Nigeria Air launch suspended because there was no provision for it in Nigeria's 2018 budget

NIGERIA'S planned launch of a national carrier in December has been put on hold because the government's Economic Management Team (EMT) was not impressed with the arithmetic surrounding the venture and the tight time schedule.

In July at the Farnborough Air Show in Kent, in the UK, aviation minister Hadi Sirika, revealed plans to float a new national carrier called Nigeria Air. Pointing out that the airline would take off in December, Mr Sirika said that following extensive negotiations with several international airlines and aircraft manufacturers, it would fly to 80 different destination and have a fleet of 30 aircraft.

However, yesterday, the government announced that the plans were being put on hold and it is believed that this was because of objections from the EMT chaired by vice president Professor Yemi Osinbajo. Apparently the EMT recommended that the Nigerian government should not set up a national carrier with public funds, which was accepted by the cabinet.

Mr Sirika said: “I regret to announce that the Federal Executive Council has taken the tough decision to suspend the national carrier project in the interim. All commitments due will be honoured and we thank the public for the support as always.”

It is believed that the EMT wanted the ministry of transport to accelerate the search for strategic investment partners who will finance and manage the new airline rather than have the government commit public money to the venture. In the absence of a borrowing plan for government participation, President Buhari ruled out spending money that is not in the budget.

Promoters of the idea of the new national carrier were therefore asked to work towards the 2019 budget if any government investment is to be involved. Critics and industry experts had raised concerns over the project when it was launched, with many suggesting that Nigeria cannot afford it at this time.

In July, shortly after receiving the Outline Business Case Certificate of Compliance for the establishment of the airline from Chidi Izuwah, the director-general of the Infrastructure Concession Regulatory Commission, Mr Sirika, boasted that the airline would be viable. He also said Nigeria will receive the first set of five airplanes on December 19, with projections that Nigeria Air will make a profit within three years after operations.

According to the sums presented, the proposed airline was expected to gulp $8.8m in preliminary costs and $300m as take-off costs. There is also the issue of the former national carrier Nigeria Airways which folded due to corruption and poor management and the numerous controversies surrounding its winding up have not been resolved, including the paying off of staff.