The Senate Committee on Aviation has rejected the proposed N5 billion bailout for airline operators and other businesses in Nigeria’s aviation sector.
According to the Committee, the proposed bailout is grossly inadequate to make any meaningful impact or relieve the impact of COVID-19 on the industry.
The committee reached the decision on Monday at the public hearing on six executive bills aimed at fine-tuning regulatory issues as well as effective management of agencies in the Nigerian aviation industry.
The chairman of the committee, Smart Adeyemi, explained that the fund is far less than is required for them to finance aircraft maintenance and retain their workers.
I do not think that N4 billion is what we are talking about. I think the federal government should give the industry all the attention it deserves; substantive support. Four billion is not enough. Yes, you might say they are in business; but their business is the soul of our economy.”
Mr Adeyemi further urged the government to provide sufficient bailout to the airline operators to avoid them “cutting corners” in their operations – “the implication of which is better imagined,” he said.
Speaking to journalists after the hearing, the minister agreed with the Senate over the low offer for bailout funds but noted that it is what the federal government can afford. This, he said, is because both the ministry and many other agencies are “currently struggling.”
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