• ‘Lack of national carrier responsible for high cost of Int’l tickets-aviation expert
The high expectations of Nigerians to witness a new national career during the administration of President Muhammadu Buhari is likely to be dashed as there are indications that Nigeria Air project may end up at the logo launch as the present administration winds down in a few days.
The recent restraining order by a Federal High Court that barred the Director General of Nigeria Civil Aviation Authority, Captain Nuhu Musa, from issuing an Air Operator’s Certificate to Nigeria Air has been described as the last shot that nailed the project.
Recall that during his campaign in 2014, one of the promises made by President Muhammadu Buhari was to reinvent a national career. He even promised to sell off some of the redundant aircrafts in the over bloated Presidential fleet if elected, to ensure that the proposed national carrier dominates the aviation industry in the African continent.
Two years into the life of the administration, Minister of Aviation, Hadi Sirika announced that the ambitious National Carrier was ready to take off with the launch of its logo at Farnborough International Airshow, in London in July, 2018. He assured that the new National carrier will begin operations in December 2018.
He said, “This will be a national carrier that is private sector led and driven. It is a business, not a social service. The government will not be involved in running it or deciding who runs it. The investors will have full responsibility for this.”
He said that the government will not own more than five per cent of the airline, and will therefore not be directly involved in its running.
“This is an important day for Nigeria. The largest economy in Africa, largest population, GDP of around half a billion dollars, and the only true aviation player in West and Central Africa.
“The Nigerian government will not own more than 5% (maximum) of the new national carrier. The government will not be involved in running it or deciding who runs it.”
The Minister disclosed that the project has the blessings of the Federal Executive Council (FEC) and a committee set up to ensure that the project sees the light of the day.
‘‘The Committee in its report submitted in September 2015 recommended a private sector-led national carrier with 10 per cent government ownership and non-involvement of government in the management of the airline, but the provision of an enabling environment for its operation,’’.
Sirika said following the approval of FEC, a consortium of Transaction Advisers (TAs), comprising Airline Management Group Ltd., Avia Solutions Ltd and Tianaero FZE, were appointed in line with best practices.
He said the TAs completed the Outline Business Case (OBC) Report, which was reviewed by the Infrastructure Concession Regulatory Commission (ICRC), which subsequently issued the OBC Certificate of Compliance.
The minister explained that the estimated funding requirement for the establishment of the project was $300 million up to 2020.
He added that the expected initial start–up capital of 55 million dollars was made up of 25 million dollars for deposit for new aircraft and 30 million dollars for working capital from June to December 2018.
According to him, the estimated working capital for 2019 is 100 million dollars and 145 million dollars for 2020 to be provided by the Strategic Equity Partners who are expected to manage the project.
The Minister consistently shied away from disclosing how much was spent on the ill-fated project so far but was quick to debunk that it did not squander $600,000 on logo design
‘‘Certain media publications that 8.8 million dollars was spent at the Farnborough Air show are unfounded, malicious, misleading, mischievous and baseless.
‘The TAs for the national carrier coordinated the campaign and provided the additional services that included the development of the brand strategy and the media activities relating to the unveiling of the airline.
“Due process was followed in the branding, which included obtaining ‘‘No Objection’’ Certificate with Ref. No. BPP/RPT/18/VOL.1/075 from the Bureau of Public Procurement for payment of N50.8 million for these services is yet to be made.
“No foreign company was paid $600,000 for the design of the logo as speculated,’’ he said.
Sirika said the Nigeria Air project was not lacking investors, stressing that institutions and airlines such as the African Development Bank (AfDB), AFREXIM, US-EXIM, Standard Chartered Bank, Boeing, Airbus and China-Exim Bank, were some of the interested partners.
He stressed that the need to float a national carrier was occasioned by the fact that no domestic airline has successfully filled the vacuum created by the exit of Nigeria Airways.
According to him, only 28 out of Nigeria’s Bilateral Air Services Agreements (BASAs) with 83 countries are active and the carrier will give impetus to the emergence of Nigeria as hub for West and Central Africa.
