MONDAY EDITORIAL OF THISDAY
When in January 2016 the idea to float a national carrier was being mooted, we warned the current administration against erecting another monument to waste in a period of lean resources. But last week, Minister of State for Aviation, Senator Hadi Sirika, unveiled in London ‘Nigeria Air’ which is expected to be launched in December. “The Nigerian government will support the launch of the new flag carrier with viability funding in a Public- Private Partnership (PPP) arrangement to deliver a national carrier guided by international ICAO standards that will stand the IOSA audit from the start and lead to a fast IATA membership for international operation”, said Sirika.
For a government supposedly fighting corruption, it is a shame that President Muhammadu Buhari has institutionalised an unprecedented disdain for transparency and accountability when it comes to people close to him. Without going through any process, discussions are already being held to buy aircraft with all manner of agreements being floated on behalf of Nigeria in what appears a one-man show. There is nothing to suggest that the National Assembly has any input in this whole idea yet commitments are already being made on behalf of Nigeria.
As we have reiterated on this page, this administration is so enamoured of a ‘glorious’ past that it could go from national carrier to national shipping line to national supply company, etc., just to control an economy it does not understand! Besides, an investment of $300m for a five per cent equity in a venture that is unlikely to be profitable in the medium and long terms is foolish to say the least. It is difficult to fathom the reason behind this wasteful idea other than to conclude, as most people have, that the motivation is more about the personal interest of some people than the good of the nation. In case Sirika and his enablers are not aware, it is important we share with them the information that is out there if only they care to check: ‘Air France’ is just managing to stay in the air while ‘Air India’ is up for sale and no buyer is interested. We already know what befell ‘Alitalia’ and several other national airlines. The question then is: How competitive would a Nigerian national carrier be, especially when it will enter the crowded market with a brand identity of being ‘Nigerian’? In any case, who is missing a Nigerian national carrier?
The pertinent questions are: Why is it an urgent priority to sink $300 million in a national airline for a stake of only five per cent at a time there are several critical but neglected areas? How, in the first place, was this figure arrived at? How will a national airline create the enabling environment for wealth creation or address vital areas of national need? If the government is looking for how to spend $300 million, would it not make more sense to throw such money at social investment in the health and education sectors?
If the government has a strategic interest in the aviation sector, it should emulate the United States’ government. By law, the US government owns upwards of 20% equity in all US airlines but it never appoints board members nor interferes with their running. It only invokes its stake when it needs to commandeer air assets for emergency relief or military airlift. It was used to move military assets to the Gulf to meet operational deadlines for the two Gulf wars and the Afghanistan operation.
That, from what has transpired in this matter, is not the case. Therefore, there is everything suspicious with the idea of investing almost N100 billion of public money to buy 5 per cent stake in an investment that has little or no chance of success.
- To be concluded tomorrow
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