The Senate has opposed the proposal by the Federal Government to give N5 billion bailout to players in the Aviation sector due to the losses they suffered as a result of the COVID-19 pandemic.
The senators made their views known on Monday.
However, the Minister of Aviation, Senator Hadi Sirika, told the Committee that the Federal Government would soon begin to disburse N5 billion bailout for the operators of the sector.
The Minister said the airline operators would get N4 billion, while other businesses in the Aviation sector would be given N1 billion.
He said: “The Federal Government has approved N4 billion as bailout for the airlines and N1 billion for other businesses within the civil aviation.
He said: “We are already putting arrangements for the disbursement in place and once we start, it would be transparently done.”
But the Senate Committee Chairman, Senator Smart Adeyemi, said the N4 billion would not be enough to keep the airline operators in business.
Adeyemi said the N4 billion approved for the airline operators was too small going by what was happening globally in the aviation sector.
He said: “If we really want to keep the airline operators in business, and we don’t want them to close shops and go home, the Federal Government should shore up the amount it wanted to give them.
“For a developed nation like Nigeria, we need to encourage the airline operators to remain in business.
“The situation would be worse if we fail to support them and they would have to be cutting corners.
“Let us look at the cost of spare parts for the airlines and duties that they perform.
“Though, we might argue that the business is a private one, but it is centred around safety.
“The N4 billion approved for the airlines by the Federal Government is too little to make any impact on the operations of the airlines.
“If you want to keep the airlines in business and you don’t want them to start cutting corners, there is need to look at the airlines with a view to giving them substantive supports.
“If they start cutting corners, that will be worse for the industry.
“We may not be professionals in the sector, but we know how some of the airlines outside the country operate.
“The role of aviation cannot the over-emphasised. Minister, you have a role to play to take the issues of the airline operators to the Federal Executive Council.
“I don’t know if the Central Bank of Nigeria is here, but they too have a role to play to ensure safety in the sector.
“The Honourable Minister should still extend our demands to the Executive Council and see how the Central Bank of Nigeria could come in that regard.”
Responding to Adeyemi’s submissions, the Minister admitted that the amount was small, but that the National Assembly would need to play a crucial role to increase the amount approved.
Sirika said: “I agree that the N5 billion we approved as bailout to the sector was small but there is nothing much we could do about it.
“We are also having difficulties in funding some critical projects being undertaken by the Federal Government, but the National Assembly could also use legislative powers to approve additional funds for the sector.”
Reacting to the House of Representatives’ suspension of the proposed concession of four airports by the Aviation Ministry, Sirika said the action was taken in error.
He said: “The House committee took the action because I was absent at the budget defence session.
“I have been here in the Senate for the public hearing of six executive bills, which are critical to the overall growth of the aviation sector and I will still be here tomorrow (Tuesday) and Wednesday.”
He said the essence of the executive bills was to address the genuine concerns of all the stakeholders in the aviation industry.
The Senate panel chairman said the repeal and re-enactment of the six executive bills were aimed at enhancing the operational framework and the removal of the seeming ambiguities that inhibit the international best practices within the Air transport Sector.
He said: “The Aviation industry is a dynamic world in itself.
“Consequently, continuous changes and upgrades must be made to meet safety needs and promote economic growth.
“We must, therefore, continue to strive to go beyond expectations if we are to achieve the best Aviation solutions possible.”
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