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Arik: Senator Okon Wants AMCON Probed

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AMCON Okon

Elder-Statesman Senator Aniete Okon has called on the presidency to probe the role of the Assets Management Company of Nigeria, AMCON in the affairs of Arik Air following his claims that the takeover of the airline has worsened the financial state of the company.

Senator Okon who was vice-chairman of the airline before the takeover in an interview accused AMCON of spinning lies to defend the deterioration of the company’s asset quality.

While noting that the airline had as many as 15 serviceable aircraft at the time AMCON took over, Senator Okon said that only four were now in the service of the airline and lamented that one of the aircraft was  about being ceded to start the proposed new national airline.

Affirming that the airline was not in any crisis out of the normal operations, he, however, regretted foreign exchange constraints which he said affected the company just as other companies. Okon, said that even at then that the company made more than enough provisions for in naira provisions.

Okon while calling on the presidency to protect the original owners of the airline from the alleged malice of AMCON spoke in reaction to the assertions of the receiver manager, Mr. K. Omokhide in a national newspaper.

He said:

“Arik was in operation before Amcon forcefully took over the Airline. In fact on the day Amcon invaded the Arik head office in Lagos, with two lorry loads of mobile police, there were 15 serviceable aircraft in constant operation.

“In fact, on that day the Lagos-London flight departed for London. The airline operated about 69 flights on that day due to the harmattan haze. Normally the company operated well over 100 flights daily.  Amcon continued operating the airline’s typical schedule for roughly two weeks before shutting down long-haul services.

Noting the constraints imposed by foreign exchange scarcity which he said were not the making of the airline, Okon said:

“It should also be noted that the company had like other companies in Nigeria had difficulties in accessing Foreign Exchange from Central Bank of Nigeria (CBN) to meet its operational needs for spare parts and other foreign obligations. The then Management of the airline approached the CBN to plead for priority assistance to access FOREX without success. It should be noted that, from roughly the third quarter of 2015, Nigeria started experiencing shortage of FOREX and was in recession during 2016. There was no way the company would have gone under.

“In fact, Amcon took over Arik with the misconception that Arik was a CASH COW. No wonder that out of the 15 serviceable aircraft Amcon took over, only 4 (FOUR) are now in service as at today 31st March 2021. It is surprising that Amcon has to wet lease an aircraft from Mongolia due to shortage of serviceable aircraft caused by its inability to maintain the fleet.

“It is most untrue that creditors were closing in on the airline. The airline exited the facility it took from U.S. Exim Bank and paid off EDC (Export Development of Canada) for the first set of aircraft she provided facilities for.”

While Senator Okon observed that Arik was meeting its obligations to both foreign and domestic financial facilitators, he traced how the company entered into the grasp of AMCON through a new Central Bank of Nigeria, CBN, policy.

He said:

“Arik’s unfortunate journey into Amcon was NOT due to her failure to meet her obligations but was due to change of policy by the Central Bank of Nigeria at that time (i.e., 2010/2011)

“When the transaction of the A340-500 commenced in 2008, the official exchange rate was 1 USD = N150 but Arik made all deductions by the banks at N180 = 1 US Dollars; thus making provision for exchange rate fluctuations. Eventually this was officially increased to N360 = 1 USD.

“It is clearly obvious that with the change of policy by CBN and changing the facility to a local loan at high interest rate with depreciating value of local currency, there was no way Arik could meet such payment schedule demanded by Amcon and, at the same time, meet previously unchanged obligations of foreign financial institutions. Suffice it to state that Arik had to meet other obligations with other financiers such as U.S. Exim, EDC and Afrexim, with such harsh economic climate.

“Arik had several meetings with the then Management of Amcon who, after several meetings with the above financial institutions without Arik’s knowledge, agreed to give a pause to enable the Airline to finish payments to the foreign financial institutions.  This was achieved in December 2016 and Amcon took over on February 9th 2017.”

“Suffice it to state that all was well until about the fourth quarter of 2015 when there was a scarcity of FOREX. The remitting banks claimed they were not getting sufficient FX from CBN. Meanwhile the financial institutions insisted that even though they had verifiable evidence of the Naira with the local banks, Arik’s obligations could only be met when funds are received in US Dollars.

“Arik Management met with CBN to explain the situation and the consequences of not obtaining FX. Suffice it to state that CBN gave approval for the transaction before the financial institution signed off on these transactions. Our pleas to CBN were unsuccessful. To avoid a default, the Management had to dip into its operational funds to purchase shortfall FX  funds from the parallel market to pay the Financial Institutions.”

