Reps to probe diversion of N120bn aviation intervention fund

The House of Representatives on Wednesday mandated Economic and Financial Crimes Commission (EFCC) to investigate the alleged diversion of the N120 billion aviation intervention fund by some airline operators.

The fund, was disbursed by Central Bank of Nigeria (CBN) in 2012, the report of the House Committee on Aviation, which was considered and adopted at the Committee of the Whole.

Worried by the lingering Economic crisis bedevilling aviation sector, the Committee on Aviation observed that the sector which contributed about $0.7 billion (N137.9 billion) and $685 million into the Nigeria’s GDP in 2014 and 2015, and supports over 159,000 jobs, is adversely impacted, hence requires Federal Government’s intervention.

In the bid to avoid total collapse of aviation sector, the House urged Nigerian National Petroleum Corporation (NNPC) as a matter of urgency, make aviation fuel available regularly at affordable price and make effort to refine aviation fuel (Jet A1) locally.

The House also emphaised the need to meet with management of all aviation regulatory agencies including FAAN, NCAA, NAMA, AIB, among others to deliberate on the possibilities of denominating the aviation sector in local currency (naira).

The lawmakers also noted with displeasure the increasing termination of operations by international airlines namely: Air Gambia, Delta Air, Emirates, Iberia, United Airlines, among others, which have relocated to neighbouring countries like Ghana.

According to the report seen by BusinessDay, “this mass relocation is occasioned by a cumulative loss of about N64 billion by foreign airlines in the wake of the new foreign exchange policy of CBN.”

Considering the evident unrest being generated by the proposed concession of the airports, the House urged Federal Government to suspend the plan in the interest of over 11,000 workers and retirees of FAAN and 50 million users of the airports.

The Lower Chamber also resolved to invite Asset Management Corporation of Nigeria (AMCON) to appear before the House and fully brief it on the plan of action to resuscitate Aero Contractor airlines, just as they stressed the need for labour Union in the airline industry to discuss the continuation of the redundancy negotiations between management of Aero Contractors airlines which was suspended by AMCON’s refusal to finance the outcome of the negotiation.

They also urged management of Arik Air and other airlines to reconcile their accounts with FAAN, NAMA and NCAA with the view to pay off their debts.