The Senate Monday rejected the planned N5billion bailout for airliners in Nigeria and other key players in the aviation industry.
But the lawmakers were also told the airliners owed the federal government N19billion and $6million as non-remittance of service charge expected from tickets issued to air travellers.
These came to the fore at the public hearing on six bills aimed at repositioning the aviation sector, organised by the Senate Committee on Aviation.
The hearing had in attendance Minister of Aviation Hadi Sirika and heads of various parastatals in the sector.
Addressing the gathering, the committee Chairman, Senator Smart Adeyemi (APC Kogi West), had solicited for bailouts for airline operators in the country to avoid unprofessional tendencies.
Sirika’s response
But in his response, the minister said already due to adverse effects of COVID-19 pandemic on the aviation sector, N4billion bailout was being worked out for the airliners while N1billion was also planned as bailout for other key players in the sector.
“The sector affected most by COVID-19 pandemic is the aviation sector just as it was with the 9/11 terrorists attacks in America and all other global pandemic that had happened in the past.
“The sector being the fastest growing sector in Nigeria economy actually needs to be supported, the very reason, the federal government is planning a total of N5billion bailouts for the sector”, he said.
Senate disagrees
But in swift reaction, Senator Adeyemi said the N5billion bailout was too meager for operators in the sector which, he said had suffered heavy losses during closed down of their businesses.
“The N5billion bailout is just too much an intervention to be made by government in repositioning the sector for quality service delivery anchored on safety of air travellers and operators.
“This meager intervention or bailout may make the airliners to start cutting corners, which will be disastrous.
“Federal government must surely have a rethink on what to give them which must be substantial enough for the required stabilisation of the sector,” Adeyemi said.
Sirika speaks again
However, in a further explanation, the minister said the proposed N5billion was what the federal government could afford for now, and pleaded with the National Assembly to so appropriate.
He also said the airliners were owing the federal government the sum of N19billion in local currency denomination and $6m dollars in international currency denomination, all as a result of non-remittance of service charge to the Nigeria Civil Aviation Authority (NCAA) on air tickets issued to travellers .
“Despite this huge debt being owed the federal government by the airliners, government is still considering N5billion bailout for them which is not a bad idea,” he stressed.
Sirika also defended the planned concession of four of the nation’s international airports for proper maintenance and upgrading, saying that remained the best option if the airports were to operate optimally be at par with those across the world.
He said, this ‘is a middle course’ since government was not favourably disposed to privatisation or outright sale of the facilities.
The airports are the Muritala Mohammad International Airport MMIA Lagos, Aminu Kano International Airport Kano, Nnamdi Azikiwe International Airport Abuja and Port Harcourt International Airport.
Reps halt bid
Notwithstanding the minister’s justification for the planned concession, the House of Representatives directed him and heads of agencies under the ministry to immediately put a hold to the planned concession of the airports.
Chairman House Committee on Aviation Nnolim Nnaji gave the directive at an interactive meeting Monday in Abuja.
The lawmaker recalled that earlier in September 2020, the committee had interactions with representatives of the labour unions on the subject matter during which they raised concerns regarding the planned concession of the airports, expressing dissatisfaction with failure of the minister and heads of affected agencies to be the meeting.
“Based on the outcome of the meeting (with the labour unions), the committee invited the minister and heads of agencies under him to discuss the issue of the airport concession but they failed to attend,” the committee said.
Nnaji also said the committee had received several memoranda from stakeholders on the planned concession of these international airports.
He expressed optimism that “the intervention by the House will provide the opportunity for all parties in the matter to reach a common ground that’ll move the nation’s aviation industry forward.”
