•N90m incurred for entire project •’No $600,000 payment to foreign airline’
THE Federal Government has made clarifications over the suspension of the national carrier project.
It said only N90 million was incurred for the national carrier project, adding that it was yet to make full payment to those who did the job.
Contrary to claims that the project was suspended because of investors’ apathy, Minister of State for Aviation Senator Hadi Sirika said so many people indicated interest in the project.
He denied claims that the Federal Government paid a foreign company $600,000 for the design of the Nigeria Air logo.
The minister spoke in Abuja yesterday at the 5th edition of Aviation Stakeholders Forum.
He said the idea that Arik and Aero be merged to establish national carrier was not tenable.
On the amount incurred so far over the project, he said: “The transaction advisers for National Carrier coordinated the campaign and provided the additional services that included the development of the brand strategy and the media activities relating to the unveiling of the airline.
“Due process was followed in the branding, which included obtaining ‘No Objection Certificate’ from the Bureau of Public Procurement for the sum of N50,893,000. Payment for these services is yet to be made.
“Farnborough Airshow is a bi-annual Global Aviation event, which provided a perfect opportunity to unveil the National Carrier. It created visibility and connected manufacturers, investors and financiers. It also gave opportunity to showcase all the projects in the aviation roadmap.
“As often the practice in such events, the services of a consultant were retained to arrange for the participation of the Nigerian delegation. Hiring of exhibition booth, meeting venues, obtaining relevant passes for delegates, facilitating meetings with prospective investors, logistics, souvenirs, branding materials, meals etc.
“Due process was followed in retaining the services of the company and ‘Certificate of No Objection’ Ref. No. BPP / RPT/ 18/ VOL 1/095 in the sum of N40,219,769.20 was obtained. Payment to the consultant is yet to be made.”
He added: “Apart from commitment in respect of transaction advisory services, branding and participation at Farnborough air show, no other expenditure has been incurred on the Nigeria Air project.
“So, my dear brothers and sisters, it is not $8.8 million I paid. I swear by Allah who created me, I also swear by Allah who created me that it is this amount I have shown you that we paid for all of the activity.
“No foreign company was paid $600,000 for the design of logo. If they have proof that I paid such amount of money, they should show it because it is public purse. If I did anything wrong, I would be sent to jail.
“Judges were prosecuted in this government and ministers. So, ministers like me can also be prosecuted, if I do wrong.
“As far as I am concerned, you will not find me with financial misappropriation. I am too young and too ambitious to smear my name. Honestly, such money was not spent and I don’t know where people got the figure of N1.2 billion from.
“All that was spent and I stated in my presentation is N40 million and N50 million and all of it has not been paid to people, who did the job and it is transparent. We also said the purpose for which they are and the payment vouchers are there.”
On the investors and partners, who have so far indicated interest in the project, he said: “We do have partners. Those who have indicated interest in the project are: Islamic Development Bank (IsDB), African Development Bank Group (AfDB), African Export–Import Bank (AFREXIM), Export–Import Bank of the United States (US-EXIM), Standard Chartered Bank, Boeing, Airbus, Deutche infrastructure finance, Qatar Airways, Ethiopian Airlines, French and United States (U.S.) Governments, Commercial Aircraft Corporation of China (COMAC)/ China Civil Engineering Construction Corporation Ltd (CCECC), West African Development Bank (BOAD), Export–Import Bank of China (China-Exim) and others.”
Sirika also said government intends to allow Nigerians to also grow their business.
On the amount required to kick start the project and sustain it, he said: “Estimated funding requirement for the establishment of the project is $300million up to 2020. Initial start–up capital of $55million made up of $25 million for deposit for new aircraft and $30 million for working capital from June to December 2018.
“Estimated working capital for year 2019 is $100 million, estimated working capital for year 2020 of $145 million is to be provided by the strategic equity partners who are expected to manage the project.”
He explained that the name of the national carrier ‘’Nigeria Air‘‘ was obtained by engaging the general public through social media campaign where over 400,000 persons were engaged within one week of campaign on Facebook.
On the importance of the national carrier, the minister said no domestic airline has evolved to fill the vacuum left by Nigeria Airways
He stated that only 28 out of Nigeria’s Bi-lateral Air Service Agreements (BASAs) with 83 countries are active on national carrier.
On the merging of Arik and Aero, he said: “The suggestion that Aero and Arik Airlines under AMCON be merged to form a National Carrier is not tenable as national carrier would get entangled with huge indebtedness of the airlines, litigations and other encumbrances.”
To avoid accidents and boost safety and security around the airport, the minister added that aviation security would start bearing arms in three months’ time.
