Nigeria Government approves N4 billion bailout funds for domestic airlines

Senator Hadi Sirika, Minister of Aviation on November 2 has said that the Government of Nigeria has approved N4 billion Naira bailout funds for domestic airlines to mitigate the adverse effects of the COVID-19 pandemic on them, according to a news report by Today.

According to the Senate Committee on Aviation chairman, Senator Smart Adeyemi, the approved amount is small. He urged the government to increase the amount.

In a related development, the Minister revealed that the domestic airlines are owning Nigeria Civil Aviation Authority, NCAA, about N19.3 billion naira non-remitted TSC money collected from passengers on behalf of NCAA

Aviation Minister, Hadi Sirika, made all the disclosure yesterday in Abuja during a three-day public hearing to repeal and enact Acts of Nigerian Civil Aviation Authority (NCAA), the Nigerian Airspace Management Agency (NAMA), Accident Investigation Bureau (AIB), Nigerian College of Aviation Technology (NCAT), Nigerian Meteorological Agency (NIMET) and that of the Federal Airports Authority of Nigeria (FAAN).

Sirika also said that the Federal Government approved additional N1b for aviation agencies to also "cushion the sorry state of most of them which have made payment of salaries difficult for many of them". He added that the funds will soon be released to both the airlines and the agencies.

Meanwhile, not impressed with the paltry N4b to airlines, Chairman, Senate Committee on Aviation, Senator Smart Adeyemi urged the Federal Government to do more.

Adeyemi said, "N4b is very little to solve some of the problems of the airlines who are battling to survive. We urge the government to take charge of the sector. They need to give them more and they also need to support in all ways."