Also noting the foreign exchange issues with the insurance of the aircraft, he said:

“Arik aircraft were insured with Lloyds of UK with Willis UK as it Brookers. This was the condition of the financiers. Arik paid the local insurance brokers but the broker had difficulties in sourcing FX from CBN in 2016.  Every effort was made by Arik to assist the local Insurance Broker to obtain FX at CBN.

“Thus insurance premium paid by Arik was with the broker who could not obtain FX.  Consequently, Willis UK refused to renew. This caused a shut down and with intervention of the then Minister of Finance, CBN made the FX available to the Broker. Thus it could be seen that Arik’s problem was lack of support by the state.

“The two A340-500 were brand new aircraft purchased directly from Airbus France. It is most unfortunate for Amcon to state the aircraft were obsolete. It should be noted that two former Nigerian Presidents travelled with the aircraft to New York and London; even a former CBN governor travelled with the aircraft. They all commended the quality of the aircraft and the service provided. Amcon does not need to give Arik a bad name to justify its actions,” Senator Okon said.

He also debunked the claim that the former management procured obsolete aircraft, saying:

“Contrary to Amcon’s view that the newly purchased A340-500 purchased by Arik in 2008/2009 were not commercially viable, a larger version, A340-600, is being operated by a foreign Airline from London to Lagos daily since she started operations into Nigeria from 2005. Every airline runs on agreed credit with its suppliers and service providers. Arik faced serious challenges due to lack of support on its FX requirement.  Suffice it to state that the FX required by Arik is far less than 5% of what the CBN makes available to foreign airlines to remit out of the country.”

Senator Okon also debunked the claim by AMCON that it gave Arik and injected N375 billion into the airline.

“Amcon says it has injected well over N375 billion (that’s equivalent to roughly USD 1 billion! Haba Amcon!) in the airline since its forceful takeover February 9th 2017. This is a cause for concern. What exactly were the funds used for?

“ Amcon took over 15 serviceable aircraft and today has only four serviceable aircraft. Amcon had to lease an aircraft from Mongolia and used the services of Value Jet to beef up its operations.  In addition, spare parts and tools valued at well over USD 120 million in its stores – i.e. at the time Amcon took over the airline – have been depleted and not replenished.”

The elder-statesman also refuted the claims that the former management was short in training saying that it was the leader in training among local airlines just as he accused the new management of failing to render accounts of its stewardship.

“Since Amcon’s takeover of the company, she has refused to render account to its shareholders. Rather the company is using Arik to learn the ropes and misinform the government. The Presidency should set up a panel to probe the Arik takeover by Amcon and inquire into its activities since takeover.

“Amcon has misinformed the government to the benefits of its personnel. It is interesting to note that the current Receiver Manager is an employee of Amcon. Thus his self-serving statements are meant to defend Amcon’s mismanagement of the airline.

“Amcon is taking some aircraft from Arik to start NG Eagle. These aircraft belong to Arik and are supposed to be used to generate revenue for Arik to defray the supposed debt.

“If the aircraft have been working for Amcon for the past four years, and the loan has not been defrayed but growing, it is clear that setting up another airline is a wholly wasteful adventure that will neither resolve the Arik issue nor make the new Airline viable is in the near future.”

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Why Google Blocked 5.5bn Adverts

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US-based multinational technology corporation Google has blocked over 5.5 billion adverts and suspended 12.7 million others for violating its policies.

The search engine giant also said on Wednesday that it had removed adverts from over 2.1 billion pages.

https://gwg.ng/2024/03/28/see-the-pastor-that-charges-n1-7m-to-teach-people-how-to-perform-miracles/

“Billions of people worldwide rely on Google products to provide relevant and trustworthy information, including ads. That’s why thousands of people are working around the clock to safeguard the digital advertising ecosystem. Today, we are releasing our annual Ads Safety Report to share the progress we’ve made in enforcing our advertiser and publisher policies and to hold ourselves accountable in maintaining a healthy ad-supported internet,” it said.

https://gwg.ng/2024/03/28/man-jailed-6-months-for-stealing-car-battery/

In 2023, it said scams and fraud across all online platforms were on a steady rise.

“Bad actors constantly evolve tactics to manipulate digital advertising to scam people and legitimate businesses. To counter these ever-shifting threats, we quickly updated policies, deployed rapid-response enforcement teams and sharpened our detection techniques”, it added.

https://gwg.ng/2024/03/28/what-i-experienced-in-detention-firstnews-editor-narrates/

Millions of content creators across the globe, including Nigeria, rely on Google Ads to drive revenue.

