The Federal government has approved N4 billion as a bailout fund for indigenous airlines to cushion the effects of the impact of COVID-19 on their operations.
The Minister of Aviation, Hadi Sirika, disclosed this on Monday in Abuja at 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 stated that the Federal government approved an additional N1billion for aviation agencies to also cushion the sorry state of most of them, which has made payment of salaries difficult.
The minister, however, stated that very soon, the funds would be distributed to the carriers, stressing that the aviation industry in Nigeria is too crucial to fail.
He described the sector both in Nigeria and elsewhere as very important to economic development of any nation.
But apparently unimpressed with the N4billion to airlines, the Chairman, Senate Committee on Aviation, Senator Smart Adeyemi urged the Federal government to do more.
Adeyemi said: “Four billion (Naira) is very little to solve some of the problems of the airlines, which are battling to survive. We urge the government to take charge of the sector. Government needs to give them more and they also need to support in all ways.”
He warned that if nothing is done to assist the carriers, the tendency for them to cut corners is very high in the midst of dwindling liquidity.