Avanti has come under fire after cutting the number of trains between London
and Manchester by a third in August.

 

It had apologised for the problems.

 

Transport Secretary Anne-Marie Trevelyan said services on Avanti have been
"unacceptable".

 

"While the company has taken positive steps to get more trains moving, it
must do more to deliver certainty of service to its passengers," she said.

 

 

"We have agreed a six-month extension to Avanti to assess whether it is
capable of running this crucial route to a standard passengers deserve and
expect."

 

The Department for Transport added that it would "consider Avanti's
performance" once the extension comes to an end on 1 April 2023.

 

FirstGroup, which owns Avanti West Coast in a joint venture with Italy's
Trenitalia, said it was "committed" to providing services that meet the
needs of customers and communities.

 

"Today's agreement allows our team at Avanti West Coast to sustain their
focus on delivering their robust plan to restore services to the levels that
passengers rightly expect," said Graham Sutherland, FirstGroup's chief
executive.

 

The operator, which runs services on the West Coast mainline, slashed its
timetable from seven trains per hour to a minimum of four per hour on 14
August and suspended ticket sales, blaming "severe staff shortages".

 

Avanti has blamed the shortages on train drivers suddenly stopping
volunteering for overtime. The train drivers' union, Aslef, has strongly
denied any accusations that there has been unofficial strike action.

 

The timetable cuts sparked widespread criticism and frustration.

 

In September, Avanti West Coast's managing director Phil Whittingham stepped
down amid an ongoing backlash over the reduced services.

 

Its director Barry Milsom also apologised "for the enormous frustration and
inconvenience".

 

Avanti has since increased its services. The company started running extra
trains on its key London-Manchester and London-Birmingham routes at the end
of September.

 

It also said services would be boosted again in December once nearly 100
drivers finish their training.-BBC

 

 

 

Nigeria: Domestic Airfares Rise 77 Percent, As Delta, Adamawa Travellers Pay
Highest - NBS

The average fare paid by air passengers for a specified single route journey
increased by N28,236 to N65,042, Year-on-Year, YoY, as at August 2022, the
National Bureau of Statistics, NBS, has said. This is a 77 per cent increase
from N36,805 paid by passengers in the corresponding period of August 2021.

 

The NBS made this disclosure in its transport fare watch report for August
2022.

 

The report also showed that air passengers flying to Delta and Adamawa
states paid the highest for tickets at N76,000 and N70,500 respectively for
specified routes on a single journey by August 2022.

 

 

According to the report, "The average fare paid by air passengers for
specified routes single journey, increased by 6.96 per cent on a
month-on-month basis from N60,811.76 in July 2022 to N65,041.89 in August
2022.

 

"On a year-on-year basis, the fare rose by 76.72 per cent from 36,805.41 in
August 2021."

 

On state profile analysis, the report stated that, "In August 2022, Delta
had the highest air transport fare (for specified routes single journey)
with N76,000.00, followed by Adamawa with N70,500,00, while Jigawa,
Nasarawa, Osun, Niger and Gombe recorded the least with N60,000.00 each."

 

In the distribution of transport fare categories by zone, the report stated
that the South-South recorded the highest air transport fare in August 2022
with N67,366.67, followed by the North-East with N66,950.00, while the
North-Central had the least with N62,235.71. Meanwhile, a survey on flight
tickets by Vanguard showed that passengers are now paying as much as
N200,000 for a return Lagos-Abuja ticket; while Lagos-Kano return is between
N150,000 and N200,000 depending on the time of booking.

 

Abuja-Kano flight on Max Air is between N74,000 and N100,000; while it is
between N74,000 and N80,000 on Air Peace. Also on Max Air, Abuja-Maiduguri
is N90,000 and Lagos-Kaduna on Azman Air for a Wednesday flight, N130,000. A
one-way Lagos-Abuja fare is now N80,000 and could be as high as N150,000 if
the travel date is in 24 hours.

 

Vanguard.

 

 

 

Nigeria: Travellers Groan As More Foreign Airlines Introduce Restrictions

Succour for travellers from Nigeria to foreign countries remains a far cry,
as more foreign airlines introduce restrictive measures on their operations.

 

Restrictions such as selling of ticket in dollars, stoppage of ticket
issuance originating outside Nigeria, reduction of inventories, among
others.

 

The development is coming against the backdrop of over $456 million trapped
funds belonging to foreign airlines.

 

Accordingly, most foreign airlines operating in the country have stopped
receiving payment for air tickets in naira, which contravenes the Nigerian
Civil Aviation Authority, NCAA, directives.

 

 

The NCAA, had threatened to sanction any airline selling in dollar, but to
date, no single airlineselling tickets in foreign currency have been
sanctioned.

