The Nigerian Senate has rejected the offer of 5 billion naira as a bailout for airline operators and other businesses in the aviation sector, saying the amount is grossly inadequate to relieve the impact of Covid-19 on the industry.
The Chairman, Senate Committee on Aviation, Smart Adeyemi, on Monday, made a case for a bailout for airline operators in Nigeria but was quick to add that what the government was offering as the bailout was too little to make any meaningful impact.
The Minister of Aviation, Senator Hadi Sirika had informed the Senate Panel about the Federal Government’s plan to provide N4 billion for airline operators and another N1billion for other business owners in the aviation sector as part of its intervention to cushion the effects of the Covid-19 pandemic.
Siraki said the government’s decision was based on the recognition of the pivotal role of the aviation sector to the Nigerian economy.
Adeyemi, however, maintained that the bailout for the airline operators is a far cry from what will be required for them to finance aircraft maintenance and retain their workers.
” I do not think that N4 is what we are talking about. I think the Federal Government should give the industry all the attention it deserves; substantive support.
“N4 billion is not enough. Yes you might say they are in business, but their business is the soul of our economy,” he said.
Adeyemi further advised the government to provide sufficient bailout to the airline operators to avoid them “cutting corners” in their operations.
“Such bailout will ensure they (airline operators) don’t cut corners; the implication of which is better imagined,” he said.
Responding, the Minister said the Federal Government will require the backing of the Senate for necessary Appropriation in that regard in the 2021 budget.
The conversation was as the Senate Committee on Aviation on Monday began a 3-day public hearing on six executive bills aimed at fine-tuning regulatory issues as well as effective management of agencies in the Nigerian Aviation industry.
Major is the twin bills for an Act to repeal and enact the Civil Aviation Act, 2006, and the Nigerian College of Aviation Technology Act 2010.
The President of the Senate, Ahmad Lawan who was represented by the Deputy Leader; Robert Ajayi Boroffice said the six bills are consistent with current efforts by the government to improve standards in the aviation industry.
