FG To Own Only Five Percent Equity In New National Carrier, Air Nigeria

FG To Own Only Five Percent Equity In New National Carrier, Air Nigeria
Minister of Aviation, Hadi Sirika

The Federal Government on Wednesday revealed that it will only own five percent equity in the proposed new national carrier, Air Nigeria, while Nigerian entrepreneurs will have 46 percent equity and strategic international partners control the remaining 49 percent.

The government also disclosed that the new national carrier will start flight operations in April, 2022.

The Minister of Aviation, Hadi Sirika disclosed this at the end of a virtual Federal Executive Council meeting presided over by President Muhammadu Buhari at the Presidential Villa, Abuja, on Wednesday, adding that his ministry presented two memoranda which were approved by FEC.

Sirika said: “The next one also is the approval of the outline business case for the establishment of the national carrier and this is the sixth time the memorandum appeared before Council. The sixth time, we got lucky to be passed by the Council.

“The structure of the proposed airline; the government will be own not more than five per cent. So, five per cent is the maximum equity that the government will take, then 46 per cent will be owned by Nigerian entrepreneurs. So, if you add that, it’s 51 per cent.”

Sirika noted that 49 per cent stake would be held by strategic equity partners that would be sourced during the procurement phase.

“This airline, if started, within the first few years will generate about 70,000 jobs. These 70,000 jobs are higher than the total number of civil servants that we have in the country. Its importance has been well discussed, so; I’ll not go back to it. You had discussed it separately also on various fora as to the need for it.”

On the second memo, the minister said: “Today in Council, civil aviation presented two memoranda. The first one is approval for the award of contract for the provision of Automated Civil Aviation Regulatory Equipment, including software support and training, which will be located in Nnamdi Azikiwe International Airport.

“In summary, this is a software that will allow all of the activities of civil aviation regulation to be done electronically on one platform, including payments, including follow-ups on personnel licensing, the medicals, the economic regulation of airlines, safety regulation of airlines and all other businesses within the envelope of civil aviation will be monitored by this single software.

“It is called ‘the truth machine’ in Europe because all of the truth of the regulation of civilisation will appear on this platform. It’s extremely important software that the world has now come to terms with.”

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