SaharaReporters learnt that the aircraft touched down at Nnamdi Azikiwe International Airport on Sunday evening, after departing from EuroAirport Basel-Mulhouse-Freiburg in France at 4:16 pm and landing in Abuja at 8:29 pm.

President Bola Tinubu will embark on a trip to France on Monday, August 19, departing from Abuja, the nation’s capital.

The President will return to the country after his brief work stay in France, a statement signed by Chief Ajuri Ngelale, Special Adviser to the President on Media & Publicity said on Sunday.

The President will travel on the newly acquired luxury Airbus A330 aircraft, which landed at the Nnamdi Azikiwe International Airport in Abuja at 8.29 pm on Sunday.

SaharaReporters reported earlier on Sunday that the aircraft touched down at Abuja airport on Sunday evening, after departing from EuroAirport Basel-Mulhouse-Freiburg in France at 4:16 pm.

This followed the release of the aircraft, which was one of the three presidential jets recently confiscated by a French court in favour of a Chinese firm over a dispute with Ogun State Government.

SaharaReporters reported on Friday that Zhongshan Fucheng Industrial Investment Co. Limited had announced the release of one of the three presidential aircraft belonging to Nigeria, which had been detained in France.

The Chinese company characterized the release of the aircraft as a goodwill gesture, citing the upcoming meeting between President Tinubu and French President Emmanuel Macron.

The company stated that it recognized the significance of the aircraft for the diplomatic engagement and took steps to ensure its availability, thereby facilitating the meeting.

In July, SaharaReporters reported the aircraft was in France and had been spotted at an advanced stage of preparation. The plane had been assigned a tail registration featuring the seal of the President of the Federal Republic of Nigeria and was ready for delivery.

The aircraft in question is an ACJ330-200, VP-CAC (msn 1053), registered as 5N-FGA.

It features a bedroom with an en-suite bathroom at the front, followed by an office and a conference and dining room. It also has an airline-style first-class and economy seating at the rear.

SaharaReporters on June 28 reported that the Nigerian government planned to spend over N150 billion on a new presidential jet, a move that sparked controversy.

The proposed expenditure came under scrutiny as the nation grappled with economic challenges and record inflation.

The Airbus A330 aircraft, was reportedly in possession of a German bank, and was acquired following a default on a multi-million-dollar loan by an Arab prince and businessman.

The report which is based on a forecast from NNPC, obtained by the newspaper, indicated that the total petrol subsidy expenses from August 2023 to December 2024 will amount to N6.884 trillion, leaving the company unable to remit N3.987 trillion in taxes and royalties to the federation account.

Despite many denials by the Nigerian government on non-payment of fuel subsidies, President Bola Tinubu has given approval to the Nigerian National Petroleum Company (NNPC) Limited to use the 2023 final dividends owed to the federation to cover the cost of petrol subsidies, BusinessDay reports.

The president reportedly approved a halt on the payment of 2024 interim dividends to the federation to help boost NNPC’s cash flow.

The NNPC informed the president that due to the subsidy payments, it is currently unable to pay taxes and royalties into the federation account, referring to this as a “subsidy shortfall/FX differential”.

The report which is based on a forecast from NNPC, obtained by the newspaper, indicated that the total petrol subsidy expenses from August 2023 to December 2024 will amount to N6.884 trillion, leaving the company unable to remit N3.987 trillion in taxes and royalties to the federation account.

The exact number of dividends that would be withheld or put on hold could not be verified at the time of filing this report.

Air Peace: We’ll respond to Nigeria’s threat to bar our carriers soon –UK govt

•No airport slot allocation in Nigeria-UK BASA, findings show

On August 1, 2024, Nigeria’s Aviation Minister, Festus Keyamo, issued a bold ultimatum to the United Kingdom government, setting the stage for a potential standoff between the two nations in the aviation sector. In his emphatic statement, Keyamo made it clear that unless the Nigerian airline, Air Peace, is granted the much-coveted landing slots at London Heathrow Airport, British Airways and Virgin Atlantic could face the possibility of being denied access to Nigeria’s major international gateways—Lagos and Abuja.

