FG’s Investment in Nigeria Air is $12.5 Million

The federal government's investment in the crisis embroiled national carrier, Nigeria Ai, is worth $12.5 million.

Prof. Tilmann Gabriel, who served as the transaction adviser of the project, made this known on Wednesday, January 11.

According to Gabriel, the federal government's investment as startup funding for the airline was $12.5 million, maintaining that the investment was in line with its five percent stake in the project.

He insisted that the process leading to the formation of the airline was transparent, unlike the claim by some stakeholders in the sector, especially the Airline Operators of Nigeria (AON).

He stressed that the federal government had ensured a clear ownership structure for the airline under the Public Private Partnership (PPP).

The transaction adviser also noted that with the total investment, the airline has a solid financial foundation.

According to Gabriel, Nigeria Air has the strategic direction, with a solid business plan for the next 10 years with a total start-up budget of $250 million.

He noted that Nigeria Air was ready to launch with a fleet of Boeing 737 for domestic services, adding that the carrier was currently recruiting many Nigerian aviation professionals to help start the airline operation, Nairametrics reports.

Gabriel said that, "The operations control centre at the Abuja airport is ready to be opened with the most modern IT systems.

"The booking engines on the airline website and app will be available shortly with loyalty credit cards and other innovative pay systems.

"The immediate goal is to introduce all up-to-date customer service systems to make flying a pleasurable and easy-to-use enjoyment.

"Nigeria Airwill be a new competitor in the Nigerian market, adding to the existing airlines.

"Meanwhile, Nigeria Air has applied to join the AON, despite criticisms from the umbrella body of indigenous carriers in the country to support the emergence of the airline," he added.

Gabriel further disclosed that the Air Operators Certificate (AOC) for Nigeria Air had reached phase three of the exercise, out of the five phases an intending operator is expected to go through.

He also stated that the airline would be issued the certificate by Nigeria Civil Aviation Authority (NCAA), which would enable it to operate as a scheduled operator.

Recall that the Airline Operators of Nigeria (AON), in November 2022, kicked against the federal government's plan to give 49 percent of the stake in Nigeria Air to Ethiopian Airlines consortium.

AON noted that Nigeria Air should be a "wholly Nigerian investment", adding that the move would lead to loss of jobs in the country.

Meanwhile, the case is scheduled for January 16, 2023, at the federal high court, Lagos division.

January 12, 2023