Business
Nigerian airlines can’t survive current economic crisis – Fairfax Africa boss alerts
Nigerian airlines can’t survive current economic crisis – Fairfax Africa boss alerts
The Fairfax Africa Fund, backers of the ill-fated national carrier, Nigeria Air, has issued a stark forecast, predicting the collapse of all domestic airlines currently operating in Nigeria amidst the country’s worsening economic crisis. According to Zemedeneh Negatu, Global Chairman of Fairfax Africa Fund, only one airline among Nigeria’s domestic carriers has a chance of weathering the economic storm.
Negatu’s foreboding projection follows a statement by Prof. Obiora Okonkwo, Chairman of United Nigeria Airlines, in which he described Nigeria’s aviation sector as being on “life support.”
Addressing Okonkwo’s concerns, Negatu expressed that the current state of domestic airlines is dire, insisting that no amount of government bailouts—no matter how generous—could save the majority of them from inevitable collapse.
“None of Nigeria’s airlines operating today, except one, will survive even if they were to be given tens of millions of dollars in government (taxpayer) bailouts in perpetuity,” Negatu asserted, without elaborating on the specific reasons behind this grim outlook.
However, the Fairfax chairman did not stop at predictions.
He leveled serious accusations against two leading Nigerian airlines—Air Peace and United Nigeria Airlines—alleging that they had orchestrated the failure of Nigeria Air through legal actions spearheaded by the Airline Operators of Nigeria (AON). Negatu claimed that Nigeria Air would have been a lifeline for the industry, potentially stabilising it and attracting significant foreign investment, but that these efforts were thwarted by what he described as self-serving interests masked as patriotism.
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“Promoting self-interest under the guise of ‘patriotism’ is not a viable long-term business strategy,” Negatu declared. “The efforts by United Nigeria and Air Peace to block a substantial Foreign Direct Investment (FDI) into Nigeria, including significant American investment, will deter others from considering the much-needed FDI in the sector.”
Negatu’s comments come in the wake of a landmark judgment on August 5, 2024, by Justice Lewis Allagoa of the Federal High Court in Lagos. The court ruled the sale of shares in Nigeria Air to Ethiopian Airlines as illegal, citing multiple violations of existing laws, including the Companies and Allied Matters Act and Securities and Exchange Commission regulations. The court invalidated the entire bidding process, revoked Nigeria Air’s Air Transport License, and permanently barred the former Minister of Aviation, Hadi Sirika, and Ethiopian Airlines from further involvement in the project.
Reacting to Negatu’s dire forecast and allegations, Prof. Obiora Okonkwo, spokesperson for the Airline Operators of Nigeria (AON), dismissed the claims as misguided. He pointed out that the harsh economic conditions affecting the aviation sector are a reality everyone is grappling with and not a result of Fairfax’s predictions.
“It doesn’t take a soothsayer to know that the economic environment in Nigeria is harsh and doesn’t only affect the aviation sector,” Okonkwo told Daily Sun.
He added: “If anything happens to airline operators in Nigeria, it won’t be because of Negatu’s prediction but due to the broader economic environment. The survival of Nigeria’s aviation sector so far is because the ‘evil’ intentions of Ethiopian Airlines and their collaborators under the guise of Nigeria Air failed. If it had succeeded, it would have sent the aviation industry to an early grave.”
On the accusation that Air Peace and United Nigeria spearheaded the downfall of Nigeria Air, Okonkwo was emphatic in his defense. He acknowledged that both he and Allen Onyema, Chairman of Air Peace, are indeed members of the AON, the body that took the federal government and Ethiopian Airlines to court, effectively safeguarding the aviation sector from what he described as a catastrophic plan.
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“Ethiopian Airlines had the opportunity in court to present evidence of their investment, and if they had done so, the outcome—which permanently banned them from owning shares—would have been different,” Okonkwo argued.
He continued: “We can understand Negatu’s pain because from being a transaction advisor, he was to get three percent shares from Nigeria Air for doing nothing and also be the only person to do all the procurement. He is a cry baby and if he says that Air Peace and United Nigeria are the ring leaders, then we are very proud to be part of the AON which saved Nigeria from their dubious transactions. We consider ourselves heroes because they couldn’t contradict any accusations that the AON made against them in court which are that the transaction is dubious and they just wanted monopoly which would have drained our economy.
“The then administration signed that the government will indemnify ET from every debt they would have accrued. In the agreement, ET wasn’t supposed to invest money to buy aircraft on behalf of the partnership. The airline would continue to lease to the partnership on wet lease, so the money they would have been indemnified against would have been in billions of dollars to buy aircraft for ET, which they would in turn, lease to Nigeria. ET and their Nigerian dubious collaborators would have been the only ones profiting. There would have been nothing for Nigerians to gain,” Okonkwo said.