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Amidst Rumours, Naira Exchanges ₦1,371.170/$1 At Parallel Market For March 28

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Naira dollar exchange for March 28

The Naira is today, Thursday, March 28 2024 exchanging 1,371.170 Naira to 1 US Dollar at the parallel market (black market) in Nigeria according to Naira rate’s Official X handle on Thursday. This means that you can get 1,371.170 Naira for every 1 Dollar that you exchange.

The black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels..

Note that the Black Market Exchange rate is typically higher than the official exchange rate because it is not regulated by the government.

Today, March 28 exchange, indicates that the naira appreciated against dollar with ₦26 difference compared to yesterday, when naira exchanged $1 to ₦1,345.300.

GWG.ng reports that the value of any nation’s currency is determined by aggregate supply and demand.

The forces of Supply and demand are themselves influenced by a number of factors, including interest rates, inflation, capital flow, and money supply.

The most common method to value currency is through exchange rates. The two main exchange rate systems are fixed rate and floating rate systems.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

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Naira Appreciates To N1,350/$ In Parallel Market

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The Nigerian currency, the naira, experienced a notable appreciation in value, reaching N1,350 per dollar in the parallel market, a sharp rise from N1,430 per dollar on Monday.

This trend was mirrored in the Nigerian Foreign Exchange Market (NAFEM), where the naira strengthened to N1,382.95 per dollar, up from N1,408.04, as reported by FMDQ data.

https://gwg.ng/2024/03/27/why-i-dont-win-awards-yemi-alade/

This development has resulted in an increased gap between the parallel market rate and the NAFEM rate, which has expanded to N32.95 from the previous N21.96.

The naira’s value has been on an upward trajectory, with an 18.28 percent increase recorded since February 23, 2024, when it hit a low of N1,665.50.

Analysts attribute the naira’s recent gains to a series of foreign exchange reforms implemented by the Central Bank of Nigeria (CBN).

These reforms, aimed at streamlining the foreign exchange system, include consolidating exchange rate windows, liberalizing the FX market, and clearing foreign exchange backlogs for banks and airlines.

https://gwg.ng/2024/03/27/son-of-ex-president-jailed-in-us/

The CBN’s introduction of a Price Verification System (PVS), revised limits on banks’ Net Open Position, removal of the daily cap on remunerable Standing Deposit Facility (SDF), and the restructuring of the Bureau De Change (BDC) sector, are steps towards fostering a more transparent and efficient market.

Further measures to enhance market dynamics include adjusting margin limits for International Money Transfer Operator (IMTO) remittances, implementing a two-way quote system, and thorough reforms in the BDC segment.

These initiatives are designed to improve market stability, transparency, supply, and price discovery in the Nigeria Autonomous Foreign Exchange Market.

In a recent move, the CBN has set the sale rate of dollars to BDC Operators at N1,251, directing them to offer foreign currency to eligible customers at a margin not exceeding 1.5 percent above this rate.

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See The Lastest Price Of Petrol (Per Litre) In Nigeria For Today

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One of the most essential commodities in the country and all over the world is petrol, also known as Premium Motor Spirit (PMS), as it powers various aspects of the economy and daily life.

However, the price of petrol has been fluctuating over the years, due to various factors such as global oil prices, exchange rates, subsidy policies, and supply and demand.

Current Price of Petrol in Nigeria

According to the regulator of petrol price in the country, the Nigerian National Petroleum Company Limited (NNPCL), the official pump price of petrol (PMS) in Nigeria is N617 per litre.

https://gwg.ng/2024/03/27/why-delta-state-assembly-reverses-sack-of-accountant-after-24-years/

This was after the federal government removed a subsidy on the commodity, which led to a significant increase in the price from N195 per litre.

However, due to logistics and other factors that vary by location, the actual price of petrol may differ across the country.

Naija News understands that petrol presently goes for prices ranging from N600 to N700 per litre across the country, while the over-the-country average price of petrol is presently N630 per litre.

https://gwg.ng/2024/03/27/why-i-granted-full-autonomy-to-local-government-councils-governor-alia/

The table below shows the petrol prices in all 36 states and FCT in Nigeria as of March 27, 2024, as released by NNPCL.

