• Sunday, June 16, 2024
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BusinessDay

More troubles for Nigeria’s travel sector over UK fresh lockdown

Barely two months after the resumption of international flights into Nigeria, the United Kingdom (UK), the most frequently visited destination by Nigerians, has commenced a fresh round of lock down over increasing cases of the coronavirus pandemic, otherwise known as Covid-19.

Britain has introduced a travel ban as part of a four-week lockdown prompted by an alarming jump in the Covid-19 infection rate to one in 100 people.

In what has been described as a “Nightmare before Christmas”, UK residents will need to stay at home from November 5 and avoid “all non-essential travel by private and public transport”, also travellers from various parts of the world will not be allowed into the UK during this period.

The travel ban is part of a wider lockdown that involves shutting pubs, restaurants, non-essential shops as well as entertainment and leisure venues.

A new national lockdown in England may have to last longer than the planned four weeks if coronavirus infection rates do not fall quickly enough, a senior government minister said.

The lockdown, which was announced by Prime Minister Boris Johnson to run from Thursday, November 4 till December 2, will impact Nigeria’s travel industry as the UK remains the most frequently visited destination by Nigerians.

Bernard Bankole, a former president, National Association of Nigeria Travel Agencies (NANTA) told BusinessDay SUNDAY that while airlines and travel agents were still trying to survive the impact of Covid-19, the new lockdown will spell more doom for the sector.

“UK is the most visited destination for Nigerians as a lot of Nigerians have families and friends in the UK. This will impact our revenues and travellers will also have to put on hold businesses and other activities as a result of the fresh lock down,” Bankole said.

Seyi Adewale, chief executive officer of Mainstream Cargo Limited, told our correspondent that the UK lockdown would definitely impact Nigeria’s aviation industry significantly, negatively.

Adewale noted that Nigeria’s aviation ground handling companies that earn income through aircraft turnaround and passenger services may end Q4 2020 financial results in the negative, adding that they have already posted Q3 financial losses.

He said the same applied to travel agencies and the Federal Airports Authority of Nigeria (FAAN) income through passenger taxes.

BusinessDay SUNDAY’s checks show that Nigerian Aviation Handling Company Plc. (NAHCO Aviance) posted a N165.9million loss for second quarter, 2020 and estimates for third quarter loss is still above N100 million.

Skypower Aviation Handling Company Plc (SAHCO) posted a N98.3million loss for half year and is estimated that they will still be in the negative zone by the end of third quarter.

Britain has the worst virus death toll in Europe, with more than 46,700 dead. It passed 1 million confirmed coronavirus cases penultimate Saturday and confirmed another 23,254 new infections last Sunday.

Adewale disclosed that job losses are imminent and the publicly quoted ones will definitely post losses for 2020 with no real shareholder value created.

“Many may source for fresh capital through right issues or issue bonds if they still have good underlying value. Remember, the bailout in the sector is considered very low; N4 billion for airlines and N1 billion for aviation service providers.

“Importantly, investments and reinvestment in the sector will be low which stifles growth as many are in the survival mode,” he said.

Like other European countries, virus cases in the U.K. began to climb after lockdown measures were eased in the summer and people began to return to workplaces, schools, universities and social life. In recent weeks, new infections have been soaring across the continent, especially in Belgium, the Czech Republic, France, Spain and the U.K.

According to reports by Migration Policy Institute, (MPI), 190,000 people that were born in Nigeria live in the UK and 102,000 of them with Nigerian citizenship. It is reported that 75percent live in London and surrounding areas, in the boroughs of Lambeth and Southwark with Peckham – one of the most diverse areas of the country – with the most Nigerian-born people in Britain.

With 45percent of Nigerians adults saying in a survey in 2018 that they plan to move to another country within five years, the highest share among 12 countries surveyed across four continents, the Nigerian Diaspora will certainly grow even more in the next decade.

However, the Federal Government of Nigeria has raised the alarm that the nation risks massive infections of the Coronavirus pandemic, especially in next two weeks, over the possible importation of the virus into the country.

The Secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19, Boss Mustapha, raised the alarm on Tuesday in Abuja at the joint national briefing of the Task Force.

According to him, the PTF had noted with sadness the failure of Nigerians who arrived from abroad to present themselves for the in-country Polymerase Chain Reaction (PCR) test which they signed up to and paid before arrival.

According to him, statistics emerging from the nation’s records show that only one out of three passengers has shown up for the in-country test.

“The PTF at the last briefing cautioned on the need to avoid complacency on account of the low number of infections published daily and the possibility of a second wave.

“That advice was premised on the fact that risk perception remains very low and sample collection has been on the decline,” Mustapha said.

“The next week or two remain critical. The PTF has noted with sadness the failure of Nigerians who arrived from abroad to present themselves for the in-country PCR test which they signed up to and paid before arrival.

“Statistics emerging from our records show that only one out of three passengers have shown up for the in-country test,” he said.

Seyi Adewale explained that if Nigeria continues to enforce the travel protocols, the risk of getting infected would be managed, noting that travellers into Nigeria have to undergo Covid-19 tests before flight, self-isolation upon arrival, and retesting.

“The risk or threat is real and we have to be very vigilant as winter has been estimated to enhance the spread, hence, a four-week lockdown in the UK,” he said.