Mixed reactions trail FG’s N27bn aviation sector intervention
The federal government through the Economic Sustainability Committee headed by the Vice-President, Prof. Yemi Osinbajo has recommended a N27bn intervention fund for the aviation sector, Daily Trust can report.
The committee, which presented its report last week was inaugurated by President Muhammadu Buhari on March 30 to appraise the level of economic downturn caused by the novel coronavirus pandemic.
In the 76-page Economic Sustainability Plan document obtained by our correspondent, the committee while noting that the aviation industry was “hard hit” recommended several stimulus packages for the sector.
However, operators appear unhappy with the proposed fund, saying it is “too paltry.”
Beside the intervention, the committee recommended the establishment of a private sector driven national carrier to generate revenue and contribute to GDP, while creating activity in the wider economy for suppliers, importers, exporters and manufacturers.
According to the committee, the N27bn for the industry has project elements, which include to extend grant support including payroll support to the aviation industry including airlines, handlers, caterers and related services; provision of single digit soft loans, with long term repayment plan; deferred payment of taxes and filing dates;
Others are to “ensure the removal of Value Added Tax
VAT) from airline tickets as approved by FEC; provision of COVID-19 tests for all passengers and crew and waiver of airport rent fees to airport operators for the duration of the lockdown plus one month.”
But operators and stakeholders said the fund was inadequate, considering the losses, which airlines and other allied service providers have recorded.
It would be recalled that Airline Operators of Nigeria (AON) recently claimed to have lost N350bn to COVID-19.
Accounts Manager of Dana Air, Mr. Obi Mbanuzuo, said while the operators appreciated the gesture, it is below their expectations.
He said: “Airlines more than ever need support. There are some we have been clamouring for. If the issues of infrastructure, multiple taxation, fuel can all be considered as soon as possible, this will be appreciated by us as an airline.
President of Aviation Roundtable and Safety Initiative, Dr. Gbenga Olowo described the proposed intervention as “commendable but very necessary and a good attempt by the government given the national income constraints during the year.”
According to him, all the project elements are key to a robust Aviation sector in Nigeria.
Another analyst, Group Capt. John Ojikutu (rtd), who spoke on the recommendation relating to the national carrier, said the proposed carrier “should not be exclusively a government owned nor a private owned.”