The minister’s warning is contained in a letter to UK Transport Secretary, Louise Haigh and reflects Nigeria’s growing determination to ensure fair treatment for its airlines on the global stage, emphasising that the nation’s aviation sector can no longer be sidelined in key international markets, especially as Air Peace has been forced to fly to Gatwick Airport.

Keyamo’s stance signals Nigeria’s readiness to assert its position, seeking reciprocity in international aviation agreements and standing firm against what is perceived as unequal access to lucrative routes.

This move, if acted upon, could disrupt the long-standing operations of British Airways and Virgin Atlantic, two of the most prominent international carriers servicing Nigeria. At the heart of the issue is Nigeria’s quest for equity and access to competitive markets, a challenge that Air Peace, one of Nigeria’s leading carriers, has faced in securing operational rights at one of the world’s busiest airports.

Keyamo told his UK counterpart giving Air Peace Gatwick airport was a blatant violation of the Bilateral Air Services Agreement (BASA) between both countries, which promotes reciprocal rights for airlines.

Keyamo said that while British carriers enjoy unrestricted access to Nigeria’s tier one airports, which are in Abuja and Lagos, Air Peace has been unable to obtain slots at Heathrow. He demanded immediate action to rectify the situation, warning that Nigeria will not tolerate the unfair treatment of its national carrier.

No response from the UK government

Daily Sun reached out to UK’s Transport Secretary, to verify if she has received Keyamo’s letter and what the UK government intends to do to resolve the dispute. In response, an email was sent by her researcher, Mr. Henry Smith, saying the Daily Sun’s request has been transferred to the Department of Transport. Daily Sun then sent a Freedom of Information request to the UK’s Department of Transport and the department acknowledged receipt of the request, saying a response will be issued in due time.

Daily Sun also contacted the Minister’s office to verify if there has been a response from the UK government on the issue and his Special Adviser on Media, Mr. Tunde Moshood, said none has been received yet.

Airport slot allocation

Following the demands made by the Minister in his letter, Daily Sun sought to verify the issues raised. This paper analysed the 38-page Nigeria-UK BASA signed in 1988, which is administratively still in force and it revealed a very significant oversight: the absence of provisions addressing airport slot allocation. Though the aspect of frequencies was clearly spelt out in the BASA, airport slot alocation wasn’t. There has been no change of rules since the signing in 1988 and Daily Sun understands that the omission of airport slot allocation may likely be attributed to the non-scarcity of slots at the time of the agreement’s drafting. The allocation of slots at Heathrow airport is managed by Airport Coordination Limited (ACL), an independent slot coordinator in which the UK government has no input and is subject to the International Air Transport Association (IATA) guidelines.

An industry stakeholder who prefers anonymity, echoed Daily Sun’s findings, telling the paper that the Nigeria-UK BASA designates city destinations rather than specific airports. The stakeholder said Heathrow cannot be explicitly mentioned in the agreement as it falls outside the purview of the Department of Transport and that given the UK government’s lack of involvement in airport slot allocation, Air Peace must independently address this issue.

“The BASA specifies city destinations not particular airports. In the case of the UK, this means a bilateral agreement will never specify Heathrow since this is not in the remit of the department of transport. The UK government plays no part in airport slot allocation, so, the onus is on Air Peace to fight this battle. The politics is complicated. It is a matter of fact that considerable debt for Nigerian airlines that operated in London remain as they still owe large sums of money to UK airports. By failing to acknowledge the truth of our circumstances and also the fact that it is our own fault that we are not taking full advantage of the BASA, we do ourselves no favours, “ the stakeholder said.

