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Green Africa Airways: Will Nigerian Aviation Industry Survive the Disruption?

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Green Africa Airways, a Nigeria-based airline startup, is revving up plans to disrupt the fragile Nigerian aviation industry. The company on Tuesday announced irresistible airfares for different routes in the country, and it has rattled existing airline operators who in the wake of COVID-19, made 100% increment in fares of domestic flights.

Founded in 2015 by Babawande Afolabi, who is also the CEO, Green Africa Airline has unveiled to the excitement of the Nigerian public, airfares slashed by 50%. Their operation which is scheduled to kick off on June 24 focuses firstly on selected domestic destinations including Abuja, Port Harcourt, Akure, Ilorin, Enugu and Owerri.

The company fixed the fare for these destinations, which as of April were N50,000 and N60,000, at N16,500. It says it offers a single class product to customers, charging for only what they need.

However, while jubilation has greeted the development, the question remains: will the Nigerian aviation industry survive the disruption?

As of December 2020, Nigerian airline operators were considering merger as COVID-19-induced strains grounded aviation activities, pushing them near bankruptcy. The Director-General of the Nigerian Civil Aviation Authority (NCAA), Capt. Musa Nuhu said then that merger was the only option the aviation industry had left, as government bailout intervention was not forthcoming.

“The COVID-19 pandemic exaggerated a bad situation; some airlines may not survive but the industry will come back better. It has always gone through crisis but has come back better. It has always gone through crisis but has come out stronger. The Airlines Operators of Nigeria are coming together to see what they can do to help the situation and they met with me. The industry will be different altogether.

“I am sure a lot of them will see changes in their model. I won’t be surprised there would be merger activities around airlines to reduce cost and survive,” he said.

Local airlines were said to be indebted to NCAA at the tune of N22 billion as a result of decline in flight activities around the country. Arik Airline laid off as much as 300 workers as the situation became a bit harder. There was growing despair among the operators as the industry’s survival rested solely on lifting of the flight ban.

However, in July 2020, when the authorities finally lifted the domestic flight ban, the cost of air tickets skyrocketed due to many factors, including foreign exchange and COVID-19 protocols that reduced the number of passengers each flight should carry.

Nuhu said the airlines carry their maintenance out of the country and it is done in foreign exchange. So they needed to raise enough money to service their aircrafts.

The 100% price hike thus became the bitter pill airline passengers have to swallow to keep the Nigerian aviation industry alive.

With its accumulated debt and low patronage, the aviation industry’s recovery is expected to take longer period. It is not yet up to a year. Green Africa’s emergence with crashed airfares means that other operators in the industry will be forced to return to pre pandemic flight fares.

For instance, Air Peace Airline, one of the biggest airlines in Nigeria, has reportedly reduced its fares across some destinations like Ilorin, and Abuja. The airline slashed the airfare from Lagos to Ilorin from N52,500, which some airlines charged last month, to N32,700. Also, the fare from Lagos to Abuja has dropped from N60,000 (in April) to between N23,000 and N29,000.

While the sustainability of Green Africa’s disruption is under question, given that foreign exchange among other things have since gone up, Afolabi appears to be leveraging cheaper-to-maintain aircrafts (propellers) that use 40% less fuel, to target the middle and lower end of the market.

It costs nearly N16,500 to travel by road with some premium bus transport companies, to the destinations of Green Africa. With the current security situation of the country, many travelers will find it easy to switch to the airline from June 24.

Tekedia Mini-MBA Edition 5 Session Labs – NFT, Satellite Broadband, Digital Currencies

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Tekedia Institute is excited to announce that our Session Labs for Tekedia Mini-MBA edition 5 will be on these underlisted topics, delivered by the noted companies:

  • Art, Creativity and Non-Fungible Tokens (NFT) – Artist3, Magic Carpet Studio (Nigeria)
  • Satellite Broadband & Your Business – Beeptool (Texas, USA)
  • Digital Currencies: E-Yuan, E-Dollars, E-Naira – Bitfxt (Dubai, UAE)

We use the Session Labs to introduce our members to new domains of business, exposing them to the possibilities of the near future. The dates and Zoom links will be provided when classes begin on June 7.

We thank our edition 5 partners. They will educate through live simulations and practical demos where possible on the session topics.

Villarreal Wins Europa League, Beat Man U in Penalty Shoot-out Thriller

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The UEFA Europa League final between Manchester United and Villarreal ended in a enthralling penalty shoot-out that saw the Spanish side took the trophy home.

