Reps. to probe N350bn airlines bail-out fund

The House of Representatives on Wednesday unveiled plans to investigate the disbursement and utilisation of N350 billion bailout fund given to airline operators by the last administration.

The lawmakers who expressed concerns over the challenges facing the sector also emphasised the need for urgent government intervention in the bid to avert imminent collapse of the aviation industry.

The resolution which was passed following the adoption of the motion sponsored by Istifanus Gyang (under matters of national importance, was thereafter referred to the House Committee on Aviation for further legislative action and report back to the House within one week.

In his lead debate, Gyang argued that the signals from the aviation sector is disturbing and there was need to quickly nip the deteriorating situation in the bud.

He explained that: “it is a truism that the Nigerian economy is in recession and while government is battling to restore the economic fortunes of the nation, all the sectors of the economy are confronted with survival battles, the aviation sector inclusive and particular private airline operators”.

“The private airlines and indeed the aviation industry are at risk of imminent collapse as characterised by the sudden stoppage, discontinuance and suspension of operations by major players in the industry including Aero Contractors, First Nation and Arik Air respectively,” he said.

Gyang lamented that domestic airlines whose services, maintenance and operational costs are denominated in hard currency, the current volatile exchange rate and the general economic down turn threatening their very survival.

While calling for the intervention of the House in the bid to salvage the thousands of jobs and imminent collapse and unemployment in the sector, he argued that “happenings with the private airlines is asymptomatic of the fact that the industry has been infected by the virus of economic recession.”

In his remarks, Leo Ogor (PDD-Delta) observed that the Nigerian economy which is currently in comatose has impacted negatively on virtually all sectors of the economy.

“If the airlines can no longer pay salaries what do you expect the airlines to do,” Ogor queried.

In his contribution, Sunday Karimi advised that all the airlines should merge and have a common front to beat the recession in our economy.

“After the merger, then they can now be given the necessary assistance because no airline can survive alone.”

On his part, Mark Gbilah (APC-Benue) moved that the motion should be amended to include the organisation of an investigative hearing on operations of local airlines, the cause of the massive retrenchment in the sector and the cause of why national airlines collapsed in Nigeria.

The speaker at this juncture put the motion for amendment of the original one to a voice vote and the ays drowned the nays.