The Minister of State for Aviation, Hadi Sirika, has revealed that the Federal Government has approved N47.43bn for the Nigeria Air project in the 2019 budget.
The aviation minister disclosed this in a statement issued by the Deputy Director, Press and Public Affairs, James Odaudu, that “President Muhammadu Buhari directed that the viability gap funding for the project be provided for in the 2019 Appropriation which the National Assembly had graciously done.”
Recall that in November last year, Sirika told stakeholders at an aviation forum that a viability gap funding of $155m (N47.43bn at the official exchange rate of N306 to a dollar) was required for the Nigeria Air project.
The VGF claims came after the FG had in September announced the suspension of the planned commencement of operations of Nigeria Air by the Federal Government.
A viability gap fund is a grant that is made available to finance the ongoing operations or future development of a project that is not currently provided by cash, equity or debt.
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The aviation minister also clarified a statement by the Minister of Transportation, Rotimi Amaechi, which suggested that the Federal Executive Council was divided over the mode of implementation of the national carrier project.
Amaechi had stated at his valedictory press briefing in Abuja last Thursday that, “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.”
However, in the statement issued by Odaudu, Sirika stated that the Nigeria Air project had the full support of the council, which deliberated on it and approved it
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