Oredola Adeola
I feel it is right to help the government set the record straight, in respect of its recent Roadshow of the logo for the proposed National Carrier, in the United Kingdom. Despite the hue and cry about what is and what is not, in respect of the proposed Nigeria Air, it is evident that the entire project is just a market test, and efforts are being made to bring this dream into reality. That’s fine ….
My worry is in the media hype that the roadshow generated, unfortunately this is for a project that is still being nurtured. I learnt that the Imfrastructure Concession Regulatory Commission (ICRC), has only given the Nigerian Government a certificate to launch the idea based on some conditions, while FG has offered to take 5% of the total sum for entire project, subject to finding investors that will put in the 95%.
I don’t know of any investor, who would risk throwing money to a project that has not fully taken shape. It is worrisome also that this capital intensive project, with a share capital of about $300m is being initiated when the same government is still looking for N242.4billion to fund the 2019 general election.
That December deadline has been projected as the takeoff date, is also suspicious, for a project that was not reflected in the 2018 appropriation bill.
The return of the National Carrier, is a welcome development, but we should recall that we once had Virgin Nigeria a few years ago.
What happened to Virgin Nigeria? What was Obasanjo's intention for unbundling Nigeria Airways? These are a piece of conundrum that should be unknotted going forward.
If today, we have the planes functioning, this would definitely serve as a national pride, but what's the genuineness of this project?
Available facts show that the supposed National Carrier will be a private/public partnership (PPP) project, and that the country's stake is 5%.
Considering that 2019 election is fast approaching, one needs to be very careful, and act with utmost circumspection given this government’s penchant for orchestrated obfuscation and indirection. It may turn out to be a publicity stunt to revamp its battered image.
This same administration made us to celebrate Ogoni cleanup here, Ajaokuta, June 12, Second Niger Bridge, Restructuring e.t.c, without result.
In the case of proposed Nigeria Air, why is the owner of 5% more vocal than the 95%er.
Is the 5% captured in any budget? What structure has been put in place apart from the LOGO? Where is the proposed operational base? What are the routes?
Has the government submitted any ATL application to the NCAA to make the airline operational?
Has the landing/parking rights in any airport been perfected? In absence of co-investors, can owner of 5% solely decide the name and logo of an investment pending arrival of major investors?
I gathered that the government is proposing a 30-plane Airline, and hoping to lease a Boeing 737 or Airbus A320 for 60 months (5 Years) at $250K per month.
Going by the equation, with 5% stake, the FG is expected to purchase a plane, while the investors with 95% stake will provide 29 planes just for a start. Impressive!
So where will the $15m being the 5% of the $300m project cost -the upfront payment grant for the purchase of aircraft contained in the condition- be sourced?
Recall that the Buhari’s administration is still looking for the N242.4 billion requested for the conduct of the General Election.
Why is BIG BROTHER, Nigerian Government doing 5% with its Nigeria Air when, Kenya's fleet size is 40, and Kenya Airways is 48.9% owned by the Government of Kenya.
Why are we doing 5%, when Ethiopia has 100 fleet size, her Ethiopian Airways is 100% owned by government. Morocco's fleet size is 56 and Royal Air Maroc is 100% owned by government of Morocco. South Africa's fleet size is 47 and South African Airways is 100% owned by Government of South Africa.
Rwanda's fleet size is 12 and Rwandair is 99% owned by the Government of Rwanda. Tunisia's fleet size is 29, and Tunisair is 74% owned by the Tunisian government. Egypt's fleet size is 54 and Egypt Air is 100% owned by the Government of Egypt.
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