Successful Airlines Face Post-consolidation Hurdles
Airlines that scaled the recent re-capitalisation scare now face the new challenge of raising their operations and service quality to a standard that reflects their renewed capacity.
The aviation sector, it would be recalled, recently went through its own phase of the now familiar capital shore-up exercises. Banks, insurance companies and capital market operators had earlier gone through the same process, with the capital market operators even now challenged with another recapitalisation process. For the aviation sector, the series of air mishaps recorded in the recent years, with major hits in 2006, had raised serious issues about the funding of their operations. The need for further injection of capital was apparent and the new Aviation Minister seized the moment to press for an upward review of the minimum capital investment. The new capital requirements of N500 million for domestic operators N1 billion for operations within the continent and N2 billion for international operations were set for the industry.
As would be expected, not all the airlines have survived the exercise. For those that did, it's time to get down to serious business. As at the last count, the following airline had crossed the finishing line: Aero Contractors, Afrijet Airlines, Allied Airlines, Associated Airlines, Bellview Airlines, Chanchangi Airlines, Dornier Aviation Nig Limited, NICON Airways, IRS Airlines, Overland Airways, Air Midwest, Arik Airlines and new entrant Air Midwest.
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Orange Goes Mobile to Reach the Crannies
But Tracking is the Challenge
GTBank's new mobile banking service could prove revolutionary, if it gains market acceptance, but tracking the service is part of the challenge to be met for this to happen.
GTBank-on-Wheels is a new service that takes banking to the doorstep of customers and prospects via a motorised mobile unit. The unit provides basic banking services, including:
- teller points for depositing and withdrawing money;
- ATMs for quick cash withdrawals;
- A meeting room - meaning you can meet with the bank officers to discuss your banking needs and issues;
- A rounded team of customer service officers to provide that outstanding customer care that GTBank prides itself on.
The bank says it's a fully secured service which customers should feel comfortable to use. The question of tracking its availability however remains a concern: how will customers know when to expect it? If it has to be a chance thing, it is difficult to figure how it will count seriously in a person's plan for a day's banking activities.
A Shot in the Arm for Diamond Bank
With a $133 million investment in Diamond Bank by Actis Capital LLP now approved by The Securities and Exchange Commission, the bank is set to explore new vistas. The deal was earlier approved by the shareholders of the bank who also passed a resolution to raise the bank's share capital from N5 billion to N7 billion with the creation of additional 4 billion shares of 50kobo each. The bank was also authorised to issue 2.281 billion shares to Actis by way of private placement.
What next for the bank? The bank says it's investing in expanded presence within our borders and a shot at cross-border presence, first targeting the regional market. Benin would seem the intended first port of call.
Actis, a frontline private equity investment company with extensive interests in Africa, already has investments in UAC of Nigeria PLC and the Palms Mall in Victoria Island, Lagos. It seems set to deepen its investment interests in the country.
Obajana Cement Factory Goes Live!
Raises Prospects for Improved Supply and Reduced Prices
Another milestone has been recorded by the Dangote Group as the President commissioned its multi-billion naira Obajana Cement Factory, over the weekend. Located in Kogi State, the cement factory is billed to be third-largest in the world when it's second phase is completed. Setting work rolling on that phase was also a key part of this landmark event.
The just-commissioned first phase, comprising production lines 1 and 2, targets a production volume of 15,000 metric tonnes daily, a sizeable contribution to meeting the cement supply needs of the Nigerian economy. Given its reported best technology production system, the factory is expected to make a noticeable impact on cement supply to the market.
High cement cost has been a major hurdle in the provision of affordable housing stock to the Nigerian populace. A development like the commissioning of this factory, which is expected to strike at the root of that problem, is obviously a welcome development.
The event also further consolidates the already towering frame of Alhaji Aliko Dangote, Group Chairman, on the Nigerian business scene. His visible commitment to productive investment and his courage in facing the well-documented challenges of the Nigerian productive sector are an exemplary source of inspiration to aspiring entrepreneurs.
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