…as House domestic operators kick over 4% equity to Ethiopian airlines
MARGARET CHIDERA
Minister of Aviation, Hasi Sirika, has assured that the Nigerian national air carrier will take-off before the end of December 2022.
Sirika gave the assurance at a meeting with Femi Gbajabiamila, Speaker of the House of Representatives and House committee on Aviation in Abuja, National Assembly, saying President Muhammadu Buhari had at the just concluded Ministers’ retreat, gave a marching order to ensure that the goal was achieved before the end of the year.
The Minister also, disclosed that, already, 20 aircrafts have been ordered for training purposes while nine had been delivered.
He said: “The national carrier is in the works and we have advanced significantly and just yesterday, Mr. President in concluding the retreat, directed that this airline must work between now and December and, it will work by God’s grace.
“We have ordered 20 brand new training aircraft that uses petrol. All these are in the national carrier efforts.
“We do believe for the reasons I said in this address, we need to have one. And it’s not as what people think about an ego or to own something and say it belongs to Nigeria, no. It is to structure it in such a way that it will come to stay. We are not going to end up with another Kabo or Okada and Chanchangi.
“We have also, given every single Nigerian the opportunity, especially those in the sector to participate in this airline so that we can create an airline that is proper, well set up and stand the test of time and dynamics.
“We have so far from all the submissions identified partners and investors, and we are currently negotiating and processing the AOC. We are twerking the business case in such a way it will give us advantage and set in most efficient manner. So, I want to commit here, by the grace of God, between now and the end of the year, the airline will work.”
Sirika further said the cargo terminal of Abuja international airport will be ready in six days as most of the items have either been concluded or about to be concluded.
“The ones in Lagos, Port Harcourt, Kano, Enugu are in various stages of completion. They will also be completed before we leave office by God’s grace. Some are coming up like the one in Ekiti, Jos, Katsina. The contracts have been awarded and we will put them in place before we leave and all of these facilities will be in the hands of private sector.
“We won’t sell them because we are social democrats. We believe that the assets belong to the people and the country but give it to the private sector to make a better use and earn more for the government. This is very different from the sale of assets.
The aviation Minister also added that all international airports in Nigeria have been made free zones, where Valued Added Taxes, (VATs) and others are removed from people who are willing to do business.
“I am happy to announce that all our international airports have become free zones. That is also a roadmap item. I believe this will help aviation entrepreneurs a great deal for those who are willing to invest heavily into this venture.”
He equally told the Committee that the country has five percent equity, while investors have 46 percent share, with 41 percent share for Ethiopian Air, saying the government decided to restrict itself to five percent equity, because it does not want anything with its running.
” For now, it is not Ethiopian Airline only. It is an Ethiopian Airline consortium. Which the full business case will disclose. It is the structure that the business case has recommended; that there should be five percent for government.
“That should be 46 percent of Nigeria entrepreneurs. And the remaining international partners. And this partner in this case happens to be the consortium by Ethiopian Airlines.
“Ethiopia is the second most populous country in Africa, with 120m. Nigeria is the most populous with 250m. So, connecting the market, is a combination of two countries for Africa,” Sirika said.
Gbajabiamila had raised concerns over the project, demanding clarifications on some issues addressed by the Minister.
He said: “The issue of national carrier is very important. It is something we are all paying attention to. We just want to make sure we get it right. There have been some misgivings. Some issues have been raised. But there are issues that need clarification.”
The lawmakers expressed worry over the 41 percent equity allotted to the Ethiopian Airlines in the proposed national carrier, Nigeria Air while the country has only five percent equity.
They argued that giving Ethiopian Airlines, which is solely owned by the Ethiopian Government 41 per cent equity in the proposed national carrier amount to mortgaging the interest of Nigeria to the African country.
Nnolim Nnaji, chairman of the House committee on aviation, faulted the structure of the proposed national carrier, saying the country would not benefit from the proposed venture.
In his contribution, Roland Iyayi who spoke for the Airline Operators of Nigeria, (AON) said some domestic issues were not addressed in the project which does not augur well with the country.
He said: “Many issues have not been addressed by this proposition. These issues must be addressed to be of benefit to Nigerians. There is need to have a structure that takes the interest of the country and domestic airlines.
“Domestic airlines can be equipped to become national carriers. The operations of the Nigeria Air could stifle domestic operators if not properly managed.”
On his part, Allen Onyema, vice president of AON who insisted that domestic airlines have to be carried along, said: “the manner Ethiopia is coming into the arrangement for Nigeria Air could cause existential problems for indigenous airlines.
“There is need to carry domestic airlines along in the process. Let us come together as it is not too late to do so. If the kind of support given to international operators is extended to local operators, we would do better. We do not want Ethiopian Airline to come in and ravage our country,” Onyeama noted.