In a rapidly-changing landscape, the battle for the soul of Nigeria’s aviation industry remains fierce, with accusations and counter-accusations flying between stakeholders. As the dust settles on the Nigeria Air debacle, the future of the country’s aviation sector hangs in the balance, clouded by economic uncertainty and the specter of past controversies.
Nigerian airlines can’t survive current economic crisis – Fairfax Africa boss alerts
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Auto
26th Abuja Motor Fair: NADDC, BKG Set November 10 Date for Auto Industry Show
26th Abuja Motor Fair: NADDC, BGK Set November 10 Date for Auto Industry Showcase
The National Automotive Design and Development Council and BKG Exhibitions Ltd have unveiled plans for the 26th Abuja International Motor Fair, scheduled to hold from November 10 to 13, 2026, at Eagle Square, Abuja.
The four-day event is expected to bring together major players across the automotive value chain, such as vehicle manufacturers and assemblers, component producers, financial institutions, technology firms, transport operators, logistics companies, development partners, investors and government agencies.
A three-day conference will also feature prominently at the fair, with the theme, “Driving Nigeria’s Automotive Transformation: Policy, Production, and Prosperity.”
A statement on Friday by BKG Exhibitions said the conference would examine key issues shaping the development of Nigeria’s automotive industry, with speakers drawn from various sectors of the industry and related fields.
Chairman of the Organising Committee and Managing Director of BKG Exhibitions, Mr Ifeanyi Agwu, said the conference would feature a keynote address by the Director-General of NADDC, Otunba Joseph Osanipin, alongside presentations and speeches by leading stakeholders in the automotive and transport sectors.
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According to him, the fair will provide participants with opportunities to engage industry leaders, investors, government officials and business executives while exploring emerging vehicles, technologies, products and investment opportunities.
Other highlights of the event are the Nigeria Automotive Excellence Awards Night, Abuja Automotive Road Show, Ultimate Test-Drive experience, exotic automobile displays and the Automotive and Future Mobility Arena.
Visitors will also have access to professional advice, technical papers and a showcase of some of Abuja’s finest cuisine.
The Abuja International Motor Fair has, over the years, evolved into one of Nigeria’s major automotive exhibitions and platforms for industry and policy dialogue.
The organisers said this year’s edition would further strengthen the platform’s role in promoting investment, innovation, local production and sustainable growth across Nigeria’s automotive sector.
26th Abuja Motor Fair: NADDC, BGK Set November 10 Date for Auto Industry Showcase
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Auto
Replace Fuel Subsidy With Vehicle Credit to Drive Mobility, Jobs,LCCI, Ilekuba tell FG
Replace Fuel Subsidy With Vehicle Credit to Drive Mobility, Jobs,LCCI, Ilekuba tell FG
Nigeria’s automotive stakeholders have called for an urgent shift from fuel subsidy to affordable vehicle financing, saying the new model could make vehicle ownership accessible to more Nigerians while driving local production, creating jobs and reducing dependence on imported automobiles.
The call was made on Thursday at the LCCI/National Automotive Design and Development Council Automobile Symposium, themed, “From Subsidy to Credit: Can Vehicle Financing Replace Fuel Subsidy as Nigeria’s Mobility Equalizer?”
Chairman of the LCCI Auto and Allied Sector Group, Dr Femi Eguaikhide, said affordable vehicle credit could restore access to mobility, improve productivity and create a stronger market for Nigeria’s automotive industry.
He said fuel subsidy had for decades effectively functioned as Nigeria’s mobility policy by helping to keep transportation relatively affordable for millions of Nigerians, including commercial drivers, teachers and small-business operators.
However, following its removal in May 2023, Eguaikhide said mobility costs had risen sharply, resulting in higher transport fares and increased prices of goods and services, with knock-on effects on productivity.
“Subsidy made fuel cheap, but cars remained expensive. So only the rich owned productive assets,” he said, arguing that vehicle credit could enable more Nigerians to acquire income-generating vehicles and repay loans from the proceeds.
Eguaikhide called for affordable, preferably single-digit interest rates and longer-tenor lease-to-own schemes for commercial operators using buses, tricycles and motorcycles.
“Can we create a ₦50,000/month plan for a keke driver?” he asked, urging financial institutions to develop financing products around borrowers’ earning capacity rather than conventional lending models.
