COVID-19: Senate Laments Over FG N5b Bailout Fund For Aviation Sector

News Rain Nigeria on Monday reports that the Senate has lamented over the N5b bailout fund for the aviation sector.

Speaking on the development at the floor of the House today, Monday, 2nd, November 2020, the House Committee on Aviation, Sen. Smart Adeyemi maintained that the fund will not help in addressing the daunting challenges facing the sector.

He said the N5b proposed to assist the operators in the country’s aviation industry to mitigate the effects of the  Covid-19 pandemic is too meager and inadequate for the sector.

Senator Adeyemi, while reacting to the disclosure made by the Aviation Minister, Sen. Hadi Sirika that the sum of N4bn has been proposed for airline operators and N1bn for other business operators within Nigerian airports as bailout fund for the aftermath of Covid-19.

The minister, who made the disclosure while delivering his speech at the opening of three – days of Public Hearing on six aviation executive bills which include; a Bill for an Act to Repeal the Civil  Aviation Act 2006 and a Bill for an Act to Repeal the Nigerian College of Aviation Technology Act Cap N96 LFN, 2010, held at the National Assembly,  stressed that the proposed bailout will be considered by President Buhari led administration because of the government desire to fully diversify the economy of the nation.

Senator Sirika said the bailout is to keep operators in business after major activities around the aviation industry went down as a result of recession suffered by all the sectors of the economy during the heat of Covid-19.

Sen. Smart Adeyemi, though commending the efforts of the minister is proposing the bailout but Insisted that the amount is too small to cater to the losses suffered by operators and stakeholders in the industry.

Adeyemi noted that, if not adequately provided for, operators may be compelled to cut costs and engage in other unwholesome activities that will put both consumers of services and government at risk.

“The outbreak of the Covid -19Virus is a global and on-going pandemic and countries all over the world are providing bailout funds for airline operators.  Certainly, the aviation industry was the most affected by this virus attack and therefore need all the support possible to resuscitate the Industry. Smart said.