Give to Marina What Belongs to Marina

+ Fuller Coaches, Lesser Cash

Beyond Nigerian Airways

So, the Federal Government announced the relocation of the departments of the Federal Airports Authority of Nigeria (FAAN) from Abuja to Lagos. A development that sparked mixed reactions.

The government stated that the relocation of FAAN’s headquarters to Lagos is an administrative move. Lagos is considered the centre of aviation business in Nigeria.

In 2021, Lagos’ Murtala Mohammed Airport, processed 72% of the total international passengers who passed through Nigerian airports.

Besides, the international passengers who pass through Lagos airport are 3 times those processed at the Abuja airport.

So when it comes to international trade in goods and services in Nigeria, Lagos is both the point of departure and the prime destination.

While Nigeria Airways’ disappearing act(s) may be easily scripted from Maitama’s “Ministers’ Hill” anytime, maintaining International Civil Aviation standards requires FAAN staff that are ready to roll up their sleeves, as Lagosians do.

That sounds like Marina!

However, for domestic flights, the Abuja airport processed more passengers than the Lagos airport as of 2021.

Well, the Abuja Airport is the destination Airport when it comes to domestic flights. 

“When you live in the palace, everybody comes to you for something.” 

Besides Abuja being the centre of Nigeria’s domestic cashless politics, sorry cashless policy, its central location makes it a connecting point to other North-Central States that either have no domestic airport or where commercial airlines hardly ply.

So when it comes to local flights, give it to Abuja.

And that sounds like Maitama.

Beyond Cashless Policy

Similarly, the Federal Government announced the relocation of some key departments of the Central Bank of Nigeria from Abuja to Lagos. This development also sparked mixed reactions from various quarters of the country’s geopolitical divide.

The government said the departments being relocated are the ones that oversee commercial banking operations. And Lagos is where these banks are.

If all commercial banks in Nigeria have their headquarters domiciled in Lagos, it appears a central bank should actually be at their centre. 

Despite the sleepy allure of Abuja, no mainline commercial bank has deemed it fit to relocate its headquarters in pursuit of the Central Bank. It’s always the other way around.

When it comes to the famous cashless policy and the tie and dye of currencies, Abuja is the best place for this craft.

But this is beyond cashless politics, sorry, policy.

Moving the concerned CBN departments to Lagos, where these commercial banks and other financial institutions coordinate their national and international operations, will make it easier to monitor and coordinate their activities. 

This will lead to a more effective oversight of the banking industry.

So, Lagos holds the cash. Abuja holds the chequebook.

What do you think?

Rail Revenue: Fuller Coaches, Lesser Cash   

Dataphyte’s review of the average revenue from passenger transit by the Nigerian Railway Corporation shows that its officials have a higher capacity to receive passengers on their train coaches than to receive cash.

The Corporation recorded the lowest passenger patronage during the COVID-19 period (Q2-Q4 2020).  Yet in the same period, it made the highest average revenue from passengers to date.

Afterwards, the average revenue declined in the next 2 years (Q1 2021 – Q4 2022) from N2,960 to N864, though the total revenue from ticket sales rose from N641 million to N1.16 billion in the same period.

There were even consistent new highs in total revenue from passengers, which peaked at N2.1 billion in the first quarter of 2022.

The average revenue from passengers implies the train ticket price. If there are more passengers, there ought to be more total revenue.

If ticket prices were constant and passenger traffic increased, the total revenue from ticket sales ought to increase too, except the Railway officials did not record some cash receipts.

Yet, analysis showed that the total revenue declared by the NRC did not reflect the increasing number of passengers boarding its trains after the low patronage during the COVID-19 pandemic.

In short, changes in total revenue contradicted changes in total passenger patronage in most of the quarters after the pandemic.

Average revenue showed a weak positive relationship of 17% with total revenue from 2019 to Q3 2023, it had a weak negative relationship of -13% from 2020 to 2022.

To stay in business this time, the Nigerian Railways Management needs to show a stronger correlation between the number of passengers on its coaches and the number given as cash receipts from its patronage by its patriotic passengers.

Talking about Operational Efficiency?