It’s Unai Emery’s fourth. The Villarreal coach has mastered the art of snatching the Europa League trophy at every final he reached.

Gerard Moreno opened the scoreline in the 29th minute when he steered Dani Parejo’s free kick into the net. But the game ended 1-1 in the first half after Edison Cavani found a 55th minute equalizer for the English side, pushing the game into extra time.

The next 30 minutes of play produced no goals, leaving the match to be decided by penalties. All outfield players scored their penalties, leaving the two goalkeepers, David DeGea and Gerónimo Rulli to decide the match. Rulli coolly shot from the spot to put Villarreal in the lead, and denied DeGea from leveling the score when he saved the Man U’s keeper’s shoot.

The result has left Man U trophyless for four seasons now.

Man U coach Ole Gunnar Solskjaer said his side fell short against a team that finished seventh in La Liga this season, but now enter the Champions League as the Europa League winners.

“We didn’t turn up, we didn’t play as well as we can,” the United manager said. “We started all right; they got the goal with their only shot on target, and we’re disappointed to concede again on a set-piece.

“We pushed, we pressed, we got the goal, but after that we couldn’t control the game. They made it hard for us. We didn’t create enough big chances. Now is not the time to discuss what I might have done differently, but when you go home without a trophy you haven’t done everything right.”

Solskjaer was criticized for not making timely substitutions. Emery switched five players in normal time while Solskjaer took until the 100th minute before making his first change when replacing Mason Greenwood with Fred. He decision is believed to have hindered Manchester United from scoring before extra time.

But the embattled coach defended his decision, saying change was difficult to make.

“We had players out there, like Mason and Marcus [Rashford] who are match-winners. Bruno [Fernandes] and Edinson [Cavani] can create anything, Scott McTominay was the best player on the pitch and we had Paul [Pogba]. It was difficult to make that change when Fred had been injured for a week. But we couldn’t create enough chances. We needed to play our way into the box quicker,” he said.

The result thus ruined the prospect of English clubs winning both Champions League and Europa League.

It’s the first major title win for Villarreal in history, marking an incredible season for the Submarinos. Samuel Chukwueze, Villarreal’s Nigeria’s import ended the season in ranks with his compatriots, Asisat Oshoala and Kelechi Iheanacho who equally closed the season with Women UEFA Champions League and FA Cup titles respectively.

While Solskjaer has enjoyed the blessings of Man U board despite his failures, it’s not clear what this result will mean for his career as the English club’s head coach.

US Senate Considering $10bn Compensation Contracts for Jeff Bezos

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As a matter of contracts, Jeff Bezos has been getting increasingly sidelined by the United States government that the Senate is considering giving him special treatment through legislative amendment.

Recently, Blue Origin, Bezos’ space company, lost a multibillion NASA contract to Elon Musk’s SpaceX, heightening Washington-based contract losses that started with former US president Donald Trump. Now Congress is on the move to create a contract for Bezos, ordering NASA to make two awards.

The order would be issued under the Endless Frontier Act, a plan to increase funding for science and technology research that is now being debated on the Senate floor.

Blue Origin is based in Washington, the home state of Sen. Maria Cantwell, who is pushing under the Amendment, for $10 billion to be given to NASA, who will in turn, award it to Blue Origin as contract.

The latest blow to Bezos’ quest for a federal contract came following a competition against SpaceX for a contract to put astronauts on the moon, the first such trips since 1972. NASA awarded the contract to Elon Musk-owned SpaceX last month.

Blue Origin lost out after spending  $625,000 lobbying the Senate in the first quarter of the year, according to lobbying disclosure records.

Blue Origin and Dynetics, another company that also made a bid for the contract, filed protests with the Government Accountability Office, after it was awarded to SpaceX. Since the protests are still open, Congress seems to want to bypass the watchdog with a multibillion dollar handout to NASA to award more contracts.

This move by the Senate to create contracts for Blue Origin appears like appeasement for perceived squabble between Washington and Jeff Bezos. But it faces an obstacle.

Sen. Bernie Sanders, introduced a last-minute amendment Monday to eliminate the $10 billion. “It does not make a lot of sense to me that we would provide billions of dollars to a company owned by the wealthiest guy in America,” Sanders told The Intercept Tuesday.

In 2019, Bezos-owned Amazon filed a suit challenging Pentagon’s process for awarding $10 billion cloud computing contract to Microsoft. The process was being investigated by a market watchdog to ascertain if Trump and Bezos’ rift in any way got in the way of the process. Although the Pentagon denied any wrongdoing, the animosity between the president and the Amazon founder could not be ignored.

