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Aviation agencies lose billions to alleged fraud in traffic figures

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Differences in passengers traffic figures in the aviation sector released by relevant government agencies may have caused revenue loss in excess of N6.7 billion in 2017 alone.

While the Nigerian Civil Aviation Authority (NCAA) estimated the total number of passengers that used the airport as 11.22 million, the National Bureau of Statistics (NBS), courtesy of figures supplied by the Federal Airport Authority of Nigeria (FAAN), put the number at 13.4 million.

The difference of about 2.2 million accounts for at least N34.8 billion gap in total ticket sales and N6.7 billion in net earnings from the mandatory five per cent charge on each ticket sold that goes to the five regulatory agencies.
Keen observers of the development have alleged “consistent manipulations of traffic figures by NCAA’s consultants” in the last 10 years. The difference in net earnings, an expert argued, is one of the reasons the critical agencies are underfunded, undermining safety of airlines and air travellers.

But the apex regulatory body, NCAA, has denied any conflict in traffic figures, loss of earnings and the use of consultants to compute its figures.

Part 12 (1) of the Nigerian Civil Aviation Acts (CAA) 2006 assigns the agency the task to collect, on behalf of itself and four other aviation agencies, five per cent charge on all the passenger tickets sold by the airlines, air chartered services charges and cargo freight charges, among others.

The money is for boosting the safety of infrastructure, services and human capital development in the aviation sector. By sharing, the Nigerian Airspace Management Agency (NAMA) gets 23 per cent, Accident Investigation Bureau (AIB) gets three per cent, Nigerian College of Aviation Technology (NCAT) is allotted seven per cent and Nigerian Meteorological Agency (NIMET) gets nine per cent. The rest is allocated to NCAA.

NCAA’s executive summary of international and domestic flight operations in 2017 shows a total of 11.22 million passengers, indicating 26 per cent drop from 15.23 million passengers recorded in 2016. Of the 11.22 million, 5.53 million were inbound while 5.69 were outbound passengers. And of the outbound, 1.83 million were international while domestic passengers were 3.87 million.

Should each international passenger pay an average of N300, 000, it would amount to N549 billion in ticket sales and N27.4 billion as five per cent ticket service charge. Also, should each local passenger pay an average of N20, 000 per ticket, it would amount to N77.4 billion in ticket sales and N3.9 billion five per cent cut. The five per cent ticket charge will therefore be N31.3 billion.

The NBS air transportation data for 2017 show a total of 13.4 million passengers, indicating eight per cent drop from 14.6 million recorded in 2016. Of the 13.4 million, 6.69 million were inbound while 6.7 million were outbound passengers. And of the outbound, 2.23 million were international while domestic passengers were 4.46 million.

If each international passenger paid an average of N300, 000, it would amount to N669 billion in ticket sales and N33.5 billion as its five per cent. If each local passenger paid an average of N20, 000 per ticket, there would be N89.2 billion in ticket sales and N4.5 billion five per cent cut. The five per cent total would, therefore, be N38 billion.

The disparities in NCAA and NBS 2017 figures, therefore, amount to N6. 7 billion, using average prices and without considering first class and business class passengers that paid higher.

The Spokesman of the NCAA, Sam Adurogboye, denied disparities in figures. He advised the public and all aviation stakeholders to disregard “the misguided attempt to discredit statistical data emanating from the authority”.

Adurogboye said the NCAA stood by its estimates because “the figures are verifiable and were harmonised by all relevant aviation parastatals, government agencies and handling companies.”

He explained that the five per cent charge on tickets was not based on the total sold, but only on flown tickets. This is unlike FAAN that computes its passenger service charge on all categories of passengers flying through the airport.

Read More: Travel agencies chart path to aviation, tourism growth

“Furthermore, five per cent TSC applies to all tickets originating from Nigeria with the exclusion of diplomats, tickets sold offshore, infants tickets and staff tickets. These are all classified as non-taxable tickets.

“The authority states categorically that there is no consultant(s) commissioned to collect its revenue on its behalf. Payments have since been automated while the processing and data analysis for both international and domestic airlines are handled by NCAA staff.”

Secretary General of the Aviation Safety Round-table Initiative (ASRTI), Group Capt John Ojikutu (rtd), said the disparities in figures were not new.

Ojikutu recalled that the NCAA recorded passenger traffic figures of 11.4 million and 15.3 million for 2015 and 2016. The figures are inconsistent with 15.2 million and 14.2 million recorded by FAAN. He described the figures as “misleading and questionable.”
According to him, records from government, private operators and international organisations in 2016 and 2017 showed the earnings on international passengers ticket sales alone to be more than what NCAA recorded for the same years.

