The division among members of the Federal Executive Council (FEC) on the modality for the establishment of Nigeria Air, caused the suspension of the national carrier.
The disclosure was made on Thursday the Minister of Transportation, Rotimi Amaechi, at a valedictory press briefing in Abuja.
According to Amaechi, while some members of the cabinet supported the idea that the federal governments invest in the project, and sell the equity later, others were of the view that investors should be brought in, to be given the carrier’s franchise.
“On national carrier, (the) cabinet is divided on the issue of modality. There are those who believe that the Federal Government should invest and then we can sell the equity later.
“There are also those who believe that no, and from day one they say let us get investors in and give them the franchise of Nigeria Airways or Air Nigeria or whatever is called. That is where we are and that is what held it down. But as for whether it is still in our plan, it is and has not been abandoned”, Amaechi said.
Meanwhile, the Minister has revealed that the Chinese government had insisted on the country opening a sinking fund as well as an escrow account,for purposes repaying the loans obtained for the construction of rail projects, particularly the Abuja-Kaduna rail.
Consequently, the Minister has directed the Permanent Secretary of the Federal Ministry of Transportation, to ensure that the Nigerian Railway Corporation (NRC) open the necessary accounts, which would facilitate the repayment process.
His words: “Permanent secretary hold him (NRC boss) to that instruction and the instruction is that all the money you get from Kaduna-Abuja railway every month, put it in an account. Remove the cost of operation. Whatever remains, let us start paying back, let’s develop a sinking fund or an escrow account where we pay that money into.
“So that we can even on our own start the payment before the Federal Government starts paying. Why I say this is because when we got to China, they insisted because of what they experienced with Kenya, Somalia and Sudan on their inabilities to pay back.
The Minister added: “They insisted that we must open two kind of accounts, an escrow account and a sinking fund account. The sinking fund account will require that every year we will put money there which is for the repayment of the loan, while the money for the management of that operation will be put in the escrow account.
“Let them put that money in the required account. But for now nothing has been repaid. It is good you asked that question because I gave them that instruction and I’m not sure it’s been implemented up till now”.
Stella Enenche, Abuja
