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LCCI Raises Concern On Hike Price Of Aviation Fuel, Urges FG To Take Immediate Steps To Resolve Crisis

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This action also has implications for economic growth, job creation, and revenue generation for the government

LCCI STATEMENT ON RESOLVING NIGERIA’S AVIATION SECTOR CRISIS

Olushola Okunlade Writes

The Lagos Chamber of Commerce and Industry (LCCI) has raised concerns about the hike in the price of aviation fuel because of the systemic importance of air travel for the conduct of trade and commerce across borders.

LCCI made a statement on Monday on resolving Nigeria’s aviation sector crisis to curb the menace in air transportation.

“The crisis in Nigeria’s aviation industry has reached a problematic level as domestic airlines are faced with an astronomical hike in the price of aviation fuel, with the commodity rising from N300 per litre to over N800 per litre within five months. The challenging operating environment has led to an unprecedented increase in airfares and continuous delays and flight cancellations by domestic airlines. The Federal Government has stated that there are no immediate solutions to the crisis currently rocking Nigeria’s aviation sector, claiming the issues are global.”

“Recently, the umbrella body for domestic airlines in the country, Airline Operators of Nigeria (AON), notified air transport passengers that the sector was experiencing a significant crisis. This crisis was (and still is) an acute scarcity of aviation fuel (Jet A1), which has caused intermittent flight delays and cancellations. Some airlines have been forced to shut down operations due to the harsh operating environment. With the rising insecurity that has bedeviled our road transport system, a safer option is air transportation. This portends challenges around the movement of goods and business conduct across locations. The Government cannot afford to allow this sector to suffer from these crises. Operators in the industry are faced with a double whammy issue of foreign exchange scarcity and the high cost of aviation fuel, Jet-A1, which is a significant cost component in airline operations.”

“We have noted that from the beginning of the year, aviation fuel scarcity has remained a persistent and unresolved problem that has impacted the cost-of-service delivery, as reflected in the rising cost of flights. Aviation fuel prices have risen from an average of N400/litre as of February to about N800/litre in recent times. With the business community not sure of any intervention to provide respite, the woes of the airline operators may be far from over. The earlier intervention by the National Assembly alongside the Central Bank of Nigeria (CBN) that saw the Nigerian National Petroleum Company Limited (NNPC) supply Jet-A1 at a discounted price of N480/litre may not have achieved the desired results. The sector has continued to suffer from persistent shocks and disruptions to operations.”

The Chamber is concerned about the aviation crisis because of the systemic importance of air travel for the conduct of trade and commerce across borders. The organised private sector urges the Government to take immediate steps toward resolving the crises in the aviation sector. Air transportation is considered one of the safest channels considering the despicable level of insecurity in the country. Hence, resolving the continued fuel crisis facing the safest transport channel is critical for the business community.

While the Government tackles terrorists, bandits, and kidnappers who have taken over major highways in the country, the Government must immediately consider involving the CBN and the NNPC in making FOREX available for aviation fuel imports. However, the more sustainable solution would be refining Jet-A1 fuel for our local consumption. While we acknowledge that the current energy crisis is real and global, it is aggravating in Nigeria because we do not produce the oil.

The aviation sector qualifies for targeted financing to facilitate economic activities in the country, boost economic growth and avert an imminent recession.

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Dangote Boosts Abuja Trade Fair

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World Water Day: Dangote, Others Make Case For GroundWater Protection

Olushola Okunlade Writes

The Dangote Group has been described as a significant premium player as over 300 corporate exhibitors are participating in the 17th Abuja International Trade Fair (AITF) that is expected to be declared open by President Muhammadu Buhari on Friday.  

Speaking to newsmen, the Director-General of the Abuja Chamber of Commerce and Industry (ACCI), Ms. Victoria Akai said: “As a member of ACCI, the Dangote Group further strengthens the position of ACCI in implementing business activities and advocating for business-friendly policies.

