Travel News

The Nigerian Customs Service (NCS) is poised to ground more than 60 private jets starting October 14 in a crackdown on unpaid import duties amounting to billions of naira, according to reports by local media.

Documents exchanged between the NCS and the Nigerian Airspace Management Agency (NAMA) - seen by The PUNCH newspaper - showed the enforcement follows a verification exercise conducted in June and July 2024 which revealed that many of the affected aircraft are foreign-registered and owned by influential business leaders and bank executives. Affected owners would be notified by the NCS, which expects to generate more than NGN260 billion naira (USD159.4 million) from the clamp-down. Aircraft that have left the country to evade scrutiny will also be grounded on their return. The NCS has written to the Nigerian Civil Aviation Authority (NCAA) and the Nigerian Airspace Management Agency (NAMA) to deny flight clearances until the overdue duties are paid, reports Politics Nigeria.

Despite some operators lobbying for intervention, the presidency reportedly declined to interfere. Notably, one bank reportedly paid NGN5.3 billion (USD3.2 million) to avoid the clampdown.

According to The Punch, aircraft on the list include Challengers 600s, Challenger 350s, Global 6500s, and Global 7500s.

ch-aviation has reached out to the NCAA and NAMA for comment.

The Federal Government has rescinded its decision to ground 60 private jets owned by various individuals in Nigeria over unpaid import duty running into several billions of naira.

The PUNCH reported on Monday that the government through a directive from the Nigeria Customs Service to the Nigeria Airspace Management Authority was expected to have grounded the defaulting jets.

There are reports that duties are not being paid on the majority of private jets currently in the country with the NCS seeking to recover unpaid import duties running into several billions of naira.

The development reportedly led the NCS to carry out a one-month verification exercise on all private jet owners in the country between June and July.

The latest decision to ground the private jets is coming almost three months after the NCS verification exercise.

But in an exclusive chat with the acting Managing Director of NAMA, Umar Farouk, he said the jets are yet to be grounded because the NCS sent the agency a new letter requesting another 30-day window for the debtors to clear their import duties.

“We were supposed to ground the jets today (Monday) but we got another letter from customs requesting that the action be suspended for another month, maybe that is to allow for settlement,” Farouk stated.

Also, a statement signed by the spokesperson of the NCS, Abdullah Maiwada, and sent to The PUNCH, confirmed the acting MD’s position, saying the customer service had extended the verification exercise by a month.

Maiwada said the extension was to further engage operators who had expressed willingness to regularise their import duties.

“The Nigeria Customs Service wishes to inform the general public, particularly operators of privately-owned aircraft, that the verification exercise for the recovery of import duties on illegally imported private aircraft has been extended by one month, from Monday, October 14, 2024, to Thursday, November 14, 2024,” the NCS stated.

Construction pace needs to rise by 'six times at least,' Concordia researcher says

Average monthly rent could reach $7,500 in Vancouver and $5,600 in Toronto by 2032 if current trends in construction and population growth continue, a study by Concordia University and private equity real estate company Equiton projects.

The research, by Erkan Yönder, an associate professor at Concordia’s John Molson School of Business, used machine learning to model growth in rents using housing and census data and immigration and population projections. The model suggests “rents will continue to grow rapidly” if both the addition of new supply and population growth remain at status quo levels, indicating the need for a massive increase in building.

It shows average rents in Toronto hitting $4,100 by 2027, up from $3,250 in March 2023, and reaching $5,600 by 2032. Average rents in Vancouver are projected to reach $5,200 by 2027 and $7,750 by 2032.

The research is intended to show how data can be used to address Canada’s housing crisis by identifying specific neighbourhoods where demand and prices could grow the most.

It also serves as a call to action, pointing out just how much more construction is needed overall. “We need to build more and more,” Yönder told Yahoo Finance Canada in an interview, ”like six times at least” the current pace of new development.

“I think there is no government who could take this burden on its own,” Yönder said. “So you really need the capital markets” in the form of REITs, developers and investors, he says.

Low vacancy disrupting supply/demand dynamics

The extent of Canada’s housing crisis has been well documented, with shelter inflation remaining a concern at the Bank of Canada even as many other indicators have returned to acceptable levels. A recent report from the Canadian Centre for Policy Alternatives notes that the average rent is not affordable for minimum wage earners in nearly every urban Canadian neighbourhood.

Vacancy rates are currently so low that “the traditional relationship between economic factors is disrupted,” the Concordia study says, with demand so high that rents are likely to keep rising even when more supply is initially added. The model shows rents starting to drop only when annual completions reach about 11 to 12 per cent of existing housing stock in a given area. The report notes that annual completions in the Toronto area were 1.1 per cent in 2023.

