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Uganda Airlines starts direct routes from Nigeria

Published

3 days ago

September 16, 2024

Uganda Airlines has begun offering direct service to Entebbe, located in central Uganda, from Abuja, Nigeria’s capital. According to the airline, the new route should improve connectivity, shorten travel times, increase trade and tourism between the two nations, and give travellers a quick and convenient way to get between West and East Africa.

The airline announced this at the recent inauguration held at the Nnamdi Azikiwe International Airport in Abuja.

Ambassador Nelson Ocheger, the Ugandan High Commissioner to Nigeria, emphasised the significance of the enhanced connectivity.

“I believe that Nigerians and other passengers will be impacted in a variety of ways by this flight and the ones that will follow.

“First and foremost, it is going to reduce the time spent to move from Abuja to Entebbe. The ministers mentioned that it took them three and a half hours to move from Entebbe to Abuja. Secondly, it is going to reduce the cost of transport,” he explained.

Ocheger went on to say that the direct flight would make it easier for cargo to transit between the two nations, boosting trade and commercial expansion.

“The volume of trade will certainly increase, and when the volume of trade increases, the people who produce those goods and the people who are providing those services will grow their businesses. They will employ more people, and those employed will have incomes in their pockets,” he added.

The Ugandan ambassador addressed worries about possible drug and people trafficking and stated that both nations have strong protocols in place.

“The Federal Republic of Nigeria has a robust system to identify wolves amongst the sheep, and the same with Uganda. Given the systems that exist in both countries, this is something that will be a work in progress. We can identify wrong elements who are moving from one country to another,” he assured.

Adedayo Olawuyi, the Chief Commercial Officer of Uganda Airlines, also disclosed the inaugural fares, which will be available for the next several months.

“As of today, tickets between Abuja and Entebbe in economy class will cost you just $600, and in business class, $1,665,” he stated.

Hon. Fred Byamukana, Uganda’s Minister of State for Transport, commended the friendly ties that have existed between Nigeria and Uganda for a long time.

“We have been living as brothers and sisters. This bridge we have built is one to maintain our friendship. In terms of business, this helps you to grow economically,” said Byamukana, underscoring the economic benefits of the new flight route.

Hassan Etibunu, the director of the Ministry of Aviation, continued, saying that both Uganda and Nigeria would benefit from the increased airline connectivity. Travelling to Uganda or East Africa used to be difficult, but this flight will make the trip shorter and enable smooth contact between the two countries.

Etibunu underlined that the direct flight will increase commerce opportunities by lowering freight costs and simplifying the process.

Related Topics:Abuja Featured Nigeria Uganda Airlines

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Nigeria’s central bank issues fresh guidelines for ‘Ways and Means’ to govt

Published

11 hours ago

September 18, 2024

Ifeoluwa Dada

The Central Bank of Nigeria (CBN) has issued new guidelines on Ways and Means which limit Ways and Means Advances to the federal government to 5% of the previous year’s revenue collection.

The apex bank made the position known in its fiscal year 2024-2025 monetary, credit, international trade, and exchange policy guidelines.

“Ways and Means Advances shall continue to be available to the Federal Government to finance deficits in its budgetary operations to a maximum of 5.0 per cent of the previous year’s actual collected revenue. Such advances shall be liquidated as soon as possible and shall in any event be repayable at the end of the year in which it was granted,” it said.

The Treasury Single Consideration (TSA) system requires these advances to take into consideration Ministries, Departments, and Agencies (MDAs) sub-accounts, which are linked to the Consolidated Revenue Fund.

The federal government’s consolidated cash situation will be more precisely reported, improving public financial management openness and resource availability. The CBN also stated that Ways and Means Advances must be repaid by the end of the fiscal year they were awarded, encouraging short-term borrowing.

In the Nigerian context, “ways and means” refers to the Federal Government’s ability to borrow money from the Central Bank of Nigeria (CBN). This means that the government may use “ways and means” to meet short-term needs or emergencies, which is why the CBN is referred to as the “lender of last resort.”

Over the past seven years, the facility had grown 2,900% to an extraordinary N23.7 trillion by 2023. This fast surge, which exceeded legal restrictions, increased inflation and Nigeria’s debt.

The CBN Act allows the bank to grant temporary advances to the federal government for budget revenue deficits at a rate deemed appropriate, but the total amount of such advances “shall not at any time exceed 5% of the previous year’s actual revenue of the Federal Government.”

In addition, it stipulates that “All advances shall be repaid as soon as possible and shall, in any event, be repayable by the end of the Federal Government financial year in which they are granted and if such advances remain unpaid at the end of the year, the power of the bank to grant such further advances in any subsequent year shall not be exercisable, unless the outstanding advances have been repaid.”

The Senate and House recently enacted a bill to increase the CBN’s federal Ways and Means borrowing ceiling. The upper chamber of Nigeria’s legislature boosted the central bank’s loan capacity to the federal government from 5% to 10% of annual income.

Yemi Cardoso, CBN governor, announced earlier this year that the bank would stop making Ways and Means advances to the federal government until existing loans were returned. He said this is one of the bank’s key strategies to handle the country’s economic issues.

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Kenya, IMF discuss economic and fiscal issues

Published

17 hours ago

September 18, 2024

Ifeoluwa Dada

The International Monetary Fund (IMF) said on Tuesday that it had had productive discussions with Kenya’s government on its economic and fiscal goals after widespread protests prompted it to shelve tax rises.

In June, President William Ruto abandoned this year’s finance bill, leaving the deeply indebted government with a larger budget deficit, unpaid payments, and a delay in IMF funding.

“We remain fully committed to supporting the authorities in their efforts to identify a set of policies that could support the completion of the reviews under the ongoing program as soon as feasible,” the IMF said in a statement.

Kenya signed a four-year IMF loan in 2021 and another for climate change measures in May 2023, totalling $3.6 billion. The country secured a staff-level agreement with the IMF on its seventh review in June, but the protest and finance bill withdrawal delayed the executive board’s sign-off and payout.

Public debt helps development. Governments utilise it to fund spending, protect and invest in their citizens, and improve their futures. However, too quick governmental debt growth can be a burden. The developing world which Africa forms core is experiencing this.

Kenya’s government debt was 70.10% of GDP in 2023. Kenya’s government debt to GDP averaged 56.36% from 1998 to 2023, peaking at 78.30% in 2000 and falling to 38.20% in 2012.