StatePrice (N)
Abia687.50 Per Litre
Abuja632.12 Per Litre
Adamawa671.40 Per Litre
Akwa Ibom677.00 Per Litre
Anambra680.00 Per Litre
Bauchi650.00 Per Litre
Bayelsa673.00 Per Litre
Benue632.84 Per Litre
Borno657.27 Per Litre
Cross River663.33 Per Litre
Delta665.63 Per Litre
Ebonyi638.71 Per Litre
Edo662.00 Per Litre
Ekiti651.33 Per Litre
Enugu673.87 Per Litre
Gombe703.00 Per Litre
Imo687.00 Per Litre
Jigawa679.67 Per Litre
Kaduna670.00 Per Litre
Kano678.27 Per Litre
Katsina680.40 Per Litre
Kebbi796.67 Per Litre
Kogi626.79 Per Litre
Kwara614.90 Per Litre
Lagos663.05 Per Litre
Nassarawa629.32 Per Litre
Niger624.04 Per Litre
Ogun653.11 Per Litre
Ondo653.02 Per Litre
Osun658.77 Per Litre
Oyo662.53 Per Litre
Plateau670.00 Per Litre
Rivers674.55 Per Litre
Sokoto664.80 Per Litre
Taraba704.11 Per Litre
Yobe675.55 Per Litre
Zamfara771.43 Per Litre

Please note that these prices are subject to changes in different stations across the country.

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Eno Neutralises Sharks In Akwa Ibom With N1.5bn Interest-Free Loans

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Akwa Ibom interest-free loans

Governor Umo Eno of Akwa Ibom on Tuesday announced a N1.5 billion interest-free loans to Akwa Ibom traders.

The News Agency of Nigeria (NAN) reports that the loans are to be managed by the Ibom Fadama Micro Finance Bank.

Eno also launched the free-food voucher programme for the vulnerables at the popular Itam market in Itu Local Government Area (LGA) of the state.

“I have heard of how some of you go to some places to get loans with very high interest rates and that has made the cost of food to go up, and before you finish paying the loans, you cannot meet up with your market or trading obligations anymore.

“I have come to tell you not to take such loans again, Consequently, we are releasing N500 million interest-free loans to each of the three senatorial districts making a total of N1.5 billion to help your businesses,” Eno said.

Besides the interest-free loans, the Akwa Ibom governor also promised to construct a car park, provide solar panel light, modern toilet facilities at Itam market for better convenience of the traders.

The Governor, therefore, directed the Transition Chairmen of the remaining 29 councils, excluding Itu and Uyo LGAs, to ensure they launch the free-voucher food programme by April 2.

The free food voucher for the vulnerable, is a key element of the Bulk Agency Bill that was signed into law a week ago, and the Board, equally inaugurated by the Governor, last week.

The key responsibility of the Agency is to provide free staple food items such as Garri, rice and beans to the most vulnerable through the Social Register. (NAN)

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Former DSS Chief, Dennis Amachree: Nigeria Shouldn’t Expel Binance Traders

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Dennis Amachree Binance

Dennis Amachree, a former Assistant Director of Nigeria’s Department of State Services (DSS), has stepped into the fray regarding the pursuit of individuals trading on the Binance cryptocurrency platform. His stance is coming against the backdrop of controversies surrounding the escape of Binance executive Nadeem Anjarwalla from custody, an event that has stirred widespread discussion and concern within the country.

Amachree’s argument revolves around the idea that targeting individual traders on the Binance platform lacks a justifiable basis. Instead, he contends that regulatory and investigative efforts should be directed towards scrutinizing the platform itself and its executives. To illustrate his point, Amachree draws an analogy with the banking sector, explaining that if a bank like UBA were implicated in a crime, authorities would focus on the management responsible for the bank’s operations rather than targeting its customers. He asserts that similar logic should apply to Binance and its users.

The escape of Anjarwalla from a guest house in Abuja, where he was being held alongside colleague Tigran Gambaryan, has raised serious questions about the efficacy of security measures and decision-making processes within the involved authorities. Amachree criticizes the apparent lax security that facilitated the escape, suggesting that Anjarwalla should have been detained by more secure and appropriate agencies such as the Economic and Financial Crimes Commission (EFCC) or the DSS.

This incident has ignited demands for accountability from the security personnel responsible for overseeing the custody of the Binance executives. Amachree’s remarks underscore the need for a thorough investigation into the circumstances surrounding the escape, as well as the enforcement of more stringent security protocols to prevent similar occurrences in the future. The escape has cast a spotlight on the competence and integrity of Nigeria’s security apparatus, prompting calls for swift and transparent action to address any shortcomings and restore public confidence.

