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FG disburses N6.25 billion on consultancy, advisers for Nigeria Air

Business 360 by Business 360
November 3, 2021
in Uncategorized
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FG disburses N6.25 billion on consultancy, advisers for Nigeria Air

There are indications that the controversial national carrier, Nigeria Air, may see the light of the day before the current administration winds down, with a new take-off date now set for the first quarter of 2022.

So far, about 40 per cent of the sum (N6.25 billion) has been channelled to working capital, consultancy and transaction advisers’ fees as the Federal Government takes  another shot at floating a national carrier, being one of the 2015 electioneering promises of President Muhammadu Buhari.
The fresh optimism, The Guardian learnt, is not unconnected with a recent headway in the search for credible technical partners and financial backings of the Federal Government year-on-year.

Similarly, the grope for technical partners appears to be ending with the Ministry of Aviation and Qatar Airways closing in on a deal, ahead of Turkish Air and Ethiopian Airlines.

Aviation stakeholders, who have been waiting for the project, are divided on its prospects. At stake are questions on its sustainability in the post-Buhari era, its uphill take-off in the pandemic age and official indifference to a transparent process.  

Inquiries by The Guardian suggested that groundwork on the proposed national carrier had continued unabated behind the scene. An official, who is privy to the charge, led by Aviation Minister, Capt. Hadi Sirika, said, “Nigeria is most likely to have the new airline by 2022 Q1.

“Yes, we said the same thing last year, expecting things to have been concluded by the first quarter of 2021. That failed and is behind us now. What is almost certain is the 2022 date.

“We are almost through with our choice of technical partners. The public will know at the right time. I can assure you that we are almost there,” the top official said.

Findings showed that Qatar Airways is in the lead in a race that has Turkish Air and Ethiopian Airlines (ET). Qatar is a better contender given its strong rating, financial strength, modern equipment and global network. ET may be instrumental in setting up a Maintenance Repair and Overhaul (MRO) facility, according to feelers.

Sirika, shortly after coming to office late 2015, launched an aviation development roadmap. Of priority are a new national carrier, airport concession, aircraft leasing company and a MRO.

The national carrier is to replace the defunct Nigeria Airways that ceased operations in 2003. The replacement was designed as a Public-Private Partnership (PPP) project with the Federal Government likely to own between five and 10 per cent stake.  

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