Daily Sun can also report that there was a review of the BASA in 2008 which allowed for multiple airlines from each country and a substantial number of weekly flights. The UK and Nigeria may designate up to four airlines each and frequencies are restricted to 21 passenger services per week to each side; UK airlines – between any points in the UK and Abuja, Kano, Lagos and Nigerian airlines, between any point in Nigeria and London. While UK carriers have taken full advantage of these provisions, Nigeria’s absence of a national carrier has significantly hindered its ability to capitalise on it. To compensate, domestic carriers are often designated as ‘flag or national carriers’ for the purpose of fulfilling these agreements like in the case of Arik Air.

However, the 2003 International Civil Aviation Oganisation (ICAO) conference highlighted the growing importance of airport slot management due to capacity constraints at major airports. The conference recommended addressing slot-related issues and suggested prioritising countries with non-slot-constrained airports. The body said the principles of fairness, non-discrimination, transparency, and stakeholder consideration should be prioritised for any slot allocation system.

Way forward

Industry experts who spoke to Daily Sun said the minister’s letter to his UK counterpart is a bold move. Their argument is that by limiting Air Peace to Gatwick, while British carriers enjoy access to Lagos and Abuja, the UK is effectively hindering the Nigerian airline’s commercial viability and competitive position. They however pointed out that a collaborative approach involving the aviation authorities of both countries, Heathrow Airport, and Air Peace is essential to resolve this issue. Aviation expert, Amos Akpan said that while potential disruptions to travelers and businesses are a concern, the Minister’s actions aims to level the playing field and ensure fair competition between Nigerian and British carriers. While Alex Nwuba says a resolution that secures Heathrow slots for Air Peace is crucial for the growth of the Nigerian aviation industry.

Akpan said the Minister’s proposal to relocate British Airways and Virgin Atlantic operations away from Lagos and Abuja should be carefully considered because of its potential consequences. He advised that contingency plans to address the diplomatic tensions likely to arise from such a decision must be developed. Additionally, he said, strategies to minimise the inconvenience for passengers and businesses connecting to destinations beyond London Heathrow should be prioritised.

“Our minister of aviation is well within his role by writing to the UK transportation secretary threatening to stop BA and Virgin from operating to Lagos Abuja unless Air Peace is given slots at Heathrow and he has a strong case. The Lagos and Abuja traffic is a good negotiation tool that will impact BA and VA dislocation on this route. By logic it is also the Heathrow traffic that will make Air Peace gain commercial viability on the route.

“The best option is for UK CAA, Nigerian CAA, Heathrow ACL, and Air Peace to meet and work out solutions. At worst, it may involve extra financial costs in the interim. Limiting Air Peace to Gatwick while BA and VA operates Lagos and Abuja and Heathrow violates the principle in the BASA between the UK and Nigeria. This restriction to Gatwick harms Air Peace potential commercial viability on the London route. It does not position Air Peace to be competitive with BA and VA on the route. Reciprocity is the cardinal principle in BASA. If the BASA is not specific about Heathrow, Lagos and Abuja as the designated entry ports for carriers between the UK and Nigeria, then our minister can use the reallocation to other airports in Nigeria.

“This action may throw up unpleasant consequences like a diplomatic row. The worst may be discomfort to travelers and traders that use London Heathrow airport as their gateway and transit. But they are the reason for the struggle in the first instance. The minister’s action will pressure the British aviation authorities to also pressure the Heathrow airport slot coordinators to find slots for Air Peace,” Akpan said.

Nwuba told Daily Sun that the Minister’s initial public threat to demote British Airways to a lower-tier airport was a strategic misstep, which may create a negative atmosphere for constructive dialogue. He said however that the Minister can achieve his goals through persistence and he must maintain a firm stance as the UK may adopt a tough negotiating position.

“The Minister can get what he wants by being persistent and unrelenting but he must stick to his guns. The UK will also play hardball with him but Nigeria is a very important market for UK carriers. He however shouldn’t have started with the supposed threat of banishing BA to a low tier airport and publicly because it sets a negative tone to begin serious discussions,” he said.