“In other words, annual supply increases must reach 10 times the current levels (compounded over time) to meet the excess demand present in the market,” in Toronto, the report says.

Average rents in Montreal are projected to rise from $2,100 (in March 2023) to $3,325 by 2027 and $4,325 by 2032. In Calgary, where average rent was $1,900 in March 2023, the projections show it reaching $2,200 by 2027 and $2,600 by 2032.

Although the projected figures are hundreds or thousands of dollars more than current average rents, recent history shows that the potential growth (for example, increases of 26 per cent in Toronto and 50 per cent in Vancouver by 2027) is highly possible. Average rents in Canada increased by 30.8 per cent between April 2021 and June of this year, according to Urbanation and Rentals.ca data. In Toronto, rents went up 34.6 per cent during that period, and 40.8 per cent in Vancouver.

Though those average city rents are stark, Yönder says the solutions need to be specific to each neighbourhood, “because some places are heating up and some places are not heating up that much.” He argues for zoning rules and regulations tailored to specific areas that projections suggest will see rising demand.

“Our findings highlight the importance of developing location-based policies and the urgency of easing supply restrictions. It is increasingly clear that achieving a healthy supply/demand relationship will depend heavily on the private real estate sector, more specifically those capable of large-scale development.”

John MacFarlane is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jmacf.

By Olasunkanmi Akinlotan

The Federal Ministry of Aviation and Aerospace Development has directed foreign airlines flying in Nigeria to patronise Nigerian caterers.

This directive is coming barely five months after the Minister of Aviation, Festus Keyamo, at a forum in May in Riyadh, Saudi Arabia, appealed to foreign airlines to patronise local content, specifically Nigeria’s catering service.

The minister believes that the directive is consistent with the principles of reciprocity outlined in the Bilateral Air Services Agreement that aims to boost Nigeria’s local economy.

This was contained in an internal memo exclusively obtained by our correspondent on Tuesday, in Abuja.

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The memo from the Ministry of Aviation and Aerospace Development directed the Nigeria Civil Aviation Authority to convey the minister’s directive to the foreign airlines, adding that enforcement will commence from January 1, 2025.

The memo, dated October 15, 2024, was signed by H.E Ejibunu, a director overseeing the office of the Permanent Secretary of the ministry.

The memo reads, “l am directed by the Minister of Aviation to convey to you his decision to mandate all outbound flights from Nigeria, especially foreign airlines to patronise local caterers for onboard meals. Directive of the minister to foreign airlines on onboard meals 2.

“Consequently, you are hereby directed to convey the decision to all foreign airlines for strict compliance beginning from January 1, 2025. Thank you.”

When contacted to speak on the development, President of the Association of Foreign Airlines in Nigeria, Kingsley Nwokoma, described the directive as a welcome development, adding that foreign airlines were already lifting onboarding foods from NCAA-approved food vendors.

Nwokoma stressed that “Maybe the directive was just for emphasis because most foreign airlines have already been lifting food from our local NCAA-approved food vendors.

“If you ask the local airlines, they will attest to this but either way, this is a welcome development, and just like I said earlier foreign airlines are already doing as directed to promote our own local delicacies and contents.”

Ethiopian Airlines, Africa’s No 1 carrier has said it will soon introduce its newest state-of-the-art Airbus A350-1000 aircraft that offers unmatched comfort, luxury, and technological advancements to its Lagos fleet. 

This is just as it marked its 78th anniversary at the 20th Akwaaba African Travel Market in Lagos.

The airline’s Sales Manager, Mrs. Adetola Alabi, disclosed this while presenting a paper titled: ‘Ethiopian Airlines, Past, Present and Future Innovations for Continued Leadership in Aviation’.

She also showcased the airline’s rich history and exciting future.

Alabi said that passengers could expect a spacious and modern cabin with wider seats, more legroom, and a premium travel experience.

The A350-1000, Alabi informed, also features cutting-edge entertainment systems, Wi-Fi connectivity, and a quieter, smoother flight.

On the legacy of resilience and innovation, the sales manager stated that Ethiopian Airlines has been steadfast in Nigeria since the country’s independence in 1960.

She noted that despite challenging times, including the Nigerian Civil War the airline has remained committed to serving the Nigerian market.

A record number of Nigerians are seeking protection in Canada, according to new reports from the country’s immigration authorities.

