Calls for Nigeria to reconsider tax on free trade zones

The Nigerian government should reconsider its decision to impose taxes on companies operating in free trade zones (FTZs) as this may result in the country losing its private jet maintenance hub operated by ExecuJet Nigeria at Lagos, which currently attracts aircraft from across Africa for cost-effective maintenance due to tax exemptions.

This is the call from Sam Iwuajoku, the administrator of the Quits Aviation Services Free Trade Zone, which hosts ExecuJet Aviation Nigeria FZE at Lagos International Airport. He told the newspapers Business Day and This Day Live that the facility handles maintenance, repair, and overhaul (MRO) services, trains local staff with expatriate expertise, and supports more than 1,000 jobs.

He warned that the tax reform would threaten these jobs, hinder technology transfer, and result in higher maintenance costs for Nigerian-owned aircraft as owners would have to take their aircraft to maintenance hubs overseas.

The Nigeria Export Processing Zones Authority (NEPZA) currently offers tax exemptions and other benefits to free-zone enterprises, including reduced foreign exchange risks.

ch-aviation has reached out to ExecuJet Nigeria for comment.

According to company information, it is part of ExecuJet Aviation Group, with Quits Group being the Nigerian partner. It is set up as an MRO and fixed-base operator (FBO) at Lagos with a 22,835 square metre concrete apron and a 4,074 square metre hangar. It serves the needs of the business jet market in Nigeria and visiting aircraft. Line and scheduled maintenance services are provided for Bombardier Business Aircraft, Dassault Falcon Jet, Embraer, Hawker Beechcraft, and other aircraft. The company is approved by the Nigerian Civil Aviation Authority, the South African CAA, the Bermudan CAA, and the Cayman CAA. EASA certification is in progress.

By Hilka Birns, ch-aviation

Nigerians displaced as rents double in inflation-hit Lagos

Nigeria's economic crisis is hitting renters in Lagos hard as landlords pass down the costs of spiralling inflation -- pushing residents further out, upending children's education and adding to workers' already infamous commutes.

With a population of more than 20 million, the country's sprawling, ever-growing economic capital has for years struggled to keep up with housing demand, with some 3,000 people added to its population per day.

But government-led economic reforms, including the floating of the naira currency and the removal of a fuel subsidy, have sent a shock through the economy.

In a city that scions of oil wealth, a solid middle class and millions of informal workers all call home, rents are spiking on both Lagos' richer islands and the cheaper -- and poorer -- mainland.

"I might just have to find a way to plead with my landlord," said Yemisi Odusanya, a 40-year-old cookbook author and food blogger.

After giving birth to twins last year, she's doubtful she can find a better deal elsewhere for her family of seven, even after her landlord in Lekki raised the rent 120 percent.

"I'm planning to pack out," Bartholomew Idowu, a transportation worker, said emphatically, though he wasn't sure where he and his children would move.

The mainland resident's landlord hit him with a 28-percent rent increase, from 350,000 naira ($232) per year to 450,000 -- a significant sum in a country where the GDP per capita is $835.

- Children changing schools -

The government recently revised its inflation data, knocking down official year-on-year inflation in January to 24.48 percent, from December's 34.80 percent figure.

That's been of little consolation to ordinary Nigerians.

"The way out at the moment is to look for a way to pay," said Dennis Erezi, a journalist, noting that his 31-percent rent increase is still cheaper than moving.

Jimoh Saheed, a personal trainer, had to leave his one-room flat in a middle-class neighbourhood in Ikoyi when his landlord more than doubled his rent to 2.5 million naira a year and a half ago.

Moving to the mainland meant he was further from his clients and his two children had to change schools and now pay for transport since they no longer live close enough to walk to class.

Late last year, his new landlord raised his rent by 25 percent.

"This is affecting me emotionally, it's affecting me mentally, and in fact, physically," said the 39-year-old, who said his earnings have not kept up with the pace of inflation despite taking on more work.

Lawyers say that rent hikes cannot be unilaterally imposed and are supposed to be negotiated between parties.

But laws are rarely enforced without the threat of a lawsuit, attorney Valerian Nwadike told AFP, noting an uptick in tenant-landlord disputes in the past year.

- Luxury market -

The government hopes its economic reforms will eventually pay dividends, but for nearly two years Nigerians have slogged through the worst economic crisis in a generation.

There are also structural issues at play: high interest rates mean mortgages are out of reach for most, and developers face a bureaucratic regulatory environment, said housing analyst Babatunde Akinpelu.

Lagos is also home to an outsize number of Nigeria's jobs -- leading to an unending stream of people pouring in.

Even as cranes and construction sites whir across the city, many new developments are targeted to the high-end market -- foreigners, Nigerians in the diaspora or oil sector workers, many of whom earn in dollars.

The result is a bifurcated housing market, where increased supply in the luxury sector doesn't trickle down to the rest of the housing stock, said economist Steve Onyeiwu.