 

Aviation World gathered that foreign airlines collect Naira for their
tickets to customers and exchange the same for foreign currencies for their
operations. But recently they said they have been unable to do so through
the official foreign exchange market due to the scarcity of foreign exchange
in Nigeria.

 

Following the development, the Federal Government promised to release about
$265 million of the over $456 million trapped funds to the airlines in
August 2022.

 

However, findings by Vanguard Aviation World showed that only a few airlines
have only received $133 million, representing 25 percent of the amount
promised to date.

 

 

More airlines have introduced restrictions - NANTA

 

In a chat with Vanguard's Aviation World, the National Association of
Nigeria Travel Agencies, NANTA, President, Susan Akporiaye, lamented that
the situation has gotten worse.

 

She said: "Some airlines that did not have any restrictions before now, have
introduced more restrictions, making it more difficult for both travellers
and travel agents.

 

"Qatar Airways, ASKY, Africa World Airlines, are the only airlines operating
in the country without restriction on ticket purchases, both in Nigeria and
their country.

 

"Ethiopian Airlines, along with a few other airlines have joined in placing
restrictions for ticketing. "Currently, we cannot issue tickets originating
outside Nigeria. Before now we could do Abuja to London but no more. "The
foreign airlines have reduced inventories too. For instance, if the aircraft
capacity is let's say 250, they do not open all for travel agents. It's
either they open half or just 100."

 

 

We didn't increase any of our charges - FAAN

 

While there were insinuations that the Federal Airports Authority of
Nigeria, FAAN, was responsible for the hike in foreign airlines ticket
fares, the Authority has debunked the allegation.

 

A recent speculation noted that the authority charges stifle flight
operations, as KLM, Lufthansa, Emirates, others increase airfares by 100
percent.

 

But in a swift reaction, FAAN's Acting General Manager, Corporate Affairs,
Faithful Hope-Ivbaze noted that with respect to reports making the rounds on
social media, the authority would like to inform passengers and the general
public that it did not increase any of its charges.

 

She said: "The charges being collected by FAAN are statutory, and therefore
cannot be increased without the knowledge of our esteemed passengers and
other airport users.

 

"While it is true that the cost of aviation fuel has gone astronomically
high and has adversely affected airline operators worldwide, culminating in
an increase in ticket fares, we want to reiterate that FAAN has not
increased its charges. "We are mindful of the challenges of our esteemed
passengers and other airport users as a result of the increase in airfares,
hence the need not to do so."

 

Local operators have capacity to fly Int'l routes - Obiora

 

Following the development, domestic operators have frowned over the recent
restrictions introduced by foreign airlines, as they maintained that they
cannot stand by to see foreign airlines exploiting travellers in the
country.

 

According to the Chairman of United Nigeria Airlines, Obiora Okonkwo, "Why
do foreign airlines charge so much? "In the aviation industry, one-hour
flight fuel consumption is the same, the only difference is maybe different
landing charges in London or Ghana, the rest is the same.

 

"I can assure you that if Air Peace goes to London today, Nigerians will fly
to London with an Economy ticket of N500,000. Today the price is about N2
million, why should we pay such if they are converting from N450 to $1?

 

"We owe Nigerians this explanation. However, whatever is going on, this is a
wake-up call that the local operators have to be supported as they have all
it takes to operate internationally.

 

"Emirates have over $5 billion in support from their government. When we ask
for support, it is not free, we pay back. American Airlines have equity of
over $60 billion and a debt profile of $70 billion and those debts all come
from government support.

 

"If the local airlines are supported, we can have the capacity that cannot
be threatened globally. "The easiest flight to operate is a long haul. Short
haul is even more difficult as it is stressful to both the aircraft and
cabin crew.

 

"It is even easier to go to London, aviation is the same globally, you are
audited by IOSA, IATA and that is, they prevented us and make us looks bad.
They are also aware that our quality and regulatory standards are high. We
get crews and captains coming to Nigeria and they fail our exams and we send
them back.

 

"Captains come from abroad and we reduce them to first officer seat because
they lack the quality. The only is that we are being outplayed politically,
and I do not think our embassies oversee have this understanding of the
politics of aviation."

 

But, Akporiaye stated that there is a lot involved for local airlines to fly
through the international space.

 

-Vanguard.

 

 

 

Nigeria: New Nigerian Carrier, ValueJet, Announces Inaugural Flight

ValueJet has announced that it would open its booking portal and would start
flight operations from Monday, October 10, 2022 with flights to Abuja, Port
Harcourt, Asaba and Jos daily and plans to increase routes and frequency
when its fourth and fifth aircraft arrive.