Affirming the extent of work done on the project, President Buhari at the 3rd Ministerial Performance Review Retreat on Monday in October 2022, said that about 91 percent of work has been done on the establishment of the national carrier for Nigeria, saying the feat is being boosted with the certification of Lagos and Abuja airports by the International Civil Aviation Organisation.
Meanwhile, a Federal High Court sitting in Lagos restrained the Director General of Nigeria Civil Aviation Authority, Captain Nuhu Musa, from issuing an Air Operator’s Certificate to the proposed national carrier, Nigeria Air.
This development came several months after the proposed national airline got Air Transport Licence from the NCAA.
The order was issued after some domestic airlines approached the court, seeking to stop the Federal Government from partnering with Ethiopian Airlines to float a national carrier.
The court order laid to rest further steps being taken in relation to the floating of Nigeria Air.
Some aviation experts have lampooned the federal government for wasting huge resources on the elephant project.
Speaking to New National Star, Kayode Olagunju, an aviation stakeholder disclosed that the federal government wasted about $500 million on the Nigeria Air Project.
He said “It unfortunate that the Minister of Aviation and this administration has wasted so much resources on this venture. You may not believe it but information available to us confirms that the project has gulped over $500 million yet nothing to show for it.
“The only tangible thing that the ministry can show for it is a logo, an office space and a website. This Nigeria Air thing is best described as a conduit pipe for syphoning federal government funds. I am ashamed that this government has turned this project into a scam”.
Adding his voice, another aviation expert that specializes in aviation infrastructure described the Nigeria Air as a scam.
“The Minister has been very secretive about the entire project. Nobody knows what is spent on what. Huge sums are allocated to consultants, logo designers, road show organizers, website development, international licenses and so on and so forth.
“No one knows if any aircraft was procured and at what cost. Types of aircrafts, manufacturing companies etc. It is a shame that the project became a scam, government officials scamming its citizens” he lamented.
Also speaking, Danladi Umar, an aviation consultant lamented that the high cost of international air tickets can be linked to lack of national carriers.
“Every country has its own carrier and it goes a long way to enable citizens to pay for international travels at local rates.
“Nigeria has no national Carrier. The consequence is that air tickets are pegged to the exchange rate. There are no incentives for Nigeria travellers. This is exactly the case in the oil sector where the cost of pump price is determined by the price of oil at the international market.
“This administration has failed in terms of floating the local carrier. Yes, they have done some work in giving the airports a face lift but they failed where it mattered most, which is in the floating of a National Carrier.”
Note that Nigeria Airways Ltd., the moribund national Carrier was founded in 1958 after the dissolution of West African Airways Corporation (WAAC) and was liquidated 2004 by former President Olusegun Obasanjo.
Before it’s liquidation, Nigeria Airways was one of the respected airlines in the world providing efficient air transportation services to Nigerians and non-Nigerians. With about 30 aircraft in its fleet, the airline boldly carried Nigerian flag to all the nooks and crannies of the world- from Africa, America to Asia and Middle East countries
It was a heritage Nigerians were very proud of. It was one of the biggest employers of Labour at the time, having more than 10,000 workers in its employ. Nigerians, especially students who had experienced cheap and almost free flights. It was one of the legacies bequeathed the nation by the founding fathers.
Justifying its liquidation in 2012 at an aviation event held in Lagos, Obasanjo claimed that Nigeria Airways was a failure by the time he assumed office as Nigeria’s President in 1999, and he had no alternative than to liquidate and sell it.
He said “When I was leaving office in 1979 as the military Head of State, I left behind 32 aircraft but 20 years later in 1999 when I assumed office as the elected president, there was one aircraft flying.”
According to him, the airline’s Board of Directors, at the time the firm was liquidated, was utterly corrupt, forming various dubious companies which were used as conduit pipes to siphon funds from the airline, under the guise of servicing and maintaining the lone aircraft.
He added “You would be a very irresponsible leader if you failed to do something about such an ugly development, and I had to do something as the incumbent President of Nigeria. I will not reinforce failure and NAL is a failure and it was not worth being reinforced, when I assumed office in 1999 as the Executive President of Nigeria.”
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