The direction of current economic downturn bedeviling Nigeria is general expected to be known this New Year 2024. The year may determine the growth trajectory of the Nigerian economy as the Federal Government’s cocktail of economic reforms are expected to start yielding positive dividends. Therefore, the growth or continuous decline of the economy will manifest clearly in 2024.
Although, expectations are high on the quick recovery of the economy after the introduction of various reforms, two contending issues stand out: the spiraling inflationary pressures and the unstable exchange rate regime. The two stand as sore thumb that have impacted negatively on the living standard of Nigerians in particular and the economy in general. Every economic activity in the country at present revolves around the two, be it petty trading, Small and Medium Enterprises (SMEs) and the real sector.
Funding the 2024 Budget – Bureau of Public Enterprises (BPE)
The Bureau of Public Enterprises (BPE) is expected to play a major role in funding the 2024 Budget. The Federal Government has explained that it plans to finance the deficit in the N28.77 trillion 2024 budget approved by the National Assembly through new borrowings, privatisation proceeds and drawdown on multilateral and bilateral loans secured for specific development projects.
In the aggregate expenditure of N27.5 trillion proposed by the Federal Government in 2024, the non-debt recurrent expenditure is N9.92 trillion while debt service is projected to be N8.25 trillion, with capital expenditure gulping N8.7 trillion.
The budget deficit projected at N9.18 trillion in 2024 or 3.88 percent of the Gross Domestic Product (GDP) is lower than the N13.78 trillion deficit recorded in 2023 which represents 6.11 percent of GDP.
According to the government, the deficit will be financed by new borrowings totalling N7.83 trillion, N298.49 billion from privatisation proceeds and N1.05 trillion drawdown on multilateral and bilateral loans secured for specific development projects.
If the BPE falls short of expectation by not generating required amount to finance the budget deficit, it will leave the government with no other viable option but to recourse to more borrowing. Fortunately, feelers from the privatisation agency indicate that the projected figure may be surpassed.
President Bola Tinubu, while presenting the appropriation bill to the National Assembly, said Nigeria remains committed to meeting its debt obligations, and put the projected debt service at 45 percent of the expected total revenue.
Tagged, ‘Budget of Renewed Hope’, President Tinubu highlighted that his administration remains committed to broad-based and shared economic prosperity. He pointed out that the government is reviewing social investment programmes to enhance their implementation and effectiveness, stressing that “In particular, the National Social Safety Net project will be expanded to provide targeted cash transfers to poor and vulnerable households.”
The proposed budget, according to the president, seeks to achieve job-rich economic growth, macro-economic stability, a better investment environment, enhanced human capital development, as well as poverty reduction and greater access to social security. He accorded defence and internal security top priority as he pledged to overhaul the internal security architecture to enhance law enforcement capabilities and safeguard lives, property and investments across the country.
President Tinubu was optimistic that the 2024 Budget has the potential to boost performance, promote the development of Micro, Small and Medium-sized Enterprises, enhance security and public safety and improve the general living conditions of the people.
Monetary policy stance
There are expectations that interest rates, which simply refers to the cost of money would increase.
With the country’s inflation showing no signs of abating any time soon, the Central Bank of Nigeria (CBN) is expected to maintain a tight monetary policy stance in 2024, according to analysts.
Tight monetary policy is a set of measures taken by a country’s central bank to slow down the growth of money supply and reduce inflation. Such measures include raising interest rates, increasing cash reserve requirements, and selling government bonds. It is expected that decisions around these key variables would shape the year 2024.
During an outlook session organised by Parthian Partners, an inter-dealer broker, Bismarck Rewane, Managing Director/Chief Executive Officer of Financial Derivatives Company Limited affirmed that the CBN would maintain monetary policy tightening to tame inflationary pressures.
While suggesting that the independence of the CBN is crucial for price stability, Rewane stated, “Consequently, the CBN is likely to intensify monetary policy tightening in 2024.”
The CBN commenced a series of hikes in its benchmark interest rate in May 2022, raising it from 11.5 percent to 18.75 percent in July 2023.
