POST COVID-19: Will Buhari, Governors Ensure Things Don’t Fall Apart?
Just confirmed from my friend with Qatar Airways that airlines are being crushed. His salary as aircraft engineer has been slashed by more than 40%, and he is so glad to have a job. He said pilots were the worst hit with cabin crew.
Saw this on another group and I fear for Naija
-Virgin fires more than 3000 people including 600 Pilots
-Finnair returns 12 planes and lays off 2,400 people
-You grounds 22 planes and fires 4,100 people
– Ryanair grounds 113 planes and gets rid of 900 pilots for the moment, 450 more in the coming months
– Norwegian completely stops its long-haul activity!!! The 787s are returned to the lessors
– SAS returns 14 planes and fires 520 pilots… The Scandinavian states are studying a plan to liquidate Norwegian and SAS to rebuild a new company from their ashes
– Ethiad cancels 18 orders for A350, grounds 10 A380 and 10 Boeing 787. Lays off 720 staff
– Emirate grounds 38 A380s and cancels all orders for the Boeing 777x (150 aircraft, the largest order for this type). They “invite” all employees over 56 to retire
– Wizzair returns 32 A320s and lays off 1,200 people, including 200 pilots, another wave of 430 layoffs planned in the coming months. Remaining employees will see their wages reduced by 30%
– IAG (British Airways’ parent company) abandons the takeover of Air Europa (and will pay €40 million compensation for that).
-IAG (Iberia) grounds 56 planes,
-IAG (British Airways) grounds 34 planes. Everyone over 58 to retire
– Luxair reduces its fleet by 50% (and associated redundancies)
– CSA abolishes its long-haul sector and keeps only 5 medium-haul aircraft
– Eurowings goes into bankruptcy
– Brussels Airline reduces its fleet by 50% (and associated redundancies)
– Luftansa plans to ground 72 aircraft (in two installments)
– Hop is studying the possibility of reducing fleet and staff by 50%
Currently 60 new aircraft stored at Airbus with no buyers in sight (order cancellations) including 18 A350s
They forecast a minimum of 8,000 grounded planes by September. With an average of 5.8 crews per plane (medium and long haul combined), that would make more than 90,000 unemployed pilots worldwide.
The air transport industry is on life support!
Found this worth sharing, it’s from my friend in the Diaspora to us. Read at your leisure.
THE GATHERING STORMS IN NIGERIA
In the face of the coronavirus pandemic, I am becoming increasingly worried about the future of Nigerians and Nigeria itself, from economic, health, social and security perspectives. A number of gigantic storms are gathering at the same time in Nigeria and I am worried that we may be ill-equipped to cope.
First, the number of confirmed coronavirus cases in Nigeria is beginning to jump exponentially every week now. The number of confirmed cases jumped by 117 on April 21st and by 91 on April 22nd, bringing the total to 873. That means that in the past 10 days, the number of confirmed cases in Nigeria has tripled. That also strongly suggests that whatever we are doing at the moment to contain the spread of the disease is not working well. The trajectory is alarming, raising the question whether we can we still contain the spread? Are we maximizing our capabilities in Nigeria and resources to avoid going the way of Italy, Spain, or the United States?
Second, we are beginning to discover community clusters of infections. We have recorded community outbreaks in Abuja (Mpape and Mabushi) that shocked health workers. It is very likely that what we have discovered is only a tip of the iceberg. Given the fact that very few people have actually been tested in Nigeria. So far we tested less than 10,000 people in a population of 200 million (which is less than 1% of 1%). It is possible that the disease has spread much deeper than our data shows. As of today, we don’t know how many people are already infected or where those people are. That is very dangerous, particularly when you consider that lockdown could be lifted within a couple of weeks from now.
Third, Kano is recording mysterious deaths in its elderly population and many suspect that the deaths are related to the community spread of COVID-19 from the index case who allegedly attended many functions before he was diagnosed. More than 150 people have died in Kano in the last three days. At the same time, the number of confirmed COVID-19 cases in Kano has skyrocketed to 73 as of today. That strongly suggests that there is serious community spread. What is most worrying is that the burial of the 150 people who died was not done in conformity with established guidelines for the burial of those who died from COVID-19 or similar infectious diseases. Consequently, we are likely to see more infections and deaths in Kano, which is the most densely populated city in the North. You don’t have to have to be a prophet to see that coming. What if the community spread has reached neighbouring States? Do they have the capacity to cope?
Fourth, Nigeria’s mainstay, Oil, which accounts for 60% of its revenue and 90% of its foreign exchange, is trading at below $1 per barrel globally as of today. Yes, you read it correctly. Oil is trading at less than $1 dollar per barrel today. Even at that, nobody is buying Nigeria’s Oil right now. It was trading at $12 dollars last week, which was already an historic low, until it crashed further. We have numerous vessels laden with millions of barrels of Oil stranded at sea waiting for buyers. With the world economy virtually at a standstill and manufacturing plants shutdown, nobody is buying. Nigeria is losing tens of billions of naira every single day. And the hemorrhaging is not likely to end any time soon. To make matters worse, Nigeria does not have sufficient storage capacity for the Oil that is not being sold right now. That’s another storm looming.