"Most of (Lagos's) landlords are exposed to dollar-denominated expenses," like loans or mortgages for properties abroad, even as the naira's value has collapsed, said a director at Island Shoreline, a property management company, adding his own landlord recently tried to raise his rent 100 percent.

Improved public transit, such as the new rail line connecting Lagos and Ibadan, might alleviate pressure but for now there's a "snowball effect" of rising prices, he noted, asking that his name not be used given the sensitivity of rent hikes.

With leases typically paid up front for anywhere between one and three years, both landlords and renters try to negotiate a good deal to hedge against inflation.

But the current spike in rents is "alarming," said real-estate agent Ismail Oriyomi Akinola, noting 200 percent jumps on the wealthy Victoria Island.

"Good shelter is very key to every individual," he said. "Not only for the rich."

Nicholas Roll and Tonye Bakare, Fort Bend Herald

Nigeria partners with China Foreign Trade Centre to strengthen trade relations

Africa's participation in China's bi-annual Canton Fair has been growing, with Nigeria among the biggest participants from the continent. Companies and entrepreneurs met in Lagos to strategize for the upcoming April event.

CGTN

Nigeria to automate short stay visa approval process

Nigeria is automating its electronic visa approval and issuance process in an effort to boost travel and business, the interior minister said.

This automation aims to eliminate lengthy wait times faced by travellers upon arrival and could end a thriving industry for middlemen who work with immigration officials to help visitors jump through the hoops.

Under the proposed plan, travellers can apply online for short-stay visas, with approvals granted within 24 to 48 hours. Once approved, the e-visa will be sent to the applicant's email, eliminating the need for a physical sticker at the airport.

"The proposed visa policy aims to enhance the ease of doing business, boost tourism, and strengthen bilateral and multilateral relations with other countries," Olubunmi Ojo, Nigeria's interior minister said on X following a department meeting on Tuesday.

Since President Tinubu came into office in May 2023, the government has sought to improve visa process for foreigners and ease passport issuance system for Nigerians, setting up a contactless passport application system for Nigerians abroad.

By Isaac Anyaogu, Reuters

Counterterrorism center of Nigeria warns of threats, launches review of strategy

Nigeria's National Counter Terrorism Center (NCTC) warns that terrorist groups are getting more sophisticated — using new technologies and exploiting political and economic grievances to expand their operations. In response, authorities have launched a review of the national anti-terrorism strategy to address emerging threats.

The official anti-terror strategy document was first developed in 2014 and revised two years later. Authorities say this latest revision is necessary to reflect evolving security threats and ensure counterterrorism measures remain effective.

"The tactics used by non-state actors keep evolving and have become highly unpredictable," said Major General Adamu Garba Laka, the national coordinator of the Counter Terrorism Center. "Nigeria is grappling with the challenges of insecurity, thanks to the efforts made by personnel and agencies in charge of securing the lives of citizens, which has ensured the decline in the number of such incidences."

The review comes three months after Nigerian authorities warned that a new terror group, Lakurawa, has emerged in the northwest region.

Authorities say terrorist organizations are increasingly using advanced technology — such as encrypted messaging apps, social media recruitment campaigns and drones — to enhance their operations.

They also exploit poverty, political grievances and weak law enforcement in remote areas to recruit fighters and spread their ideology.

Laka said the updated strategy will redefine the roles of government agencies involved in counterterrorism efforts.

For well over a decade, Nigeria has struggled to curb violence from terrorist groups, including Boko Haram and its offshoot, the Islamic State West Africa Province (ISWAP).

Since 2009, more than 35,000 people have been killed, and at least 2 million have been displaced.

Although the overall number of terrorism-related deaths has declined in recent years, threats persist because of persistent poverty and poor governance.

Security analyst Chidi Omeje said the increasing sophistication of terror groups is not surprising.

"I don't see it as something that we didn't expect. That's the reality of emerging security," said Omeje. "They have these links with terror networks, so they'll naturally grow in these proficiencies. So, it's up to us to devise ways to counter those technologies they're using."

Last month, terrorists attacked a military base near Nigeria's border with Niger, killing 20 soldiers.

Security analyst Ebenezer Oyetakin argues that beyond reviewing counterterrorism strategies, authorities need to uncover terrorism financiers.

"When you take a look at the operation of al-Qaida, you compare it with ISIS — the way they move in their convoy — and then you compare it with Boko Haram, you'll see the semblance, which means they're too dynamic, they're not just a bunch of illiterates that are trying to make ends meet," said Oyetakin. "We should look for those behind them rather than contending with policies that are not sincerely being implemented."

Africa has become the global epicenter of terrorism, accounting for the highest number of terror-related deaths in 2023.

Last April, Nigeria hosted the African Counter-Terrorism Summit, bringing together hundreds of experts and policymakers to develop a continent-wide strategy against terror groups.

But for now, Nigerian authorities say their focus remains on strengthening the country's resilience against terrorism.

By Timothy Obiezu, VOA