The Economist Intelligence Unit (EIU), the research and analysis division of the Economist Group, said the CBN has no alternative but to launch a newly intensified phase of monetary tightening when the Monetary Policy Committee (MPC) next sits, which could be in early 2024.
The EIU projects the monetary policy rate to be raised by 300 basis points to 21.75 percent next year. “However, we do not expect the CBN to deliver a positive real short-term interest rate in 2024 or beyond, and there is a risk of even greater passivity than we expect. The MPC attaches a heavy weight to economic growth and policy choices will be subject to significant political interference,” it said in a new report.
It added: “We expect that the first rate cuts will be made in 2025, when disinflation and monetary easing in advanced markets will have set in, and that the policy rate will fall to 12.5 percent by 2026 and stay there until 2028.
Accounts without BVN
As Nigerians step into 2024, there are expectations that many bank accounts without the Bank Verification Number (BVN) or National Identification Number (NIN) will be restricted from March 1.
The CBN, in an earlier circular said a “Post No Debit or Credit” will be placed on such funded accounts without BVN or NIN on March 1, 2024.
CBN said it has also amended the regulatory framework for BVN operations and watch-list for the Nigerian banking industry to strengthen the know-your-customer (KYC) procedures in financial institutions.
Exchange Rate and inflation
There is a general consensus among analysts that exchange rate of the naira will attract more attention in 2024.
While the Governor of the CBN, Olayemi Cardoso, told the National Assembly that the soaring Inflation and exchange rates will drastically decline in 2024, most skeptics believe that existing fundamentals show that the expectations of the governor might not be realised.
Yet, Cardoso insists that outlook for domestic economy in Nigeria for 2024 is very positive as both the Inflation and exchange rates would withstand fluctuating pressures on them and get stabilised.
“The outlook for the domestic economy remains positive and expected to maintain the positive trajectory for 2024.
“Inflation pressures may persist in the short – term but is expected to decline in 2024. Exchange rate pressures are also expected to reduce significantly with the smooth functioning of foreign exchange market,” he said.
Economist’s views on inflation and the trading performance of the naira – Nigeria’s local currency – seems to be in tandem with that of Cardoso, the nation’s Central Bank Governor.
Bismarck Rewane, Chief Executive Officer (CEO) of Financial Derivatives, says Nigeria’s exchange rate is expected to appreciate as inflation drops in 2024.
But Rewane said, “Once inflation begins to decline, the exchange rate naturally appreciates because the exchange rate pass-through starts slowing down”.
“We expect the naira to end 2024 at N861.5 to a US dollar,” were the words of the Economic Intelligence Unit (EIU), the research and analysis division of the Economist Group, as captured in their December country report for Nigeria.
The research firm went further to state that this forecasted exchange rate of the domestic currency should be actualised from “an estimated N848:US$1 at end-2023, marking a period of relative steadiness, although the black-market rate is likely to be volatile.”
This estimate is for the official rate as dictated by the CBN, which currently trades at an all-time high of N887 to a US dollar.
The inflation rate recently hit a record high of 28.2 percent, indicating a return to an era witnessed in 2005.
Naira vs Cryptocurrency (cNaira vs eNaira)
Following the CBN’s planned framework on digital currency and unbanning of transactions on Cryptocurrency, a consortium of Nigerian banks, fintechs, and blockchain companies are developing a Naira stablecoin, cNGN, with sources close to the project stating a planned launch in 2024.
The newly proposed cNGN will be a compliant and regulated consortium-based Naira stablecoin. The cNGN will be pegged 1:1 with NGN, but unlike previous NGN stablecoin attempts, it will be held by Nigerian banks and will be legal tender.
Following the harsh year in Nigeria and the Naira situation, in 2024, there will be four distinct instances of the Naira in circulation, a mix of both digital (NGN, eNaira and cNGN) and old and new physical Naira notes.
The cNGN will be a crypto, like other stablecoins, and not a Central Bank Digital Currency (CBDC). The cNGN will be maintained by the consortium and will be held by the banks in the consortium.