Ojikutu said the difference in figures, should be probed by the Federal Ministry of Aviation, National Assembly, Economic and Financial Crimes Commission (EFCC) and the Federal Inland Revenue Service.

“The consequences of the exploitation of the earnings were probably the sources of the insufficient funds made available to some agencies from the share of the TSC/Cargo Service Charge, and possibly the reason some facilities needed to assist aircraft to land at night and in inclement weather were not calibrated.

“The non-calibration of these landing aids that require periodic maintenance was the reason for many flights cancellations in 2016 and 2017 during the inclement harmattan weather when these landing facilities were most needed,” Ojikutu said.
Guardian

EVENTS

Nigeria Selects “Mai Martaba” As International Feature Film (IFF) Contender For 2025 Oscars

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Mai Martaba as international feature film contender | fab.ng

The Nigerian Official Selection Committee has selected the epic Hausa film, Mai Martaba as its contender for the International Feature Film (IFF) category at the 97th Academy Awards. The Committee announced in an official statement that they selected the film to contend for the Oscars because of its theme and visual appeal.

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MUSIC

Don Jazzy Announces Tega Oghenejobo As The New President Of Mavin Records

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Tega Oghenejobo As The New President Of Mavin Records | fab.ng

On Tuesday, October 29, 2024, Michael Collins Ajereh, the visionary founder of Mavin (Records) Global, better known by his stage name Don Jazzy, announced a significant expansion within the company. He announced Tega Oghenejobo as the new president of Mavin Records.

Tega has been an integral part of Mavin’s journey. Now, his position as President has elevated his status in the company. In addition, he has been in the existing role of Chief Operating Officer (COO).

Don Jazzy expressed his admiration for Tega’s passion and resilience. He acknowledged his ability to spot these qualities in Tega from the early stages of their professional relationship.

He said,

I’m proud to announce @TEGAMAVIN expanded role as President and COO of Mavin. I am often praised for being able to spot and raise superstars, but I can proudly say the most genius thing I have done in my life was being able to spot the passion and resilience in Tega.”

“From the early days, I’ve watched him be curious about the business, build teams, develop executives, and ensure our talents have sustainable careers from the start. His commitment to growing Mavin and shaping the future of African music has been relentless, and I’m confident that with him in this role, we’ll continue to break new ground and achieve even bigger milestones for our artists and company,” he added.

Accepting the appointment gracefully, Tega Oghenejobo said,

“I’m honored to step into this new role as President & COO of Mavin Records. It means embracing new challenges, setting new goals, and reaching new heights. Thank you, Supreme Leader @donjazzy, for your unwavering belief and trust in me to lead the Mavin team.”

Check here for more updates.

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BUSINESS

Moniepoint Reaches African Unicorn Status With $110 Million Funding Boost

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Moniepoint reaches African unicorn status | fab.ng

Moniepoint Inc., a leading fintech company in Africa, has successfully raised $110 million in equity financing. This is to power the dreams of millions of businesses and their customers across the continent and the diaspora.

The Series C investment was led by Development Partners International’s African Development Partners (ADP) III fund. It is a premier fund focused on Africa.

Additionally, new investors joined the funding round. This includes a leading African private equity firm, Google’s Africa Investment Fund and Verod Capital. Existing investor, Lightrock, a global impact firm, also participated.

Tosin Eniolorunda and Felix Ike founded Moniepoint (formerly known as TeamApt) in 2015. Initially, it focused on providing infrastructure and payment solutions for banks and financial institutions. It has since grown into Nigeria’s leading business banking provider, trusted by millions of businesses.

The capital raised will be used to accelerate growth for Moniepoint across Africa.

Further, that entails building an all-in-one, seamlessly integrated platform for African businesses of all sizes. This platform will include services such as digital payments, banking, foreign exchange (FX), credit, and business management tools, making it a one-stop shop for business solutions.

Moniepoint’s exceptional contributions to Nigeria’s financial services sector have been widely acknowledged, along with its enviable track record of serving customers across Africa.

Each month, Moniepoint processes over 800 million transactions, with a monthly total value exceeding $17 billion, all while operating profitably.

Tosin Eniolorunda, Founder and Group CEO of Moniepoint Inc., expressed his excitement about the successful funding round and the company’s plans to expand its offerings and reach across the African continent.

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