The report that the Nigerian National Petroleum Company Limited (NNPCL) has set an open-ended time that the Port Harcourt Refining Company Limited will produce refined petroleum for local consumption has dampened the excitement among Nigerians that this year the scarcity of petrol would end. The report countered the hope that, after five missed timelines, petrol would flow from the refinery to dispensing stations across Nigeria before the end of this month. Now that we have entered into the last weeks of August, the company has said ambiguously that the process of producing petrol from the refinery was ‘on course.’

The Port Harcourt refinery has the capacity to refine 210,000 barrels of crude oil per day.

Such position demonstrates how the Ministry of Petroleum Resources and the NNPCL have been taking Nigerians for a ride by regularly extending the goal post for the renovation and revival of the government-owned refineries. Though, Nigerians have viewed with curiosity the fact that the country’s four refineries in Port Harcourt, Warri and Kaduna have all failed to refine crude oil at the same time since 2019, they had condoned the regular pledges by the public and civil servants in the sector that the country would begin to produce refined products in recent years.

For instance, in 2017, Emmanuel Ibe Ukachukwu, then Minister of Petroleum Resources under President Muhammadu Buhari, vowed to resign if Nigeria did not begin to refine crude oil by 2019, and export refined products by 2020. This did not happen. Instead, all the nation’s four refineries were shut down in 2019 because they did not have the capacity to refine products, though without fail the country paid huge sums for their annual Turn-Around Maintenance (TAM).

That same year, the federal government approved $1.5 billion for the repairs of the Port Harcourt Refinery, and the contract was awarded to an Italian firm, Maire Tecnimont. At the time, the Minister of Petroleum Resources, Timipreye Sylva, had said specifically that “Our objective is… to ensure that in the next few years, Nigeria stops fuel importation. From what we have seen here… Port Harcourt Refinery will come on board by the end of the year (2019). The first phase is to be completed in 18 months, which will take the refinery to a production of 90 per cent of its nameplate capacity… the second phase would be completed in 24 months and the third in 44 months.”

With such huge funding, hopes were raised that products would flow from the Port Harcourt Refinery before the end of the Buhari administration. The NNPCL Group Chief Executive Officer, Mele Kyari, for instance, told Nigerians that by the first quarter of 2023, the refinery would produce petrol. It did not happen. He later promised that petrol would be produced in the second quarter. That promise was not realised.

In August last year, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, said the Port Harcourt Refinery would recommence operations in December. He made the promise during an inspection tour of the rehabilitation work at the plant. Based on that, he promised that Nigeria would stop petrol imports in February 2024.

As the December 2023 deadline failed, and Nigerians expected that in the early part of this year, NNPC Ltd would make good its promise. It did not happen. But while speaking before the Senate in July this year, Kyari said: “I can confirm to you, Mr. Chairman, that by the end of the year, this country will be a net exporter of petroleum products. Specific to NNPC refineries, we have spoken to a number of your committees, and it is impossible to have the Kaduna Refinery come into operation before December; it will get to December, both Warri and Kaduna, but that of Port Harcourt will commence production early August this year.”

From the foregoing, it is apparent that either the NNPC Ltd has failed to keep the contractors on their toes to keep to the timelines set for the completion of the Port Harcourt Refinery or that those who benefit from the shameful importation of petroleum products into Nigeria want to continue to extend the regime. But this is totally unacceptable to Nigerians who are at the receiving end of the chaotic and hide-and-seek activities in the midstream and downstream sector of the nation’s oil and gas sector. The high cost of the pump price of petroleum products and the frequent scarcity have both financial and economic consequences for the people. No other oil-producing country in the world faces this embarrassment. And yet, the federal government is reluctant to whip anyone into line.

The managers of the Nigerian oil and gas sector must stop taking Nigerians for a ride. It is obvious that the truth about the high cost of refined products, collapse of our refineries, fuel importation, non-repair of the refineries, and oil theft is still being concealed by those who are bent on making life extremely difficult for Nigerians. We hold both the Minister of Petroleum, Lokpobiri and NNPC Limited’s GCEO Kyari, to their promises that locally-produced petrol will be sold in August 2024. This is August 2024. There should be no further extension of the delivery date.