Aviation Minister Laments as Airlines Owe Agencies N22.2billion
*Reps committee orders suspension of airports concession
By Onyinye Apeh
The Minister of Aviation, Senator Hadi Sirika, Monday lamented over the rising debts owed agencies by airlines which he put at N22.2billion in the past 10 years.
This was as the House Committee on Aviation directed the Ministry to suspend the planned concession of four airports to private investors.
Sirika who spoke during a public hearing on the Civil Aviation Amendment bills by the National Assembly, disclosed that the federal government would very soon begin the disbursement of N5billion bailout fund for the operators in the industry.
On the debt profile, he said domestic carriers owe the agencies $6.9m and N19.6m.
According to him, the airlines have not been able to pay the agencies five per cent charge due to the Nigerian Civil Aviation Authority (NCAA), passenger service charge, landing and parking fees to the Federal Airports Authority of Nigeria (FAAN) as well as overflight charges to the National Airspace Management Agency (NAMA).
The Minister gave the debt details owed the agencies when the Chairman of the Senate Committee on Aviation, Senator Smart Adeyemi requested government to consider bailout fund for the airlines as a way of saving them from bankruptcy.
On the planned N5billion bailout fund , he explained that the airlines would receive the sum of N4billion while other businesses in the sector would be getting N1billion.
According to him, “The federal government has approved N4 billion as a bailout for the airlines and N1 billion for other businesses within civil aviation.
“We are already putting arrangements for the disbursement in place and once we start, it would be transparently done”.
Adeyemi in his response said the N4billion for the airlines would not be enough, explaining that this was because the airlines had degenerated globally as a result of the Covid-19 pandemic.
Also Monday, the House of Representatives directed the Aviation Ministry to suspend the planned concession of the four airports until certain issues surrounding the exercise are resolved
The planned concession will affect four new international airport terminals in Lagos, Abuja, Port Harcourt and Kano.
The House of Representatives ordered the suspension following the failure of the Minister of Aviation to appear and clear certain issues on the planned concession.
The Committee memebers did not accept the excuse by the Permanent Secretary of the Ministry, Mr. Hassan Musa, that the minister could not attend following the engagement he had in the Senate.
The Reps members accused the Minister of having no regard for the Committee.
By Onyinye Apeh
The Minister of Aviation, Senator Hadi Sirika, Monday lamented over the rising debts owed agencies by airlines which he put at N22.2billion in the past 10 years.
This was as the House Committee on Aviation directed the Ministry to suspend the planned concession of four airports to private investors.
Sirika who spoke during a public hearing on the Civil Aviation Amendment bills by the National Assembly, disclosed that the federal government would very soon begin the disbursement of N5billion bailout fund for the operators in the industry.
On the debt profile, he said domestic carriers owe the agencies $6.9m and N19.6m.
According to him, the airlines have not been able to pay the agencies five per cent charge due to the Nigerian Civil Aviation Authority (NCAA), passenger service charge, landing and parking fees to the Federal Airports Authority of Nigeria (FAAN) as well as overflight charges to the National Airspace Management Agency (NAMA).
The Minister gave the debt details owed the agencies when the Chairman of the Senate Committee on Aviation, Senator Smart Adeyemi requested government to consider bailout fund for the airlines as a way of saving them from bankruptcy.
On the planned N5billion bailout fund , he explained that the airlines would receive the sum of N4billion while other businesses in the sector would be getting N1billion.
According to him, “The federal government has approved N4 billion as a bailout for the airlines and N1 billion for other businesses within civil aviation.
“We are already putting arrangements for the disbursement in place and once we start, it would be transparently done”.
Adeyemi in his response said the N4billion for the airlines would not be enough, explaining that this was because the airlines had degenerated globally as a result of the Covid-19 pandemic.
Also Monday, the House of Representatives directed the Aviation Ministry to suspend the planned concession of the four airports until certain issues surrounding the exercise are resolved
The planned concession will affect four new international airport terminals in Lagos, Abuja, Port Harcourt and Kano.
The House of Representatives ordered the suspension following the failure of the Minister of Aviation to appear and clear certain issues on the planned concession.
The Committee memebers did not accept the excuse by the Permanent Secretary of the Ministry, Mr. Hassan Musa, that the minister could not attend following the engagement he had in the Senate.
The Reps members accused the Minister of having no regard for the Committee.
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