FG approves N5bn bailout for aviation sector

The N4 billion approved for the airlines by the federal government is too little to make an impact on the operations of the airlines.
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Senator Hadi Sirika, Minister Of aviation

Aviation Minister, Hadi Sirika said the Federal Government had approved an N5 billion bailout on Monday for players in the nation's aviation industry.

The minister, who revealed this at the opening of a three-day public hearing on the six executive bills put together by the government to reorganize the country's civil aviation agencies, said airline operators would get N4 billion, while N1 billion would be earned by other companies in the field.

He said:

“The federal government has approved N4bn as a bailout for the airlines and N1billion for other businesses within the civil aviation.

“We are already putting arrangements for the disbursement in place and once we start, it would be transparently done.”

But Smart Adeyemi, Chairman of the Senate Committee on Aviation, expressed doubt as to whether N4 billion will be enough to hold airline operators in the business.


Adeyemi said:

“If we really want to keep the airline operators in business, and we don’t want them to close shops and go home, the federal government should shore up the amount it wanted to give them.

“For a developing nation like Nigeria, we need to encourage airline operators to remain in business.

“The situation would be worse if we fail to support the operators and force them to cut corners.

“Let’s look at the cost of spare parts for the airlines and duties that they perform. Though, we might argue that the business is a private one, but it is centred around safety.

“The N4 billion approved for the airlines by the federal government is too little to make an impact on the operations of the airlines. ”