To
cushion the effect of the cash squeeze affecting foreign airlines flying into
Nigeria, the Central Bank of Nigeria (CBN) has released $300 million out of the
$600 million airlines fund stuck in the country.
Some
of the airlines have either stopped coming into Nigeria or are threatening to
stop because of the inability to remit their money out of the country.
Minister
of State (Aviation) Hadi Sirika, who broke the news to the airlines after the
Federal Executive Council (FEC) meeting in Abuja, said the balance would soon
be released.
Sirika
said: “Government through the CBN has made available $300 million out of the
$600 million of the airlines’ funds stuck in Nigeria to pay the airlines to
demonstrate its commitment to the sector.
“And
with devaluation, $600 million could be $1 billion. With government
intervention they have been given $300 million and gradually we will clear
everything and once that happens, they (airlines threatening to quit) are not
going anywhere.”
On
the airlines’ threat to leave Nigeria, he said: “I think it is a response to
how the industry is doing globally, especially Nigeria with recession, our
inability to get the airlines to repatriate their currency that they earn
through sales of tickets.
“They
find it very difficult to operate and do business. Their inability to get Jet
A1 at some point, and for other operational reasons; I did say that these are
commercial decisions that the airlines will take but with the way the routes
are and with what we have been doing to correct these things that any airline
will pull out.
“A
100 per cent of foreign exchange being required by local airlines is being
provided now. Aviation is dollar denominated, you buy aircraft in dollar, you
service in dollar, you train your crew in dollar; you do everything in dollar.
And we simply do not have the dollar to pay these airlines. But now as we are
talking
“Nigeria
has a population of 177 million serving west and central Africa, 600 million
people market, double that of United States, half of India, equal to Europe; so
this is a very important market and they know and they will stay here. I
believe we are also offering them incentives.”
The
government, he said, has been talking to airlines, such as Egypt Air, British
Airways, Turkish Air, which fly in Nigeria with undesirable aircraft while they
put better aircraft on other routes
“However,
some of them are constrained by some of the infrastructure we have in place.
For example, Emirate will love to bring the kind of aircraft they fly around
the world but the apron in Abuja is not supporting that service. That is why
the aircraft they take to Lagos is different from the one they take to Abuja.
“That
inadequacy is also being addressed and once that is done, we will have
befitting aircraft coming. This has always been a challenge.
“But
the most important incentive is that between now and Wednesday we
will appoint transaction adviser for the national carrier. Once that is
in place, Nigerians will have options, there will be competition, good aircraft
and this will bring the price down.” Sirika, a pilot, said.
The
minister also announced that yesterday’s Federal Executive Council (FEC)
meeting approved additional N1.57 billion for the rehabilitation and
refurbishment of the Port Harcourt airport.
According
to him, FEC approved the rehabilitation cost of the international wing of the
airport from N777,726,669.30 to N1,684,520,310.58 for the original contractor
Messes Entaba.
The
second project, he said, is the refurbishment of the airport terminal
building phase II domestic wing from N746,830,782.12 to N1,411,662,855.67
“So,
very soon we will complete that very important airport, especially the arrival
hall. Port Harcourt airport has been tagged the worst airport in the world but
by the grace of God and the wisdom of council, it will be completed,” he added.
Sirika
also said FEC approved the ratification of climate change Paris agreement and
bilateral agreement against double taxation with Kenya.
He
said there would be improved security and more parking spaces at the Nnamdi
Azikiwe International Airport, Abuja after it is concessioned.
Sirika
said: “Once the airport is concessioned, all these will take place. Just be
patient in the next 24 to 36 months, most of these things will be in place.
Source:The
Nation
Tags
Business