Cantwell introduced an amendment to the Endless Frontier Act to end what appears like injustice to other players in the US tech space, when it comes to government contracts.

Cantwell told NASA’s incoming administrator, former Sen. Bill Nelson, that she was surprised at the way the award unfolded, before introducing the legislation to add a new one.

“I think there needs to be redundancy,” or multiple contractors in case one fails, she told Nelson at his confirmation hearing. “And it has to be clear this process can’t be redundancy later. It has to be redundancy now.”

The Intercept said in its report that Cantwell’s measure wouldn’t rescind the grant to SpaceX but would create an additional contract that Bezos’ company would be in line to win.

The measure, which also seems like an attempt by Cantwell to get her state a federal tech contract, has been attached to the Endless Frontier Act as part of a manager’s amendment and authorizes $10.032 billion through the year 2026 for the moon program.

There has been broad bipartisan support for the bill in the Senate, indicating that it will be passed soon. The Intercept reported a procedural vote last week passed by a 71-27 margin, and that Senate Democratic leaders are eyeing a Thursday vote for final passage, after which it would need to move through the House of Representatives.

Towards the NDLEA Proposed Compulsory Drug Tests for Politicians and Students

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On Tuesday, 25th May 2021, the National Drug Law Enforcement Agency (NDLEA) took another stride towards combating illicit drug trafficking and use in Nigeria. The Chairman/Chief Executive of the agency, Brig. Gen. Mohammed Buba Marwa (rtd), revealed this plan while delivering a lecture on “Drug Abuse and National Security Challenge: Way Forward,” at the 5th-anniversary lecture of Presidential Diary magazine.

According to Marwa, politicians vying for political offices and students seeking admissions into higher institutions will be compelled to undergo drug tests. Marwa said that political positions should not be entrusted to users of hard drugs because they will not have the capacity to handle the responsibilities associated with the offices, especially considering that they will, most times, be under the influence of drugs. He further implied that students may be unable to partake in academic activities when they are under the influence of drugs. This means that their education will be affected. By these, the NDLEA boss describes how hard drugs promote bad leadership and poor education.

But these are not the only reasons NDLEA wants to go after politicians and students that take hard drugs. According to Brig. Gen. Marwa, hard drug trafficking, and use are among the major causes of the high rate of crimes and insecurities in the country. Of course, research has shown that hard drugs alter people’s perception of shapes, sizes, and sounds, which could lead to misconduct. Drugs also affect user’s emotions by inducing anxiety, sadness, anger, depression, and so on. You will agree with me that drug-related crimes exist and have constituted in societies. So, if the NDLEA decides to discourage users as a way of fighting illicit drugs in the country, the agency should be given maximum support from all of us. But then, are they ready to do as they said?

If you could remember, sometime last year, NDLEA proposed that couples preparing to get married will first go for drug tests before their marriages will be conducted. This proposal was a welcomed one because of the high rate of domestic violence the country witnessed during the COVID-19 lockdown. But the agency has not revisited it after dropping the hint so that, today, it is uncertain whether the plan will still be implemented. It should be known that controlling the rate at which drug abusers and addicts go into marriages will help to reduce the rate of domestic violence, especially the ones that lead to spousal deaths. I hope Brig. Gen. Mohammed Marwa will put this into perspective once again.

Nevertheless, aspiring for political offices, seeking admission into higher institutions, and planning marriages should not be the only reasons people get tested for drugs. How about those that gained employment in corporate and non-corporate organizations? How about professionals in different fields? What about civil servants? What of the military, paramilitary, and personnel of other forces? What about every individual that gives security operatives a reason to be suspicious? Let drug tests be for everyone.

The aspirations of the NDLEA chairman to eradicate hard drugs from the country by cutting down on its demand may sound far-fetched but it should not be bluffed. Over the past few weeks, reports on the NDLEA’s arrests and apprehension of drug traffickers made waves all over the country, showing that the agency is doing its best so far. Hard drugs worth billions of Nigeria have been intercepted and seized by this agency but many more will find their way into the country if nothing is done and done very soon. But, if you truly look at it, drugs will not come into the country if there is no demand for them. Hence, the NDLEA’s proposal to subject aspiring political office holders and students to drug tests is a welcomed idea and should be supported by all of us. Nevertheless, the test should be extended to other people from different walks of life.