Core investors unsettle Nigeria Air
The last minute pull out of core
investors forced Nigeria to suspend the establishment of a national
carrier, Nigeria Air, information and culture minister Lai Mohammed has
disclosed.
investors forced Nigeria to suspend the establishment of a national
carrier, Nigeria Air, information and culture minister Lai Mohammed has
disclosed.
He said in Lagos that the decision became necessary because
the Federal Government resolved not to finance the project alone.
the Federal Government resolved not to finance the project alone.
He noted, however, that the project was
still on course but that the Federal Government was trying to now get a
better funding structure for the project and provide the enabling
environment.
still on course but that the Federal Government was trying to now get a
better funding structure for the project and provide the enabling
environment.
“A government will take a holistic view
of any intended project and if the understanding of government at the
beginning that the project will either be self-financing or would be
financed by her investors and it turns out that
such a project can no longer be financed by investors, either because
they are not forthcoming or that such venture can no longer be viable,
the government, this administration would do a rethink.
of any intended project and if the understanding of government at the
beginning that the project will either be self-financing or would be
financed by her investors and it turns out that
such a project can no longer be financed by investors, either because
they are not forthcoming or that such venture can no longer be viable,
the government, this administration would do a rethink.
“Now, the business of government in
business is to provide enabling environment and it is not to become the
sole source of finance, the sole source of funding and in addition, it
is much more than funding in trying to get our
national carrier.
business is to provide enabling environment and it is not to become the
sole source of finance, the sole source of funding and in addition, it
is much more than funding in trying to get our
national carrier.
“We also need to look at the thinker
aspect, overall, the Federal Government believes that this thing should
be stepped down now till we get a better funding structure but a
situation where this kind of thing would be funded by
government, it can’t do it.”
aspect, overall, the Federal Government believes that this thing should
be stepped down now till we get a better funding structure but a
situation where this kind of thing would be funded by
government, it can’t do it.”
Muhammed also dismissed insinuations that
the Minister of State, Aviation, Senator Hadi Sirika, did not carry the
Federal Executive Council, FEC, along in the entire process, adding
that if things did not work out as planned,
the minister should not be blamed.
the Minister of State, Aviation, Senator Hadi Sirika, did not carry the
Federal Executive Council, FEC, along in the entire process, adding
that if things did not work out as planned,
the minister should not be blamed.
“It doesn’t mean that, you
see you could start a project with a lot of assurances from many
quarters and then at the critical point in time those assurances might
not materialize so, it does
not mean that he didn’t carry us along, from the beginning, from the
start the Federal Executive Council (FEC) was privy to everything, so if
anything happened in between, I cannot blame the honourable Minister
for aviation for that”.
see you could start a project with a lot of assurances from many
quarters and then at the critical point in time those assurances might
not materialize so, it does
not mean that he didn’t carry us along, from the beginning, from the
start the Federal Executive Council (FEC) was privy to everything, so if
anything happened in between, I cannot blame the honourable Minister
for aviation for that”.
The Minister , however, gave the
assurance that other projects on the Aviation Roadmap geared towards
repositioning the aviation sector, including airport concession, MRO,
aircraft leasing company, among others, would be looked
into to see if they could still be executed.
assurance that other projects on the Aviation Roadmap geared towards
repositioning the aviation sector, including airport concession, MRO,
aircraft leasing company, among others, would be looked
into to see if they could still be executed.
“ I think what we should do is to look at
each of these other projects in their own merits and individually and
look at whether they can still be executed, but I don’t think the
government should be condemned or criticized if
it decides to step down a particular project.
each of these other projects in their own merits and individually and
look at whether they can still be executed, but I don’t think the
government should be condemned or criticized if
it decides to step down a particular project.
‘’I think it is in the overall interest
of the country that we don’t embark on a project which has not been well
thought out or a project that would probably have to been abandoned
midway.
of the country that we don’t embark on a project which has not been well
thought out or a project that would probably have to been abandoned
midway.
“ I think that four years in the life of
any country is a short time, this is a work in progress, it does not
mean that we have completely abandoned or ended it,” he added.
any country is a short time, this is a work in progress, it does not
mean that we have completely abandoned or ended it,” he added.
In the meantime, the Central Bank of
Nigeria (CBN) on Wednesday gave a notification to revoke the operating
licences of 182 other financial institutions in the country.
Nigeria (CBN) on Wednesday gave a notification to revoke the operating
licences of 182 other financial institutions in the country.
According to the list released by the
regulator on Wednesday, 154 of the affected institutions are
microfinance banks; six are primary mortgage banks; while the remaining
22 are finance companies.
regulator on Wednesday, 154 of the affected institutions are
microfinance banks; six are primary mortgage banks; while the remaining
22 are finance companies.
The CBN said 62 of the microfinance banks
had already closed shop; 74 became insolvent; 12 were terminally
distressed; while six voluntarily liquidated.
had already closed shop; 74 became insolvent; 12 were terminally
distressed; while six voluntarily liquidated.
The CBN listed the primary mortgage banks
for revocation as Accord Savings and Loans Limited in Lagos that failed
to recapitalise; and Ahocol Savings and Loans Limited in Anambra (state
government-owned) that closed shop.
for revocation as Accord Savings and Loans Limited in Lagos that failed
to recapitalise; and Ahocol Savings and Loans Limited in Anambra (state
government-owned) that closed shop.
Other mortgage banks for revocation are
Trans Atlantic Savings and Loans Limited in Bayelsa (state
government-owned) that became insolvent; Royal Savings and Loans Limited
in Delta State that also closed shop; Amex Savings and
Loans Limited in Lagos that failed to recapitalise; and Supreme Savings
and Loans Limited also in Lagos that closed shop.
Trans Atlantic Savings and Loans Limited in Bayelsa (state
government-owned) that became insolvent; Royal Savings and Loans Limited
in Delta State that also closed shop; Amex Savings and
Loans Limited in Lagos that failed to recapitalise; and Supreme Savings
and Loans Limited also in Lagos that closed shop.
The CBN disclosed that eight finance companies voluntary liquidated; 13 failed to recapitalise; while one became insolvent.
According to the apex bank, the affected institutions are from different states of the federation.