Fifth, with a huge debt burden which gulps most of Nigeria’s yearly revenue, with little or no Oil sales at the moment, with no productivity (because of the lockdown), and with diminished capacity for internally generated revenue, Nigeria could be bankrupt within the next 60 days according to global experts. That means it will be unable to pay workers and pensioners, to meet its financial obligations, and to provide essential services to its citizenry. What is the contingency plan for this looming storm? Clearly, the answer cannot simply Beto borrow more.
Sixth, most States in Nigeria are not viable. Without the monthly allocation from FAAC, most States cannot pay salaries or provide essential services. Within 30 days of diminished allocation from Federal, most States will be on life support. Within 60 days, most States will be bankrupt as well. Imagine the chaos that would ensue across the country when that happens. When the centre hub cannot hold the spokes, the whole wheel collapses. A few days ago, the Chairman of the Governors Forum, Dr. Fayemi stated that States may get zero allocation from FAAC in June, because of Nigeria’s dwindling fortunes. What are the Governors doing to ensure that things will not fall apart? Is any Governor currently working on an Emergency Preparedness and Response Plan?
Seventh, the lockdown enforcement has led to the shutdown of production and the stoppage of commercial activities in most key centres. Virtually all import activities have stopped as well. Consequently, Government cannot receive any succour from the Private Sector by way of duties, taxes and fees. Indeed, it is the Private Sector which needs help from Goverment at this critical juncture. And because Nigeria is undergoing its own financial crises, there will not be any meaningful help given to the Private Sector. Beyond the rhetorics of Stimulus and Intervention announced by the Central Bank of Nigeria, how many businesses and households have actually received money one month after the announcement? Predictably, many businesses will not recover from the lockdown. Many workers tenously holding on to their jobs may never go back to work. In our interdependent society, the ripples of these developments will be felt in the nooks and crannies of every region in Nigeria. That is a gathering storm which is going to sweep a lot of people off their feet.
Eight, more than 70% of Nigerians are engaged in Agriculture. Much of our farming is rain-fed. With the lockdown in effect at this time, most people do not have the financial resources or the freedom of movement to return to farming, despite the onset of the rainy season. The inability to return to the farm during this season is going to reverberate later with dire consequences. It portends danger for our food security. Already we have seen a sharp rise in the price of basic commodities. With 70 million people in Nigeria already classified as extremely poor, there’s likely to be starvation and death, resulting from people’s inability to return to the farm with adequate resources and as quickly as possible. Nigerian agriculture was already on life support because of the menace of rampaging bandits prone to destroying livelihoods and lives wantonly, which has kept many, especially women, from venturing out to farm. When the situation is compounded by COVID-19 restrictions and deprivations, there is imminent danger of food shortages and starvation at a scale we have not witnessed before. What are we doing to avert the looming food crisis?
Ninth, as lockdown continues in our major cities, expect a rise in insecurity. Incidents of armed robbery, home invasion, theft, rape, and kidnapping are being reported now and are likely to increase exponentially in the coming weeks, if the lockdown measures are extended. We are already seeing the breakdown of law and order in Lagos and other parts of the Southwest, probably because they went into lockdown before other zones. As the hydra-headed monsters of idleness and financial hardship bite, we are likely to see an upsurge in youth restiveness and criminality in many zones. Given that Nigeria’s COVID-19 burden is still growing at an alarming rate, we are now caught between the proverbial rock and the hard place. That is another storm on the horizon.
Tenth, I am worried about the compound effect of all these shocks on the psyche and the wellbeing of the illiterate, extremely poor Nigerian who survives from day to day only by going out to hustle for his or her likelihood. Already the fault lines are beginning to crack in some places as people openly defy stay-at-home orders. How much longer can good people who are hungry and hopeless maintain their pretence to civility and order? How long can starving people endure lockdown without revolting, particularly when they only hear rumours of palliatives being given to others? This storm is also gathering.
In conclusion, we are tethering on the edge of a make-or-mar moment in the history of our country. As we pray for God’s mercy, we must also begin to prepare ourselves for a looming period of famine and unprecedented hardship at all levels. There’s going to be a radical realignment of our system as we know it. It has already started.
Because of systemic and strategic deficits over the past 60 years since independence, I foresee a period of severe hardship for Nigeria and every Nigerian in the short term. It’s inevitable. Saying “God Forbid” is not enough.
This is a warning to the reader and to our leaders to buckle up for the unavoidable turbulence that is headed our way when all these 10 storms I have identified begin to converge.
Being a prayerful nation (not necessarily a spiritual one judging by our actions most of the time), this is the time for earnest prayer and sober reflection.
But most importantly, it should be a time for planning and preparation. To survive the perfect storm that is gathering and whose thunderous rumblings we can already hear, we must become wiser and more focused as as a nation on how to contain the current health pandemic, how to weather the economic crisis, and how to build sustainable systems and structures for resilience. Instead of hiring 774,000 people as the government is planning to do, thereby swelling an already bloated workforce on Government payroll, we should devote the resources to helping farmers to return to the field quickly, ensuring security everywhere, and helping our MSMEs to go back to production. This is the time to nurture self-sufficiency for our nation, truly diversify our economy, and find ways to reduce our dependency and mindless addiction to things foreign.
It is my earnest hope that the reader and his or her family will survive the myriad storms confronting us. It is also my hope that after this seismic quake, Nigeria will emerge wiser, stronger, and better – eventually. But the preparation must begin in earnest. We are already running out of time.
*Dr. John Osonwa is an Environmental & Climate Change Expert .April 22, 2020