Data from Immigration, Refugees, and Citizenship Canada (IRCC) show that asylum seekers in the first half of 2024 marked the highest number in a decade. In this period, up to 7,650 Nigerians requested refugee protection—a 408% increase from the same period in 2023 and a 95% rise compared to 2015 when only 305 asylum claims were recorded.

Canadian media reports indicate that since 2013, the foremost reasons for refugee claims from Nigeria have been gender-based violence, sexual orientation, and religion, according to the Immigration and Refugee Board of Canada (IRB).

Nearly 32 percent of the 34,970 Nigerian refugee claims filed between 2013 and 2023 were due to gender-based and domestic violence, 21.4 percent cited persecution based on sexual orientation, and 13.8 percent were related to religious reasons.

However, experts believe other factors may be driving the massive rise this year.

“Nigeria is the largest country in Africa, and naturally, the numbers will be bigger,” Usha George, a professor in the school of social work at the Toronto Metropolitan University and an expert in newcomer settlement and integration in Canada, told BusinessDay. “Apart from religious issues, there’s also the political and economic situation in Nigeria, which isn’t conducive to people staying there.”

Nigeria’s economy has been caught in a worsening crisis over the past year. Inflation is at levels not seen in nearly three decades, the naira continues to depreciate, and essential goods like food and fuel are increasingly unaffordable for the majority of the population.

“These Nigerians see Canada as a better option,” Usha added. “It’s a stable country where they can build a life without fear.”

In response to the growing influx of refugees and asylum-seekers, the Canadian government announced in November 2023 that it would provide $7 million to establish a reception centre near Toronto’s Pearson International Airport. The facility aims to streamline services and housing for refugees.

Canada has welcomed over 200,000 immigrants annually since 1988. Recently, the country decided to increase this figure to over 400,000 per year. Under its Immigration Levels Plan, Canada aims to welcome 76,115 refugees by 2026, with 72,750 expected this year alone.

One of the driving factors behind Canada’s open immigration policy is its low natural population growth, which has led to sluggish labour force and economic growth. This situation makes it difficult for the government to generate the tax revenue needed to support social services such as healthcare and education.

One way Canada has addressed this is its Resettlement Assistance Program (RAP) which offers government-assisted refugees a range of essential services, including monthly income support, school allowances for children, maternity and newborn allowances, and a housing supplement.

“Canada has a relatively generous refugee policy,” Usha said. “Once you set foot in Canada, you cannot be deported easily. That encourages people to try their luck—even though only 42 percent of claimants are successful, with 45 percent of cases withdrawn or abandoned.”

Usha also pointed out the possible role of irregular migration in the rising numbers. “There’s a network of people facilitating the movement of Nigerians to Canada. Once a path opens through informal channels, others follow.”

Meanwhile, Abike Dabiri-Erewa, chairperson of the Nigerians in Diaspora Commission, has repeatedly urged Nigerians to avoid dangerous migration routes and ensure they follow legal processes. “There should be no short corners and no irregularities in the immigration process,” she told willing migrants

As for whether this trend will continue, Usha said, “It depends on several factors.” Unless Nigeria undergoes significant political reform, curbs ethnic violence, and alleviates economic hardships, the rate of asylum claims out of the country may not drop anytime soon, she suggests.

By Lara Adejoro

Nigerians spent about $2.38m on foreign healthcare-related services from January to June 2024, findings by The PUNCH have shown.

This is according to a report from the Central Bank of Nigeria on the amount spent on health-related and social services under the sectoral utilisation of foreign exchange.

A breakdown of the report showed that $2.3m was spent in January; $0.00m in February; $0.01m in March; $0.00m in April; $0.05m in May; and $0.02m in June.

Our correspondent observed that the amount spent on foreign healthcare-related services in the first half of the year was more than that spent in the second half of 2023 from July to December, which was at $0.69m.

No fewer than four vessels carrying imported Premium Motor Spirit, popularly called petrol, arrived at seaports situated along the nation’s borders between Friday, October 18, and Sunday, October 20, findings by The PUNCH show.

According to a document obtained from the Nigerian Port Authority on Sunday, about 123.4 million litres of PMS were berthed at two seaports to improve fuel supply nationwide.

The latest development confirms an exclusive report by The PUNCH, which disclosed that oil dealers intend to import the commodity to supplement the supply from the $20bn Dangote Petroleum Refinery.

The dealers had stated that the supply from the Lekki-based plant was currently insufficient to meet domestic demand.

They had alleged that the plant was producing about 10 million litres of petrol daily, as against the 25 million litres that it earlier promised to produce.