 

The airline made this known during its launch party, emphasising that it
will be a hybrid carrier offering both low-cost and legacy option to ensure
that 'everyone can fly'.

 

Chairman of ValueJet, Kunle Soname, who gave the opening remark at the event
said that the airline was no stranger to the industry and would base its
services on the need for right pricing.

 

 

"ValueJet is hardly a stranger in the industry and all operational insights
from previous partnerships have been applied in building our business plan
and propositions. We have identified a niche in the sector, the need for
fair pricing amidst the rising cost of commercial aviation to the average
customer compounded by tough economic realities for air operators," he said.

 

He talked about the airline's fleet stating that it consists of CRJ 900 and
stressed that with time, the airline would expand.

 

"Our fleet of modern and efficient CRJ 900 aircraft is ready, we can boast
of a resolute professional workforce which is among the best in the industry
to deliver end-to-end customer experience backed by modern technology.

 

"With a long-term vision and growth mindset, we have set our sights in the
coming years to expand beyond the Nigerian airspace. We are in a privileged
position despite existing economic headwinds. We are building a
cost-conscious business with an understanding of the sector and how Nigeria
is poised to play a key role in developing Africa's aviation by joining the
rest of the global players in regional and international markets," Soname
said.

 

Also speaking at the event, Chief Commercial Officer, Trevor Henry who spoke
on the airline's initial route network said ValueJet would start operating
from October 10, 2022 with Lagos- Abuja- Lagos twice daily; Lagos-Port
Harcourt-Lagos- Asaba and Lagos-Jos-Lagos.

 

He announced future expansion plans for Lagos-Abuja- Kano, Lagos- Abuja-
Yola and Lagos-Benin- Lagos.

 

-This Day.

 

 

 

Nigeria: Despite Economic Hardship, Airfares Hike, Nigeria Records High
Outbound Flights

Despite the outrageous fares that foreign airlines charge Nigerian
passengers, coupled with the economic hardship in the country, Nigeria still
records high outbound flights, THISDAY investigation has revealed.

 

Some foreign airlines operating in Nigeria, who confirmed the development,
said many citizens were still leaving the country adding that they recorded
full load-factor in their outbound flights in recent times.

 

THISDAY findings revealed that it had become difficult to get seats at short
notice from most of the foreign carriers that operate into Nigeria, even for
economy class, which price has risen to average of N1.5 million to N2
million, depending on the airline and destination.

 

 

Travel agents told THISDAY that there are higher load on the outbound
flights than inbound flights because many Nigerians who travelled do not
have the intention to return.

 

A travel blogger, Dozie Uzo, told THISDAY that last week his sister
travelled overseas with her children; that it was only her that had return
ticket; her children had one-way ticket because they did not intend to
return.

 

THISDAY learnt that many corporate organisations have lost their technical
and professional staff to the exodus because there is loss of confidence in
the nation's economy.

 

They added that the fears that the 2023 general elections might not provide
succour are also fuelling the exodus.

 

It was learnt that foreign carriers jerked up airfares because of their
inability to repatriate their funds from Nigeria as a result of scarcity of
foreign exchange.

 

 

Studies carried out recently by Business Travel Management (BTM), the all-
in- one business travel platform, explained that normally, foreign airlines
that serve Nigeria would sell their tickets in Naira and the Central Bank of
Nigeria (CBN) would convert that income to dollars for remittance back to
their headquarter locations.

 

However, currently, due to scarcity of foreign exchange in Nigeria, foreign
airlines have the equivalent of over $450 million sitting in Nigeria that
cannot be repatriated.

 

According to the studies, "The consequence of this for Nigerian travellers
is that it will lead to lower airline frequencies to, from, and within
Nigeria. Several international airlines such as Emirates, British Airways,
Air France/KLM, Lufthansa and others have reduced their flight frequencies
into Nigeria.

 

 

"This leads to higher fares since demand is outstripping supply on both
domestic and international routes. Fare quotations are rarely available when
the client calls back to book. BTM recommends that clients call (not email)
to book only when the journey is approved for purchase and instant
ticketing. As a result, airlines are adopting a very rigorous churning
policy against agents that hold seats without ticketing and issuing Agency
Debit Memos (ADMs) for those that do."

 

The report further stated: "Consequently, seats cannot be held and as it is
always the case, fares are not guaranteed until purchased. Aviation fuel is
in short supply in Nigeria since it all must be imported, and importation is
being hampered by the economic challenges described above. Fares fluctuate
daily and pricing currently seen and available is relatively expensive."

