The Federal Government’s announcement that the proposed National Carrier, Nigeria Air, would no longer become a reality was met with a lot of criticism.
Many saw it as another failed project and another broken promise to Nigerians by the Federal Government.
According to the Punch, reports from their sources have now revealed the real reason the Nigeria Air project died a premature death.
The report on the Punch said that ‘the Federal Government was not able to provide the $155m which it needed to make available as part of its seed funding.’
According to the Punch’s sources, the sluggishness of the Nigerian government to release funds probably made potential investors skittish and they eventually backed off.
“The matter was brought before the President at the FEC meeting and it was put on hold. When a matter is brought before council, it is either rejected or passed or the President can say the matter should be stepped down to allow for further consultations and that was what happened. It has not been jettisoned.” said the source
“There was a debate at FEC and expectedly there were differences in opinion. The main cause of the argument was in the legality of the funding. We were asked to get investors and some people were already showing interest but they were waiting to see seriousness on the part of the government.
“They wanted the government to lead the way in putting down the first sum but when the government was not willing to put down its own seed funding, investors began to shy away.
“The initial funding that Nigeria was expected to make available between now and the end of 2019 was about $155m.”