The Federal Government has approved the sum of N5billion as a bailout for airline operators and other business owners in the aviation sector to cushion the effects of COVID-19 on the country’s aviation industry.
The announcement was made on Monday by the Minister of Aviation, Hadi Sirika.
The Minister said the sum of N4billion has been approved as a bailout for airline operators and an additional N1billion for other business owners in the aviation sector.
Sirika says the government’s decision to offer the bailout is based on recognition of the pivotal role of the aviation sector to the Nigerian economy.
The Minister made the announcement when he appeared at the Senate for a public hearing in respect of the repeal and the reenactment of the laws establishing the Nigerian Civil Aviation Authority (NCAA), Nigerian Airspace Management Agency (NAMA), Accident Investigation Bureau (AIB), Nigerian College of Aviation Technology (NCAT), Nigerian Meteorological Agency (NIMET) and the Federal Airports Authority of Nigeria (FAAN).
The announcement by the Minister comes after the Senate Committee on Aviation called on the Federal government to bail out airlines to cushion the effect of COVID-19.
However, the Chairman of the Senate committee on aviation, Senator Smart Adeyemi says the amount for the proposed bailout is inadequate for airlines who are battling to survive.