He also advocated the use of vehicle telematics, tracking systems and cash-flow data to develop “mobility credit scores” that could help lenders assess the repayment capacity of commercial transport operators.
But Eguaikhide warned that vehicle financing must not become a fresh channel for importing used vehicles.
“If we use credit to import more Tokunbo, we’ve solved nothing,” he said, advocating financing for CNG conversions, locally assembled electric and hybrid vehicles, as well as mass-transit buses.
He summed up the proposed policy shift: “Subsidy gave us consumption. Credit can give us production.”
In a special address, Chairman and Chief Executive Officer of Cedric Masters Group, Chief (Sir) Anselm Ilekuba, also canvassed a fundamental shift towards vehicle financing, stressing that such a policy must simultaneously promote Nigeria’s automotive industrialisation.
Ilekuba, who was represented at the event by his Chief Finance Officer and Head of Accounts and Strategy, Christabel Mmesoma Ilekuba, decried the impact of high financing costs, short repayment periods and pressure on household incomes on vehicle ownership, despite strong demand for automobiles.
He urged the Federal Government to seriously consider the proposed National Automotive Bank being championed by NADDC, describing it as a specialised financing institution that could support consumers, vehicle assemblers and component manufacturers.
Ilekuba proposed longer-tenor financing for qualifying locally assembled vehicles, alongside industrial credit for manufacturers and funding for machinery, technology, certification and capacity expansion by component producers.
He also called for stronger localisation of automotive components, citing the proposed National Automotive Components Parts Gateway being developed by ALCMAN with Chinese partners.
According to him, the Automotive Bank and Components Gateway could create a cycle in which increased vehicle purchases stimulate local assembly, boost demand for locally produced components, expand factories and generate jobs, while reducing Nigeria’s exposure to foreign-exchange pressures.
Ilekuba said the success of vehicle financing should therefore not be measured merely by the number of loans disbursed, but also by growth in local vehicle assembly, component production, factory expansion, employment and foreign exchange conserved or earned.
“The old subsidy helped Nigerians consume mobility. The new approach should help Nigerians own mobility—and help Nigeria produce it,” he said.
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Auto
Jetour Set to Storm Abuja Show with Rugged Luxury T2
Jetour Set to Storm Abuja Show with Rugged Luxury T2
Abuja is set for a taste of rugged luxury as Jetour Nigeria puts its adventure-ready T2 SUV in the spotlight at the Jetour Experience Abuja from September 22 to 24, 2026, giving motorists in the Federal Capital Territory and neighbouring states an opportunity to test its blend of off-road capability, premium comfort and advanced technology.
The three-day showcase at Maha Event Centre, Area 8, Garki, will feature test drives, live demonstrations and direct interaction with Jetour product specialists, offering prospective buyers a closer look at the T2 and other models in the automaker’s growing Nigerian line-up.
Positioned as a premium SUV combining off-road capability with comfort and advanced technology, the Jetour T2 is designed for motorists seeking a vehicle capable of handling both city driving and challenging terrain.
Jetour Nigeria is distributing the T2 and other models via its seven accredited dealers — Elizade Nigeria Limited, New Era AutoVehicle Services Limited, Germaine Auto Centre, Kojo Motors, Mandilas Autos, R.T. Briscoe Motors and Tab Autos Limited.
The T 2 SUV is powered by a 2.0-litre turbocharged engine producing 254 horsepower and 390 Nm of torque. The engine is paired with a seven-speed dual-clutch transmission and BorgWarner sixth-generation intelligent four-wheel-drive system.
It also features five driving modes — Eco, Sport, Mud, Rock and X Smart — designed to provide improved adaptability across different road and terrain conditions.
Measuring 4,758mm in length, 2,006mm in width and 1,880mm in height, the SUV offers 220mm ground clearance and a 70-litre fuel tank, giving it the capability for extended journeys and off-road adventures.
Inside the cabin, the T2 combines rugged styling with modern comfort, featuring ergonomic seating and a 15.6-inch touchscreen infotainment system with Apple CarPlay, Android Auto and intelligent voice control.
Its safety and driver-assistance features include a 360-degree panoramic camera, rear parking sensors, Lane Departure Warning, Blind Spot Detection, Anti-lock Braking System and Emergency Brake Assist.
The SUV also comes with off-road crawl control as well as push-button and remote-start functions.
The Abuja experience follows Jetour Nigeria’s recent showcase in Lagos as the automaker continues to expand its presence and customer reach across the country.
With its combination of performance, technology, safety and luxury, the Jetour T2 is expected to attract motorists seeking an SUV capable of combining everyday urban mobility with adventure and off-road driving.
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