 

President of the National Association of Nigeria Travel Agencies (NANTA),
Susan Akporiaye, told THISDAY that there are more passengers on outbound
flights than inbound because many Nigerians are leaving the country and they
don't intend to return in the foreseeable future.

 

According to her, Nigerians pay for the outrageous tickets because they
don't have choices than to send their children back to school; some even
sell their assets, especially those who don't intend to come back.

 

"Those who are leaving the country permanently and those who have their
children abroad are the ones that can afford to buy the tickets, which are
very expensive. Those travelling on holidays are no more going due to the
expensive tickets, which is about N2 million for the economy class.

 

"We are hoping that this will end soon, I pray that this problem does not
linger till next year. It will definitely end this year. It is not as bad as
COVID-19 that was clouded in uncertainty. No one knew when it would end but,
by 2021 hope rose, especially in Africa that the pandemic would ease off. We
are not selling tickets like before but whatever profit you make inflation
will diminish the value," she said.

 

The immediate past NANTA President and the Group Managing Director,
Finchglow Holdings, Mr. Bankole Bernard, said: "What Nigeria is going
through now is brain drain because the Nigerian environment is no more
conducive. People are leaving for more favourable environment and some with
their entire family."

 

According to him, "Most of those moving are the middle class. The middle
class is the engine room of any country. The more they wait the more the
currency becomes lower. These people have been offered safer environment to
earn higher emoluments and some will allow you come with your family. I have
lost 20 staff to the exodus. They left for Canada. If you are paying
somebody N120, 000 the value of the money has slumped so it cannot buy what
it used to buy. We are import-oriented nation, what we are exporting is
insignificant compared to the volume of our imports. So there is so much
pressure on forex."

 

He said that airlines were guided by two factors in their pricing. One is
volume and the other is yield. In Nigeria they have created a scenario
whereby they will make profit if they airlift 100 passengers (volume) and
make the same profit if they airlift 20 passengers (yield) by increasing
prices.

 

He said that the airlines do this by increasing the fares; so the 20
passengers share the fares of the 100 passengers. This explains why some of
the airlines cut down their frequency to Nigeria but increased the fares by
over 100 per cent and they fly out of Nigeria with full load with the
outrageous fares.

 

THISDAY learnt that many travellers who wished to book flights, have since
discovered that many of the airlines were fully booked, and they had to
postpone their trip.

 

-This Day.

 

 

 

Nigeria: Google Spends 20% of $1bn On African Projects, Begins First Cloud
Region

One year after Google announced its five-year plan for African projects that
would gulp $1 billion, the technology company has said that it had already
spent over 20 per cent of the budget, which covers the establishment of its
first cloud region in Africa.

 

Managing Director, Google Africa, Nitin Gajria, who disclosed this during
the Google for Africa 2022 event, said Google had last year, committed $1
billion over five years to increase connectivity and invest in companies to
accelerate Africa's digital development, adding that this year, Google is
focusing on how it is fulfilling the pledge.

 

According to him, other African projects include the connectivity to more
people in Africa, with Equiano subsea cable now linked to Togo, Nigeria,
Namibia, and South Africa, and operations set to begin by the end of the
year; Voice typing support for nine additional African languages; A refresh
of Street View in Kenya, South Africa, and Senegal; The opening of Google's
new product development centre in Kenya, and the expansion of AI development
centre in Accra; Investments in entrepreneurship and technology, including a
$4 million Google for Startups Black Founders Fund to support 60 African
startups, among others.

 

 

Gajria said the new Google Cloud region would be established in South
Africa, being its first on the continent.

 

The new Cloud Region will help users, developers, businesses and educational
institutions across Africa to move more information and tools online,
improve access options for customers and in turn, create jobs. According to
research by AlphaBeta Economics, commissioned by Google Cloud, the South
Africa Cloud Region will contribute more than a cumulative $ 2.1 billion to
the country's GDP, and will support the creation of more than 40,000 jobs by
2030.

 

The Director of Google Cloud Africa, Niral Patel, said: "We believe in
growing an open and healthy ecosystem of technology solutions to support
Africa's digital transformation goals, which leads to more opportunities for
businesses. It is part of our company-wide ethos to respect the environment,
which is why we operate the cleanest cloud in the industry, supporting
sustainable digital transformation."

 

South Africa's Deputy Minister of Communications and Digital Technologies,
Philly Mapulane, said: "Our National Development Plan 2030 calls for
stimulating growth in the Information, Communication and Technology (ICT)
sector and innovation by driving public and private ICT investment,
especially in network upgrades and expansion."

 

Earlier this year, Google announced plans to open its first African product
development centre in Nairobi to develop and build better products for
Africans and the world.