In September, The PUNCH also reported that dealers imported about 141 million litres of PMS following a hike in the pump prices of petrol produced by the Dangote Petroleum Refinery and released by the Nigerian National Petroleum Company Limited.

They said the fair market price following the full deregulation of the downstream oil sector by the government allowed room for PMS imports.

An analysis of the document showed that the commodities landed at the Apapa port in Lagos and the Calabar port in Cross River State.

Our correspondent, however, could not confirm if any of the vessels belonged to the NNPCL or only oil marketers.

The first shipment carrying 35,000 metric tonnes of PMS allocated to the West African Port Services berthed at terminal ASPM jetty on Friday, October 18, at 10.13 am.

This was followed by 37,000 metric tonnes of fuel assigned to Intership at 3.37 pm. It also berthed at terminal ASPM jetty.

As of 3:59 pm of the same day, another vessel carrying 10,000 metric tonnes of fuel berthed. It was assigned to Peak Shipping as its agent.

At the Calabar port, a vessel carrying 10,000 metric tonnes of fuel arrived at the Eco marine terminal on Sunday at 8:02 am.

This means the four vessels brought in 92,000 metric tonnes.

Going by the conversion rate of 1,341 litres to one metric tonne, it, therefore, implies that the marketers brought in about 123.4 million litres of petrol.

When contacted in an earlier interview, the spokesperson of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, George Ene-Ita, said marketers with approved import licenses were free to import PMS.

He, however, stressed that the products must be subjected to three major tests by the agency.

“The products must be subjected to our testing protocols at the ports. The products must conform to stipulated standards before we authorise them to offload to their terminals.

“Also, before the smaller vessels bring it further inland to Nigeria, our people will fly to the place to see the product and carry out some tests to ensure the right specification is upheld.

“Tests are also done at the products’ origins. And when the products come in before they are released to the market, further tests would be conducted to ensure that they meet the specifications,” he stated.

By Olasunkanmi Akinlotan

From November 1, 2024, a one-way flight ticket from Lagos to Abuja on Air Peace is to hit N200,000.

The harsh economy has been affecting the aviation business causing airlines to increase their fares amid lamentations from passengers.

This development has forced some Nigerians to abandon flights for road transport.

Checks by our correspondent on the airfares of airlines on Monday showed that Air Peace increased its fares to N200,000 from November, the highest among the domestic airlines.

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While Air Peace has N200,000 and above on its website for a one-way trip between Lagos and Abuja, Aero is charging N94,000 to over N109,000;  Arik Air has between N104,405 to N139,292; and Ibom Air ranges between N124,000 to over N133,000.

The high airfares have left many passengers stranded at airports in recent times, as they could not secure flights to their destinations.

The busiest routes, Lagos-Abuja and Abuja-Lagos, are more impacted as many passengers find it tough to secure seats.

An official of Air Peace who does not want her name in print confirmed the development, tying the increment to the present Nigeria’s worsening economic challenges.

“If you buy a ticket and see the breakdown, you will discover that we are bleeding as an aviation company and even the prices of running the business are almost getting out of control.

“Just as we all know, all these killing taxes go to the government, and businesses especially airlines have been left with no choice other than to do this, it is what it is.”

Also, efforts to get the Chief Operating Officer of the company, Toyin Olajide, were unfruitful as she ignored both calls and text messages of enquiry put across to her phone.

A businessman, Adeleke Aina, who told our correspondent that he has been travelling by air for years added that with the rates at which “airfares are skyrocketing by the day without any clear explanation other than economy this, economy that, I will be left with no other option than take road transport as my new meanings of movement.

“This is killing everything, fuel has turned into what it is and the Federal seems unconcerned with this abnormality. I fear for this country.”

MONTREAL — Air Canada and airBaltic say they have signed a codeshare agreement that will help make it easier to fly between Canada and the Baltic states.

Under the deal, Air Canada's marketing code will be placed on 10 routes operated by airBaltic, allowing travellers to fly to Latvia, Estonia and Lithuania on a single ticket.

The routes will include airBaltic flights to Lithuania's capital of Vilnius, Latvia's capital Riga and Estonia's capital Tallinn, all from several European cities including Copenhagen, Amsterdam and Stockholm.

Meanwhile, airBaltic's marketing code will be placed on two routes operated by Air Canada from Toronto to Copenhagen and Amsterdam.

The changes are effective for travel beginning Nov. 6.

AirBaltic's marketing code will also be added to Air Canada's seasonal flights next summer from Montreal to Copenhagen and Amsterdam, as well as Toronto to Stockholm.

This report by The Canadian Press was first published Oct. 23, 2024.