NACCIMA lauds FG’s planned bailout for domestic airlines amid COVID-19

NACCIMA DG, Ambassador Ayo Olukanni

The Nigerian Association of Chambers of Commerce Industry Mines and Agriculture (NACCIMA) has joined other Aviation Stakeholders to laud the promised Bailout by the Federal Government for domestic Airlines in the face of covid-19, which has practically grounded them.

This was disclosed recently by the Director General,(DG), NACCIMA, Ambassador Ayo Olukanni, who said, NACCIMA is of the view that in the face of covid-19, and its impact on the Nigerian Aviation sector; there is an immediate need for a Rescue Package and welcomes the reassurance by the Federal government to support the Aviation sector at this period of its need.

As a seasoned diplomat and former Nigerian Ambassador to Israel and Australia Olukanni said, NACCIMA is of the view that special attention should be paid to the Aviation Industry in form a (Special Rescue Package)for the Aviation Industry.
He noted that, such a package, must include, funding and financial support and waiver of Tax and other fees.

To ensure that Nigerian Airlines and its work force and indeed the entire industry survive covid-19 and plays its role in rebuilding the economy Post covid era, he noted further that, “Globally the Aviation sector across the world is one of the most visibly hit with closure of Airports, drop in Passengers and grounded planes across the world and thousands of workers either laid off or on forced leave. In Nigeria,the situation has been the same and speculation is that the industry has lost about N21 billion Naira.

“This sector therefore deserves a special package. The objective should be to save the sector from total collapse and reposition these airlines to carry out strategic operations at this period, be able to rebuild their businesses post COVID-19 era. We strongly recommend that domestic Airlines with the capacity to do so should be patronised to convey essentials materials drugs some food items, PPE, needed medical personnel etc as may be required across the country”.

The DG added that, on evacuation of Nigerians back home, Domestic Airlines should be fully involved in the international airlifts and repatriation of these Nigerians stranded abroad. Some of the Airlines have demonstrated they have the capacity to do so and they should be given the opportunity to do so rather than patronising foreign Airlines.

Ambassador Olukanni said, the time has come to raise full support for Nigerian Aviation Sector, Prior to this period it was struggling.

In his words “It should not be allowed to go under because through their operations and resumption of flights, Domestic operations will gain traction and this will help these airlines to gain a foothold in the sub region and subsequently international routes. Tax relief, waivers of fees on planes currently grounded should be considered as part of the support package. Likewise consideration should be given to a review of their debt profiles with a moratorium on existing loans for next 2 years. Where consolidation will enable economy of scale this can be considered as part of the bail out programme”.