The CBN will not have direct control over the cNGN in the same way it does with the eNaira, and the role it, along with the Nigerian Securities and Exchange Commission, will be playing is one of regulatory oversight.
According to Forbes Magazine, the key partners in the consortium include prominent Nigerian tier-1 banks such as First Bank, Access Bank, Sterling Bank and Providus Bank, payments companies Budpay, Kora (formerly KoraPay), and Interswitch, and Blockchain consultants Convexity and Interstellar. The proposed cNGN stablecoin, similar to existing stablecoins, will facilitate seamless international transfer of NGN.
Nevertheless, there are still many unknowns about the cNGN that will need to be clarified by the consortium, such as the blockchain it will use and the planned apps and services for consumers.
Tax collection
Zacch Adedeji as the new Executive Chairman of the Federal Inland Revenue Service (FIRS) would be part of those who will shape 2024, based on tasked ahead of him as the Federal Government struggles with revenue generation to fund the 2024 deficit budget.
Nigeria targets revenue generation above the projected N27.5 trillion for the 2024 budget. Under the Tinubu administration, there is a renewed commitment to enhance tax collection in Nigeria. The government aims to leverage technology and collaboration with relevant stakeholders to achieve its tax revenue targets.
Consequently, the FIRS set ambitious targets for tax collection, projecting a target collection of N7.5 trillion for the second half of 2023 and a massive increase to N25 trillion for the year 2024.
The ambitious target is premised on the fact that the FIRS collected over N8 trillion in tax revenue between January and August 2023. The administration is also eyeing N10.4 trillion from tax, dividends and others.
Banks deposit mobilisation
In a memo dated December 11, 2023, the CBN directed all banks, other financial institutions and non-bank financial institutions to suspend the processing fees on large deposits.
This development affects large deposits of over N500,000 for individual accounts and N3,000,000 for corporate accounts. The policy on other charges remains unchanged.
Before now, deposits over these thresholds saw processing charges of two percent for individuals and three percent for corporates. But effective immediately, the CBN has suspended these fees. This suspension will hold until April 30, 2024.
This considerable shift in policy will see financial institutions in Nigeria losing all revenue they previously made from these charges. The public, on the other hand, will benefit from freely depositing any amount in their individual or corporate accounts.
This move will impact the country positively, especially small and large businesses. It will also encourage the public to keep their money with financial institutions, thereby ensuring compliance with its cashless policy
Budget 2024 and finance ministry
President Tinubu recently presented the 2024 Federal Government budget proposals at the joint session of the National Assembly in Abuja. The proposed Revenue and Expenditure budgets for 2024 are N18.32 trillion and N27.50 trillion, respectively, resulting in a N9.18 trillion fiscal deficit.
The 2024 Budget, themed the “Budget of Renewed Hope” will significantly shape the Nigerian economy in 2024.
According to the president, it is strategically designed to achieve several key objectives. The primary focus areas include fostering job-rich economic growth, maintaining macroeconomic stability, improving the investment environment, enhancing human capital development, reducing poverty and expanding access to social security.
To optimise the budget performance, the government has affirmed its commitment to prioritising value for money, promoting greater transparency and ensuring accountability.
In executing these priorities, the government intends to strengthen collaboration with both development partners and the private sector.
Managing all federal revenues and expenditures in Nigeria, the federal ministry of finance, will get the highest allocation of N9.33 trillion in the 2024 budget.
According to the appropriation bill, the ministry plans to spend N20.95 billion for personnel costs, N8.49 trillion for overhead expenses, and N808.92 billion for capital expenditure.
While the significant allocation may come across as the government’s effort to strengthen the ministry’s capacity, the country is still plagued by weak revenue generation as the ministry is responsible for some revenue-generating parastatals and making policies to enhance Nigeria’s fiscal space.
All eyes on Marine and Blue economy
The creation of a new ministry of Marine and Blue Economy headed by the former Osun State governor, Gboyega Oyetola, has raised hopes that Nigeria will now harness its maritime potentials.
