Not Dead, Not Buried: Aviation minister insists Nigeria Air will fly
The Nigeria Air will still fly, Aviation Minister Hadi Sirika insists, despite earlier fears that the Federal Government may have messed up its homework before going public with the announcement.
Sirika says the project was well planned and investors continue to show interest.
But it will cost the government about $300 million for initial funding between now and 2020, before investors fully take over.
He cites institutions and airlines who are interested in investing in the project as the African Development Bank (AfDB), AFREXIM, US-EXIM, Standard Chartered Bank, Boeing, Airbus and China-Exim Bank.
The Minister said during a programme in Abuja on Thursday that several false reports had given the impression that FG muddled up the process.
“In recent months, misinformation, factual errors, insinuations and fabrications have been peddled in both social and print media on the Nigeria Air project,” he said.
“These include desirability, inadequate planning, non-consultation with stakeholders, lack of transparency and publications of fictitious amounts allegedly spent by the government on the project, amongst others.”
Sirika further clarified that the government would only own 10 per cent stake in the national carrier and also wouldn’t be involved in its management.
“Mr President directed the then ministry of aviation to commence the process for the establishment of a national carrier during the ministerial briefing on the aviation sector.
“The ministry set up a committee which came up with the modalities for the establishment of a national carrier.
“The committee in its report submitted in September 2015 recommended a private sector-led national carrier with 10 percent government ownership and non-involvement of government in the management of the airline, but the provision of enabling environment for its operation.”
He clarified that the $300 million capital is broken down as: initial start-up capital of $55 million ($25 million for deposit for new aircraft and $30 million for working capital from June to December 2018); estimated working capital of $100 million for 2019; and $145 million for 2020 to be provided by strategic equity partners who would manage the project.
“Certain media publications that $8.8 million was expended at the Farnborough air show are unfounded, malicious, misleading, mischievous and baseless,” the Minister said.
“The TAs for national carrier coordinated the campaign and provided the additional services that included the development of the brand strategy and the media activities relating to the unveiling of the airline.
“Due process was followed in the branding, which included obtaining ‘No Objection’ certificate with Ref. No. BPP/RPT/18/VOL.1/075 from the Bureau of Public Procurement for payment of N50.8 million for these services is yet to be made.”
Sirika also dispelled rumours that the logo was designed for a whopping sum by a foreign company.
“No foreign company was paid $600,000 for the design of the logo as speculated,” he said.