”The DG said the Dangote-ACCI partnership is strategic and geared towards showcasing made-in-Nigeria products, which will help inform prospective exporters about the available opportunities and processes.  

Ms. Akai said the company had been a significant sponsor of the Abuja International Trade Fair, including this year’s Trade Fair. In the same vein, the President of ACCI, Dr. Al-Mujtaba Abubakar, told newsmen that the theme for this year’s exhibition: “Creating an Export Ready Market through SMEs Digitization,” offers a wide range of opportunities for Small and Medium Enterprises to ginger their performance, and especially in relation to the non-oil sector.  

He said: “The Abuja International Trade Fair, since its inception, has served Nigeria as a trusted global trade destination and a potential market for over 50,000 consumers.”

The 17th AITF is scheduled to hold between Friday, September 30 and Sunday, October 9, 2022, at ACCI Abuja International Trade Fair Complex.  

The Dangote Group’s Executive Director of Government and Strategic Relations Engr Mansur Ahmed said the partnership with ACCI offers the company the opportunity to display its numerous innovative products while contributing its quota to the Nigerian economy through Trade Fairs and expos.  

He said the President of the Group Alhaji Aliko Dangote is passionate about developing the Nigerian economy, exporting made-in-Nigerian goods, earning foreign exchange, and creating jobs for the populace. Engr Ahmed said the company is desirous of entering into any strategic partnership that will set the country on the path of rapid growth and development.  

Aside government, the Dangote Group is the second biggest employer of labour in Nigeria.  

A statement by the Corporate Communications Department of the company said a special help desk has been set up at the company’s pavilion to respond to queries while urging participants to leverage the numerous innovative products which include the: Dangote Fertiliser, Dangote Sugar, Dangote Cement, Dangote Salt, and lots more.  

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PhotoNews: LCCI President Visits Association Of German Chambers Of Commerce And Industry (DIHK) In Berlin, Germany

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LCCI President Visits Association Of German Chambers Of Commerce And Industry (DIHK) In Berlin, Germany

Olushola Okunlade Writes

The President of the Lagos Chamber of Commerce (LCCI), Dr. Michael Olawale-Cole, CON, has paid a courtesy visit to the Association of German Chambers of Commerce and Industry (DIHK) in Berlin, Germany.

Asiwaju Dr. Michael Olawale-Cole, CON met Mr. Heiko Schwiderowski, Director of the Africa section of the Association of German Chambers of Commerce and Industry (DIHK) during a courtesy visit to the Association of German Chambers of Commerce and Industry (DIHK) in Berlin, Germany on Thursday, September 28, 2022.

LCCI President Visits Association Of German Chambers Of Commerce And Industry (DIHK) In Berlin, Germany
President of the Lagos Chamber of Commerce (LCCI), Dr. Michael Olawale-Cole, CON, and Mr. Heiko Schwiderowski, Director Africa Section of the Association of German Chambers of Commerce and Industry (DIHK) during a courtesy visit to the Association of German Chambers of Commerce and Industry (DIHK) in Berlin, Germany on Thursday, September 28, 2022.
LCCI President Visits Association Of German Chambers Of Commerce And Industry (DIHK) In Berlin, Germany
President of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Michael Olawale-Cole, CON, and Mr. Edgar Zedler Head of Regional Affairs NUMOV/ German Near and Middle East Business Association during a visit to the Association office in Berlin, Germany on Thursday, September 28, 2022.

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The Impact Of E-commerce On Supply Chain

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The Impact Of E-commerce On Supply Chain

….as Jumia leads the fast and reliable digital market hub

Olushola Okunlade Writes

The rise of E-commerce and the digital marketplace has changed the composition of consumers buying behavior and expectations, as consumers now expect fast, free shopping and competitive pricing.

This demanding delivery schedule challenges traditional logistics and supply chain models, and companies are now forced to adjust their strategies to provide the low-cost and on-demand delivery service that consumers now demand.