For years, the presence of the maritime sector under a ministry of transportation had left much potential in the sector untapped. Nigeria had continued to lose billions of Naira to huge capital flight as a result of the domination of its cabotage regime by foreign shipping companies. The inability of indigenous ship-owners to compete favourably with their foreign counterparts has meant that Nigeria’s coastal and inland waterways operations has been left to foreign shipping companies who end up repatriating proceeds made from these operations back to their home country.
The cry by industry operators that the Cabotage Vessel Financing Fund (CVFF), which was designed to shore up indigenous capacity, should be disbursed fell on deaf ears over the past 20 years since the Coastal and Inland Shipping Act was enacted in 2003.
All through the time, the maritime sector was domiciled under the Ministry of Transportation, efforts to disburse the CVFF ended up in futility due to a lack of political will by previous government to encourage indigenous capacity in Nigeria’s cabotage regime.
With the creation of a new ministry of Marine and Blue Economy, expectation is high in the maritime industry that come 2024, Nigeria will finally shore up indigenous tonnage and take its rightful place in its cabotage operations through the disbursement of the CVFF.
The collapsing state of port infrastructure across the country reached an alarming level in 2023 when the Nigerian Ports Authority (NPA) raised the alarm that if nothing is done, some ports might finally go down in years to come.
Managing Director of the NPA, Mr Mohammed Bello-Koko, while speaking with newsmen in the first quarter of 2023, had said that around $800 million will be needed to repair collapsing ports in Apapa, Tin-Can, Onne, Calabar and Warri breakwaters.
“Our estimate currently is between $560 million and $800 million. Now that gap is because if we decide to leave Apapa to some other time, we do not need $800 million but we need to also reconstruct Tin-Can, as we are reconstructing other places; we need about $800 million.
“The port of Tin-Can is collapsing. There is no imminent collapse but in the next few years, if nothing is done, there will be problems. We have been managing it and doing other palliatives but it is time we rehabilitate Tin-Can ports. We also need to rehabilitate some parts of Apapa. We need to reconstruct the breakwaters in Escravos. It has collapsed for over 10 years,” the NPA MD had said.
On possible solutions, the NPA MD explained that the Authority will either raise the $800 million to repair the ports or source for the fund through a loan which will be repayable under a seven years agreement.
“If the Authority is going to raise $800 million to repair the port, it will reduce what we contribute to the Consolidated Revenue purse of the Federal Government. The second option is for us to secure a loan facility which will be repayable under a seven years agreement,” Mr Bello-Koko explained.
With much talk on the collapsing port infrastructure in 2023, expectations are high that in 2024, repair works will commence once the NPA’s request to repair the port is approved by the Federal Executive Council (FEC).
Lekan Fadolapo: The uncommon regulator, and factors that will shape Advertisement industry in 2024.
Despite being very huge in potential, the nation’s advertising sector has continued to struggle in its bid to maximise this obvious potential. For instance, besides the obvious lack of due recognition and support from government, the practice itself had, in the past few years been bedeviled by lack of strong legislation, since the available laws then were too archaic for any regulator to effectively carry out its regulatory duties in the modern-day advertising space.
But, all this seems to be changing now! The advent of a new helmsman at the apex regulatory body in the industry, the Advertising Regulatory Council of Nigeria (ARCON), Dr Lekan Fadolapo, seems to be giving the industry a new lease of life.
Since coming on board, the former Executive Director of Advertising Agencies Association of Nigeria (AAAN), has begun to gradually untie the knotty issues that have held down the growth of the industry for years.
For instance, the push for a change of name from the Advertising Practitioners Council of Nigeria (APCON) to ARCON, the new helmsman argued stemmed from the need to effectively regulate the practice, and not really the practitioners. Fadolapo argued that the statutory mandate of the body is to regulate advertising practice in whatever form, noting that the new ARCON Act provides the opportunity to do that.
Another of such feats are the inauguration of the Advertising Offences Tribunal and the launch of the Advertising Industry Standards of Practice (AISOP), made possible by the resilience of Fadolapo, since assuming office few years ago.