In the wake of these developments, the Nigerian public awaits further updates on the investigation and hopes for decisive measures to ensure the accountability of those involved.

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CBN Ups Fight Against Inflation, Raises MPR

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CBN MPR

In a move apparently aimed at curtailing inflation, the Monetary Policy Committee, MPC of the Central Bank of Nigeria, CBN on Tuesday, to hike its benchmark Monetary Policy Rate, MPR by 200 basis points.

The decision came after the two day deliberations of the MPC for the month of March. It was the second time that the MPC now headed by CBN governor Yemi Cardoso and the second time that it would hike the MPR.

GWG.ng reports that the MPC at the end of today’s meeting elected to hike the MPR by 200 basis points.

The Committee voted as follows: Raise the MPR by 200bps to 24.75 from 22.75 per cent

Increase the asymmetric corridor to +100bps/-300 basic points.

Retain the Cash Reserve Ratio of Deposit Money Banks at 45 per cent and Adjust the CRR of Merchant banks from 10 per cent to 14 per cent.

The CBN retained a liquidity ratio of 13 per cent.

GWG.ng reports that the decision of the CBN to raise the MPR could be seen as being overtly cautious as many stakeholders had expected the apex bank to further monitor the steep rate hike it introduced last month.

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Pressure Mounts On Hoarders To Sell Off Dollars As Naira Rebounds

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CBN on dollars

Individuals and businesses holding on to dollars are facing renewed pressure to offload the excess foreign currency in thier possession as the Central Bank of Nigeria (CBN) continues to implement policies that are shoring up the value of the currency.

GWG.ng reports that the Nigerian naira, which recently experienced a significant slide selling up to N1,9000 against the dollar due to heightened demand and outstanding forwards, rebounded and sold below N1,3000 last Monday.

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According to Mallam Yakubu Salisu, a BDC operator, there’s a heightened willingness among people to exchange their dollars amidst fears of further depreciation.

The decision of CBN to sell 20,000 dollars worth of foreign exchange to eligible BDC operators across the nation marks a significant shift, especially after the suspension of such sales three years prior.

Out of the 5,690 registered BDC operators nationwide, approximately 1,373 have been screened for allocation, with specific allocations delineated for various regions including Abuja, Awka, Kano, and Lagos.

The recent circular issued by the CBN reinstating the sale of forex to BDC operators aims to rectify distortions in the retail forex market and bridge the exchange rate gap. The allocated rate of N1,301/$ reflects the lower band rate of executed spot transactions at the Nigerian Autonomous Foreign Exchange Market.

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Why FIRS Filed Charges Against Binance

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Binance charges

The Federal Government has initiated criminal charges against Binance, a cryptocurrency exchange platform for failing to pay statutory taxes to the government of Nigeria.

The charges were filed at the Federal High Court in Abuja, the Special Adviser (Media) to the Chairman of Federal Inland Revenue Service (FIRS), Mr Dare Adekanbi, revealed Monday.

The lawsuit, designated as suit number FHC/ABJ/CR/115/2024, implicates Binance with a four-count tax evasion accusation.

Joining the crypto company as second and third defendants in the suit are Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of Binance currently under the custody of the Economic and Financial Crimes Commission (EFCC).

The charges levied against Binance include non-payment of Value-Added Tax (VAT), Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.

In the suit, the Federal Government also accused Binance of failure to register with FIRS for tax purposes and contravening existing tax regulations within the country.

One of the counts in the lawsuit pertains to Binance’s alleged failure to collect and remit various categories of taxes to the federation as stipulated by Section 40 of the FIRS Establishment Act 2007 as amended.

Section 40 of the Act explicitly addresses the non-deduction and non-remittance of taxes, prescribing penalties and potential imprisonment for defaulting entities.

The charges further detailed specific instances where Binance purportedly violated tax laws, such as failing to issue invoices for VAT purposes, thus obstructing the determination and payment of taxes by subscribers.

“Any company that transacts business in excess of N25 million annually is deemed by the Finance Act to be present in Nigeria.

“According to this rule, Binance falls into that category. So, it has to pay taxes like Company Income Tax (CIT) and also collect and pay Value Added Tax (VAT).

“But Binance did not do this properly. So, the company broke Nigerian laws and could be investigated and taken to court for this infraction,” Adekanmbi said.

He added that the Federal Government remained resolute in its commitment to ensuring compliance with tax regulations and combating financial impropriety within the cryptocurrency sector.

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