Technological advances in many aspects of our lives have resulted in buying, selling, and other forms of transactions being executed online. Once the consumer makes an online purchase, the work begins to transport the products from the seller to the consumer – and that’s where the logistics sector comes into play.

Statista claims that the logistics sector is one of the pillars of global trade, valued at more than 5.7 trillion euros.

In Nigeria, the logistics and supply sector is growing exponentially. According to the 2018 Logistics & Supply Chain Industry Report, Nigeria’s logistics industry was worth 250 billion naira ($696 million) as of 2018, which represents an increase of 50 billion naira ($140 million) from 2017 statistics. This value has increased over the years. The industry is currently expanding because of improved aviation and rail infrastructure, stronger international relations, expansion in the manufacturing and export industries, and continuous e-commerce growth.

E-commerce and the Supply Chain Sector

The Impact of E-commerce on Supply Chain

The supply chain links numerous parties and organisations, including consumers, enterprises, merchants, financial, and information flows. To deliver high-quality services and products, managing various groups and activities requires a method that can effectively and efficiently integrate interactions among the entities, particularly when organisations use resources from different regions of the world.

The supply chain has grown more adaptable and effective as a result of e-commerce. It has given businesses fresh and creative ways to connect with consumers. E-commerce also has made it possible for companies to offer goods directly to consumers instead of through conventional retail channels.

The increase in e-commerce adoption has made logistics services a necessary component of daily living in Nigeria’s major commercial cities. Access, cycle time, dependability, and cost of logistics are directly impacted by the state of the available infrastructure and the degree of integration. High-performance government agencies, funding, and industry expertise are also essential. Therefore, logistics is a primary marker of economic advancement as represented in trade facilitation and company competitiveness.

How E-commerce is Revolutionising the Supply Chain Sector

The Impact Of E-commerce On Supply Chain

E-commerce has several advantages in the supply chain sector. Firstly, it offers real-time data on inventory levels and order status. This lowers the possibility of stockouts or overstocks by helping businesses to make better decisions about when to produce or order products.

Collaboration between businesses and their suppliers and consumers is also made simpler by e-commerce. For instance, a business can quickly place orders and submit estimates to suppliers. This lessens the amount of paperwork required and helps to speed up the ordering process.

A company like Jumia in the supply chain sector, through e-commerce, connects vendors with consumers across a broad delivery area. As a result, local vendors and international brands can effectively reach more consumers across the country using the platform. In addition, consumers’ shifting preferences, lifestyles, and behaviours have led companies like Jumia to introduce quick commerce to make online shopping more convenient than ever before.

With speed and convenience becoming more important than ever, Jumia opened its logistics services to third parties. Its logistics network smoothly connects hundreds of logistics partners across Nigeria, from small business owners to significant logistics service providers. It offers merchants the advantage of a distributed and scalable logistics service and gives consumers quick access to the products they desire.

What Does the Future Hold for Logistics?

The Impact Of E-commerce On Supply Chain

Technology remains a strategic imperative for supply chain organisations. In the next three to five years, we will see an increase in the adoption of digital supply chain technologies, including those that improve human decision-making.

It is predicted that the future of the supply chain sector will be defined by data, analysed by artificial intelligence, and driven by machines. Gartner has predicted that by 2023, AI techniques will be embedded across 50% of all supply chain technology solutions.

Already, Jumia Logistics is leading the forefront, as the company has invested in machine learning and several data science techniques. This has helped to offer more precise delivery times based on multiple factors, and even to predict the ideal routes that delivery agents can rely on to meet their targets. Consequently, online consumers will have better experiences on the mobile app with greater certainty about the progress of their orders from purchase to delivery.

Furthermore, the company’s move into drone delivery with its recently announced collaboration with Zipline, the world’s largest instant delivery service, is another game changer for the industry. Using the latest instant logistics technology, Jumia will be able to offer consumers living in rural or remote areas on-demand delivery of the products they need.

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