Not a few are, therefore, tipping the ARCON’s helmsman as one of those individuals that will shape the practice in the 2024.
For instance, Fadolapo has stated that the New Year is not going to be business as usual for practitioners, since the agency will be all out to enforce the law. While the ARCON boss will prefer practitioners to stick to the rules of the game, rather than face prosecution, not a few are, however, of the belief that the Advertising Offences Tribunal will go a long way in shaping the industry in the new year; since ARCON has signified its intention to wield the big stick on erring practitioners.
Fadolapo has also disclosed the intention of the agency to embark on a national audit of advertisement agencies, by categories and specialisation, in a bid to further reposition the industry in 2024.
One of the ways the agency plans to achieve this is to write to all the sectoral groups about the plans, and let them know that it will no longer be business as usual.
The New Year is also likely to witness a further bonding between the town and the gown of the industry. Fadolapo believes there is the need for practitioners and the teachers of the practice to be on the same page. While this has started with the Advertising colloquium held Lagos in 2023, the New Year may witness the escalation of such efforts.
The regulation of online advertising is another factor, with huge potential of shaping the advertising space in the New Year. Hitherto, online advertising had been largely unregulated, giving room to all sorts of unwholesome contents in the mold of advertisements on the space.
While Fadolapo insists that the agency is not out to regulate online activities, it will, however, carry out its statutory mandate of regulating ads in whatever guise and online advertisements will, therefore, not be an exemption.
The setting up of two committees: the Brand Nigeria and GDP Multiplier Committees by ARCON will also go a long way in determining the fate of the industry in 2024.
For instance, the Brand Nigeria Committee is designed to change the common erroneous narratives about the country, and promote the huge potential it has for potential investors, the GDP Multiplier Committee is meant to determine the real contribution of the sector to the national GDP. The outcomes of all these, industry watchers argue, will have their impact on the industry in the New Year.
The ‘war’ between ARCON and one of the sectoral groups in the industry, the Advertisers’ Association of Nigeria (ADVAN) may escalate this year.
While ADVAN is holding tight to its position of allowing ‘he who pays the piper’ to dictate the tune, ARCON is insisting any individual or group of individuals, having anything to do with the advertising in the country must be ready to submit themselves to the law guiding the practice.
The association had, in 2023, challenged the regulatory body over its introduction of the Advertising Industry Standard of Practice (AISOP), threatening to go to court if some of the provisions in the law are not amended. But ARCON seems unperturbed by such threats; regulating the practice is its mandate, and it will go the full hog of carrying out such mandate it has insisted.
We may see the escalation of this crisis in the New Year; since the two sides are sticking to their guns.
Real estate sector
For the real estate sector, 2024 is expected to be better as the Federal Government is showing signs of interest.
The residential real estate project, according to an industry’s expert, Mr Femi Oyedele, an estate surveyor and valuer, would lead the pack with institutionalised construction of more than 1,000 units by federal government, state governments, ministries, departments and agencies (MDAs) and private organisations like Dangote Group and BUA Group going into residential real estate development.
Anticipating the high level of fund that will be in circulation, the expert said that majority of Nigerians would find their way to the real estate sector.
“This is because housing is a basic need of everyone and a bundle of joy. It is a status symbol in Nigeria and a real store of value, especially against ravaging high inflation in Nigeria,” Oyedele said.
In 2024, it’s expected that people will invest more in the real estate sector due to the high trust in the government and high level of fund that will be in circulation with Federal Government ‘Budget of Renewed Hope’ proposal of N27.5 trillion.
It is also expected that the diaspora Nigerians will be interested in buying properties at home.
With the creation of mortgage system that can cater for their housing finance need, Oyewole expressed optimism that real estate sector will have a field day in 2024.
Oyedele foresees BUA Group as one major player in the real estate sector in 2024.
“I foresee BUA Group going to Port Harcourt to build a residential estate in that city due to high demand for housing that will be brought about by the reactivated refineries,” he said.