 

Yesterday, Google announced the launch of voice typing support for nine more
African languages in Gboard, the Google keyboard.

 

To support African entrepreneurs in growing and developing their talent,
Google said it would continue to support African small businesses through
the Hustle Academy and Google Business Profiles, and to help job seekers
learn the skills they need through Developer Scholarships and Career
Certifications.

 

According to Gajria, Google is collaborating with governments, policymakers,
NGOs, Telcos, business leaders, creators and media to help accelerate
Africa's digital transformation.

 

-This Day.

 

 

 

Nigeria: How Illegal Export Line Connecting High Sea Was Undetected for Nine
Years - NNPC

In a shocking revelation, the Group Chief Executive Officer of the Nigerian
National Petroleum Company Limited (NNPC), Mallam Mele Kyari, has narrated
how an illegal oil pipeline connecting directly to the high sea was recently
discovered.

 

Kyari said the major oil export terminal that had its products diverted into
the sea had been operating undetected for nine years.

 

The four-kilometre or 2.5-mile connection from the Forcados export terminal,
which typically exports around 250,000 barrels per day (bpd) of oil, into
the sea was found during a clampdown on theft in the past six weeks, Kyari
said during a meeting with the Nigerian senate.

 

 

"Oil theft in the country has been going on for over 22 years but the
dimension and rate it assumed in recent times is unprecedented," Kyari told
the lawmakers.

 

"But in rising up to the highly disturbing challenge, NNPC, has in recent
time in collaboration with relevant security agencies clamped down on the
economic saboteurs.

 

"In the course of the clampdown within the last six weeks, 395 illegal
refineries have been deactivated, 274 reservoirs destroyed, 1,561 metal
tanks destroyed, 49 trucks seized.

 

"The most striking of all, is the four-kilometre illegal oil connection line
from Forcados Terminal into the sea which had been in operation undetected
for nine solid years," he added.

 

While thieves often tap land-based pipelines to siphon oil undetected, but
an illegal line in the ocean is highly unusual and suggests a more
sophisticated theft operation.

 

 

Forcados is operated by the Shell Petroleum Development Company (SPDC), a
local subsidiary of Shell.

 

Nigeria has been losing potential revenue from some 600,000 bpd of oil,
Kyari mostly as a result of shut-ins due to vandalism.

 

Crude oil exports fell to 972,000 bpd in August for the first time since at
least 1990 as a result, starving Nigeria of crucial cash.

 

Activities at the affected terminal have been stopped since a leak was found
from a sub-sea hose at the terminal on July 17.

 

Shell said this week that it expected loadings to resume in the second half
of October. Kyari, however puts it in a number of days.

 

Nigeria recently took a raft of measures to curtail the oil theft menace,
which so far appears to have defied all solutions.

 

A few of the measures include the renewed deployment of security personnel
in the Niger Delta and the real-time monitoring of activities around the
pipelines by the NNPC.

 

In addition, the national oil firm has introduced the whistle-blower
strategy as well as the handing over of a N4 billion monthly surveillance
contract to ex-militant, Government Ekpemupolo, popularly known as Tompolo.

 

The federal government has variously blamed massive oil theft, vandalism of
major assets, dilapidated infrastructure as well as declining upstream
investment for its inability to drill more of the commodity.

 

Last Tuesday, during a briefing on its audited financial report for 2021,
Kyari had said the all-important Trans Niger Pipeline (TNP) which had been
down for months would come online in the "next few days".

 

Kyari further told the lawmakers that Nigeria was in a 'calamitous'
situation over oil theft, and pipeline vandalism with its attendant low
production.

 

He explained that the NNPC had been carrying out aerial surveillance of the
affected areas and discovered "the economic saboteurs carrying out their
activities unchallenged and unperturbed."

 

Read the original article on This Day.

 

 

 

 

 

 

 

 

 

 

 

 

 


 


 


Invest Wisely!

Bulls n Bears 

 

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INVESTORS DIARY 2022

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


 

 

 

 

 


 

National Unity Day

 

December 22

 


 

Christmas Day

 

December 25

 


 

Boxing Day

 

December 26

 


Companies under Cautionary

 

 

 


CBZH

Meikles

Fidelity

 


TSL

FMHL

Turnall

 


GBH

ZBFH

GetBucks

 


Zeco

Lafarge

Zimre

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from sources believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and sourced from third parties.

 


 

 


(c) 2022 Web: <http://www.bullszimbabwe.com>  www.bullszimbabwe.com Email:
<mailto:info at bulls.co.zw> info at bulls.co.zw Tel: +263 4 2927658 Cell: +263 77
344 1674

 


 

 

 

 

 

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