Home Economy Furore over N4bn domestic airline stimulus ranges as ministry refuses to disclose sharing formula

Furore over N4bn domestic airline stimulus ranges as ministry refuses to disclose sharing formula

by Business News Report

Officials of ministry of Aviation are nervous as controversy over the formula used to disburse the N4billion airline stimulus package has pinched operators against ministry officials. A source in the Ministry of Aviation, that do not want his name in print as he is not authorised to speak on the issue said the current controversy over the modalities used in sharing the the just released N4 billion covid-19 stimulus package for domestic airlines is needles.

According to the source,  ” the idea behind the package is to keep airlines , which, despite the covid-19 pandemic, kept running , be encouraged to remain in business and keep Nigeria aviation industry alive .” There have been reports that some airline operators are not happy with the formula used by the Aviation Ministry in sharing the palliatives. The Aviation Ministry has , however, not made any official statement on the sharing modalities, there are indications  that scheduled  airline operators  received N3 billion , while non- scheduled  got N1 billion . There are also reports that ”  a non-scheduled operator based in Kaduna received N31 million while another which once operated to Dubai and London and which is currently re-organising its operation received N50 million and another which recently welcomed back two aircraft from maintenance got N225 million.”

The report further said ” that a scheduled Carrier based in the North and the current biggest operator with headquarters in Lagos, got the largest amount totally nearly N500 million each. The criteria used for disbursement could be hinged on the fact that they collectively form the bulk of domestic operations and their expansion plans,” the report added.

Aside airlines, ground handling companies, National Association of Travel Agencies, Aviation fuel marketers as well as airport car hire services  are beneficiaries of the palliatives.

“The N4, 995,999,999.90 arrived at is after 5% deductions from all airlines indebted to service providers and regulatory agencies to the tune of N203, 999,990.95 making a total of N4, 796, 000,009.04”. The deductions stand at 50% for FAAN at N75, 000,000.03; NAMA 25% at N37, 500,000.01 and the NCAA also at 25 % for N37, 500,000.01 making a total deduction for scheduled operators at N150, 000,000. 05 bringing the net pay accruable to the scheduled operators at N2, 849,999,999.95,” the reports said.

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