News

BRICS calls for boycott of US dollar in oil trade with Middle East

Published

2 years ago

on

April 15, 2024

By

Sunday Odibashi

BRICS calls for boycott of US dollar in oil trade with Middle East

BRICS, an intergovernmental organization, on Monday called on the Middle East to stop using the US dollar for oil trade settlements in the international market.

READ ALSO: Tears of horror, Aisha Yesufu decries kidnap of 276 Chibok school girls, Nyanya bombing, 10 years after

This is sequel to the ongoing violent rift between Israel and Iran, in addition to the violence in Gaza.
Membership of BRICS comprises of
Brazil,
Russia,
India,
China,
South Africa,
Egypt,
Ethiopia,
Iran, and
the United Arab Emirates.

The intergovernmental organization was formed by Russia, China, Brazil and India in 2006, in anticipation of expansion across the world that will lead to greater representation for emerging economies and a chance to move away from reliance on the US dollar in international trade.

Related Topics:#BreakingNews BREAKING NEWS Dollar Iran Israel

Relationship between Oyetola, Omisore remains cordial — Osun APC

Yahaya mourns as Maidalan Gombe family loses six members in road accident

Continue Reading

Advertisement

Click to comment

Leave a Reply
Cancel reply

Africa breaks World Cup record with seven teams in knockout stage

Africa breaks World Cup record with seven teams in knockout stage

Football3 days ago

Africa breaks World Cup record with seven teams in knockout stage

Alleged xenophobic attack claims life of Malawian street vendor in South Africa

Alleged xenophobic attack claims life of Malawian street vendor in South Africa

Latest6 days ago

Alleged xenophobic attack claims life of Malawian street vendor in South Africa

Netherlands to face Morocco, Brazil draw Japan in 2026 World Cup round of 32

Netherlands to face Morocco, Brazil draw Japan in 2026 World Cup round of 32

Football4 days ago

Netherlands to face Morocco, Brazil draw Japan in 2026 World Cup round of 32

When Parliament Joined The Wave

When Parliament Joined The Wave

Comments and Issues5 days ago

Norway’s Rowing Celebration Captures The Spirit Of The World Cup

Nigeria’s domestic aviation sector is under fresh financial pressure following the introduction of a new 5% federal levy on air tickets, intensifying concerns over rising operating costs, fragmented taxation, and expensive aircraft leasing arrangements that airlines say are threatening industry sustainability. The new levy, introduced as part of aviation revenue reforms, is collected alongside existing statutory charges imposed by multiple agencies. Airline operators say the additional deduction further compresses already thin profit margins in an industry already weighed down by high jet fuel prices, regulatory fees, and foreign-exchange–linked obligations. Industry stakeholders warn that the cumulative effect could push up ticket prices, dampen passenger demand, and worsen liquidity challenges for domestic carriers already struggling with cash flow constraints. Rising Tensions Between Regulators and Airlines The financial strain has coincided with renewed friction between the Nigeria Civil Aviation Authority (NCAA) and the Airline Operators of Nigeria (AON), following disputes over the remittance of statutory charges and the delivery of regulatory services. Operators say the situation reflects deeper systemic liquidity stress across the sector, where airlines are increasingly unable to meet overlapping obligations imposed by aviation agencies while maintaining operational stability. A Layered and Fragmented Tax System At the centre of industry complaints is what operators describe as a “multi-layered and excessive” taxation structure involving the NCAA, the Federal Airports Authority of Nigeria (FAAN), and the Nigerian Airspace Management Agency (NAMA). Airlines such as Air Peace, Ibom Air, and United Nigeria Airlines are subject to a range of compulsory charges, including the 5% ticket levy, passenger service charges, value-added tax on tickets and aviation inputs, and other operational deductions collected at different stages of the value chain. Industry players argue that the system creates cash flow distortions because several charges are collected upfront or deducted at source, leaving airlines with reduced working capital for day-to-day operations. Beyond ticket-based deductions, carriers also face landing fees, parking charges, overflight fees, navigation levies, and ground handling costs. Combined with jet fuel, which accounts for a significant share of total operating expenses, analysts say profitability on many domestic routes has been severely constrained. Leasing Constraints and Foreign Exchange Pressure Airlines’ challenges are compounded by difficulties in aircraft acquisition and leasing, which remain essential for fleet expansion in the absence of strong local financing options. Most carriers rely on wet and dry lease arrangements from international lessors. Wet leases, which include aircraft, crew, maintenance, and insurance, allow quick capacity deployment but are costly and typically paid in foreign currency. Regulatory limits also restrict their use to short-term arrangements. Dry leases offer more operational control and long-term stability but are increasingly difficult to secure. International lessors often view Nigeria as a high-risk environment due to concerns over aircraft repossession and currency volatility, resulting in higher insurance premiums, security deposits, and financing costs. As a result, airlines are frequently forced into short-term leasing agreements, exposing them to exchange-rate fluctuations and operational disruptions that contribute to flight delays and cancellations. Fuel Costs Deepen Financial Strain Jet A1 fuel remains one of the largest cost drivers in the sector, further squeezing margins across domestic routes. With fuel expenses, taxes, and leasing obligations combined, industry analysts say many airlines are operating with extremely narrow or unstable margins. Operators warn that without coordinated policy reforms, sustained profitability and expansion in the sector will remain difficult. Calls for Structural Reform Aviation stakeholders are calling on the federal government to streamline overlapping charges, review the newly introduced 5% levy, and consider removing VAT on aviation inputs to ease cost pressures. They are also advocating for reforms to centralise fee collection processes, improve transparency in regulatory charges, and support more stable aviation fuel supply mechanisms. In addition, industry groups are pushing for the development of a local aircraft leasing framework to reduce dependence on expensive international markets. Outlook While policymakers continue to explore potential incentives, including tax relief measures and leasing reforms, airlines say they are already adjusting operations through capacity cuts, route optimisation, and tighter financial controls. For now, Nigeria’s domestic carriers remain under significant pressure, navigating what industry players describe as one of the most financially challenging periods in recent years.

Aviation1 week ago

Heading through the storm: Multiple taxes, complex leasing drag on Nigerian carriers

Leaked court documents allege Shell ignored pipeline safety warnings in Niger Delta

Leaked court documents allege Shell ignored pipeline safety warnings in Niger Delta

Energy5 days ago

Leaked court documents allege Shell ignored pipeline safety warnings in Niger Delta

Troops close in on forest hideout as search continues for abducted Oyo schoolchildren

Troops close in on forest hideout as search continues for abducted Oyo schoolchildren

Latest1 week ago

Troops close in on forest hideout as search continues for abducted Oyo schoolchildren

Entertainment15 hours ago

Actress Cossy Ojiakor shares flooded home as heavy rainfall wreaks havoc in Lagos