Oil and gas sector
The price of petroleum products has hit the roof since May 29 when the fuel subsidy was removed, creating hardship for Nigerians who had to contend with a high price of fuel in addition to the price of food items that have revved up since the beginning of the year. The expected respite from the Dangote refinery may be immediate. This is because the plant will start refining Automotive Gas Oil otherwise known as diesel, Aviation fuel and other products already deregulated before it commences production of petrol.
Designed for 100 percent Nigerian crude with the flexibility to process other crudes, the 650,000 barrels per day Dangote Petroleum Refinery can process most African crude grades as well as Middle Eastern Arab Light and even US Light tight oil as well as crude from other countries. Dangote Petroleum Refinery can meet 100 percent of Nigeria’s requirement of all refined products, gasoline, diesel, kerosene, and aviation jet, and also has a surplus of each of these products for export.
Dangote Refinery has a self-sufficient marine facility with the ability to handle the largest vessel globally available. In addition, all products from the refinery will conform to Euro V specifications.
The refinery is designed to comply with US EPA, European emission norms and Department of Petroleum Resources (DPR) emission/effluent norms as well as African Refiners and Distribution Association (ARDA) standards.
Fresh relief on the price of petrol may be on sight for Nigerians in the New Year following plans by the Nigerian National Petroleum Company Limited (NNPCL) for the mechanical completion of Warri Refinery and Petrochemical by the end of January 2024. If the goal is accomplished according to the NNPCL source, a test run of the plant will be conducted in February to enable the facility to become operational by the second quarter of 2024.
The NNPCL management is reportedly determined to ensure that both Port Harcourt and Warri refineries will be operational by the first half of 2024 to ease the country’s dependence on fuel importation. Although the volume of refined petrol from both the 60,000 barrels from Port Harcourt Refinery and the 125,000 barrels from Warri Refinery and Petrochemical has not been disclosed at present, the product from them and what will be coming from Dangote Refinery will significantly help the country to stem the tide of petrol importation.
Another area in the petroleum sector that may help in alleviating the challenges faced by Nigerians in 2024 is the modular refinery.
A modular refinery is described as a simplified refinery requiring significantly less capital investment than traditional full-scale refinery facilities. The initial process or Crude Distillation Unit (CDU) allows for the simple distillation of crude oil into low-octane naphtha, diesel, kerosene, and residual fuel oil.
In Nigeria, the Waltersmith refinery is located in Imo state, and it is the biggest commissioned modular refinery in the country. The refinery project is being developed in phases by Waltersmith Refining and Petrochemical Company, a subsidiary of Nigeria-based Waltersmith Petroman Oil.
The phase one refinery development with an initial capacity of 5,000 barrels of crude oil a day (bpd) started operations in November 2020.
Waltersmith Refining and Petrochemical Company is a joint venture between Waltersmith Petroman Oil (70 percent) and the Nigerian Content Development and Monitoring Board (30 percent).
Waltersmith was granted a license by Nigeria’s DPR to establish the refinery in June 2015 and received the construction approval in March 2017. The final investment decision (FID) on the phase one refinery project was reached in September 2018.
The ground-breaking ceremony for the expansion of the refinery to 50,000bpd capacity took place in November 2020. The modular refinery is intended to reduce the import of petroleum products by Nigeria.
The Waltersmith refinery is located in the Ohaji-Egbema Local Government Area, Imo State, in southeast Nigeria, situated near the Ibigwe marginal field flow station.
The Waltersmith modular refinery comprises a crude distillation unit, tank farm, and other related facilities. With an initial capacity of 5,000 bpd, it is expected to deliver 271 million litres of refined petroleum products a year. The crude oil storage capacity of the refinery is approximately 60,000 barrels. Subsequently, the refinery plans to be expanded in phases to have a 20,000bpd crude oil refining facility and a 25,000bpd standalone condensate refining facility taking the total processing capacity to 50,000bpd.
The refinery receives feedstock from the Waltersmith-operated Ibigwe marginal field. The petroleum products produced in the refinery include diesel, naphtha, heavy fuel oil, and kerosene.
