The spokesman of Airline Operators of Nigeria (AON) and the Chairman of United Nigeria Airlines, Professor Obiora Okonkwo has called on the federal government to offer N250 billion soft loan to domestic airlines as part of ways to cushion the effect of fuel subsidy removal on the aviation sector.
Speaking recently in Lagos at the Annual All Markets Conference of Indigboamaka Progressive Market Association, Okonkwo said such amount would go a long way in boosting the economy through the sector, explaining that the loan will not be grants or free money like the intervention fund by the federal government, but a soft long term loan with single digit interest.
He said government should rather look at how it could use the savings from the fuel subsidy to strengthen business owners in the private sector in order to stimulate the economy and create wealth.
“I am one who always supports anything that can be done to help the people, I advise that if government has made up its mind to do that, (give out N500bn as palliative to Nigerians), there must be transparency and ensure that it gets to who needs it. However, I will always advise that giving palliative, handouts is never a solution to our problems, they should look at how they will use the savings from the fuel subsidy to strengthen business owners and the private sector, to stimulate the economy, to create wealth.
“If the federal overnment can set aside about N250 billion for the aviation sector as soft loans, not grant or free money to the aviation sector, what it means is that there will be more aircraft, which can be deployed to some of the new routes. It can also energise and capitalize on us going to the international routes.
“The outcome is that there will be more people employed, revenue generation by the airlines and the government will make more money. Flying overseas will bring about foreign exchange earnings and it will reduce the pressure. By and large, it will help people who don’t have jobs. This is not palliative, it will increase revenue, create wealth. My take is that while government is taking the other side of the handout, it is also important that they use the resources to strengthen the private business owners, these are the people who used their guaranteed capital to create wealth, jobs and grow the economy.” he said.
