President, Aviation Safety Round Table Initiative (ASRTI), Dr. Gabriel Olowo has urged the incoming administration of Asiwaju Bola Ahmed Tinubu to make payment of trapped foreign airlines’ funds a priority in order to encourage and attract more investors to the sector.
Foreign carriers’trapped funds in Nigeria is in excess of $743 million.
In an interview, Olowo said the issue had, in recent times, portrayed Nigeria as a country that does not respect international trade laws and contract.
According to him, Nigeria must show that it will shore up investor confidence and not the other way round.
Olowo said: “The priority of the incoming government should be first, to pay all the trapped funds to the foreign airlines to zero if you want that sector to flourish so that all the investors will come back. This is to prove that we respect international trade.
“Also, you cannot be begging the airlines to operate into the country, and at the same time the government is stifling their operations. Where do you want them to get fuel to bring down their aircraft here when all the money is kept in Nigeria? Do you expect them to go and borrow to operate their aircraft into Nigeria?
“Maintenance is due every six months, where do you want them to get the money from? Do we have maintenance facilities here in the country, which can force the airlines to do their heavy check maintenance in here? What is the capacity of the maintenance? And if I am lifting fuel in Nigeria, what capacity will they lift at a time? So, the government should pay the debts instantly to zero and tell the world that we are ready to shore up investor confidence.”
He said Sir Richard Branson, founder of Virgin Atlantic Airways, succeeded in other countries, but not in Nigeria because of a breach of contract on the terms of operations for the carrier and lack of respect for international trade.
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Olowo said:” Sir Richard Branson is one of the successful airline operators in the globe. The airline succeeded in the United Kingdom with Virgin UK, Virgin US, Virgin Australia and Virgin Blue. Virgin came here with Virgin Atlantic Airways , but it ran back. Why? It was because of sanctity of contract. Don’t sign what you cannot do. And why Branson was leaving, he issued a bad statement by saying ‘Nigeria is a business destroyer.’
“We need to shore up investor confidence in Nigeria. This is key and it is a foundation to progress in every sector of the economy. Nigeria must honour contracts and this accumulation of foreign airlines’ funds is one of the major breaches that we have as of today in the country.”
Speaking further on what the Tinubu administration administration should do, Olowo said there is need to construct a new international airport terminal at the Lagos Airport saying that the existing facility is overstretched.
Said he: “Secondly, there is need to deliver a modern gateway. The international terminal at the Lagos airport is overstretched, it has expired and we need to shut it down. Strip it 100 per cent and rebuild. The plan for that airport is A,B,C,D, E fingers. We have been parading D and E since 1978, which is 45 years now. What happens to A, B, C fingers? Let’s go and build A, B, C and when that is ready, you can move in there and strip the D and E so that they can join later.
“Then, we can add aerotropolis to it. Aerotropolis will extend to Ikeja. That is what you have in Turkey and Dubai with light rail that will take you to different gates, which is known as concourses And in doing this, we are not looking for government money, private investors will do it. We have to demonstrate consistency. Master plans must go beyond eight years. There must be continuity so that investors will see us as a country that is ready to do business.”