Africa Finance Corporation (AFC) agreed to provide debt finance of approximately £26.5m ($35m) for phase one refinery development in July 2018. Velem was awarded an engineering, procurement, and construction (EPC) contract for the initial 5,000 bpd modular refinery project in April 2018. Velem is a joint venture between US-based VFuels and Nigeria-based Lambert Electromec.
Ibigwe is an onshore marginal oil field located in Oil Mining Lease (OML) 16 in Imo State. The field is operated by Waltersmith Petroman Oil which holds a 70% stake, while the remaining 30% stake is held by Morris Petroleum.
Waltersmith was awarded the Ibigwe field in the first Nigerian marginal oil field licensing round in 2003.
Aviation
Top on the list of those whose activities will determine the position of the sector in 2024 is the Managing Director of the Federal Airports Authority of Nigeria (FAAN), Mrs Olubunmi Oluwaseun Kuku.
Speaking on those capable of shaping the sector in the New Year, a member of the Aviation Round Table (ART) and the director at Zenith Travels, Mr Olumide Ohunayo, mentioned the FAAN managing director, as the female personnel to occupy the highest position in FAAN in the history of aviation.
According to him, the female FAAN MD is worth looking up to for some notable feats which will not only reposition the organisation but further change the negative perception about the airports in the international space.
Beside the infrastructural deficiencies and obsolete structures adorning the airports, the Nigerian airports have been described as the most expensive globally, to many key players, the ability of Kuku to address these and many other challenges will go a long way in the New Year to shore up the image of the sector.
Ohunayo, while speaking with the Nigerian Tribune declared: “Looking at those who can shape year 2024 in the aviation sector, I think the lady newly appointed as MD FAAN has the potential. Young lady not within the system, brought from outside with some experience from aviation industry, this should guide her.
“Looking at the conflicting interests in appointing who will head FAAN and she being the person able to survive all the potholes from all the political directions shows that she could actually give a push to the industry. FAAN is very important and significant in moving the sector forward and I think her appointment and her level of education and experience should help us through that.
Besides the FAAN MD, the newly-appointed Acting Director-General of the Nigeria Civil Aviation Authority (NCAA), Captain Chris Najomo has also been identified as other personnel whose activities at the regulatory agency are capable of shaping the New Year.
Among the challenges confronting the NCAA which key players are looking up to the Acting DG to address is in the areas of shortage of safety inspectors, the controversy surrounding the relationships between airlines and passengers as it affects flight delays and cancellations and other inherited policies, including the number of aircraft a new airline is expected to have and many others.
Najomo, a seasoned pilot with over three decades of experience in aviation before his appointment, was the Director. Consumer Protection and Public Affairs, NCAA.
According to Ohunayo, the Acting DG, with all his pedigree, has the capability and capacity to positively influence the sector in 2024.
“I see the acting DG of NCAA, Captain Chris Najomo, as being capable of influencing the sector next year. Here is a man most people have criticised his appointment. Everybody has his social life, either high or low, nobody has questioned his professional life. I think what is needed and significant is his passion to move the sector forward. What is important is his professional life. I think the DG has started well by consulting with stakeholders to see what the problems confronting the sector are, and looking at his experience, having gone through the directorate of consumer protection and air transport regulations, those areas that are key in the regulatory functions, this should also guide him in having excellent performance.”
The newly appointed managing director of the Nigerian Airspace Management Agency (NAMA), Mr Umar Ahmed Farouk, who is described as a multitalented and resourceful aviation sector professional with vast aviation experience is also grouped among those who will shape the sector in the New Year.
According to Mr Ayo Adesanmi, who described himself as a contractor in the sector, the industry experience and pedigree acquired by Farouk in more than 25 years of exposure in Nigeria, Europe and other countries puts him in a better position to make some sweeping changes that will subsequently reshape the sector through the policies he is bringing to run the affairs of the agency saddled with the responsibility of making flight operations safe and secure through the provision and installation of standard navigational equipment across the country’s airports.
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