By Chinelo Obogo            [email protected] 07064781119

Three months after the disbursement of COVID-19 bailout funds to scheduled and non-scheduled operators in the aviation industry, the discord generated by how the money was shared is yet to die down.

 The Federal Government had agreed on palliatives to cushion the effects of COVID-19 on the industry, being one of the worst hit.  But that was on the condition that airlines would show a functional Air Operators’ Certificate (AOC).

In January, about N5 billion was released to the Ministry of Aviation for that purpose.

However, the disbursement of the fund is become a source of discord within the Airline Operators of Nigeria (AON) with some airlines, which claim to have valid AOCs, were allegedly sidelined in the disbursement despite meticulously following the process and submitting their requests for the funds.

Bailout funds

According to the Ministry’s Director of Media, James Odaudu, “N5 billion was released and disbursed. Three billion was for scheduled operators and one billion was for non-scheduled operators.”

From the funds released, N3 billion was given to scheduled operators, N1 billion to non-scheduled operators, while three ground handling companies – the Nigerian Aviation Handling Company (NAHCO) Plc, the Nigerian Skyway Aviation Handling (SAHCO) Plc and Precision Aviation Handling Company (PAHCO) got about N233.3 million.

The National Association of Nigerian Travel Agencies (NANTA) received N196 million; aviation fuel marketers received about N233.3 million, while Airport Car Hire Association of Nigeria (ACHAN) got N100 million.  The total amount of money shared among the beneficiaries was N4,995,999,999.99.

From the N3 billion allocated for scheduled operators, 50 per cent of the 5 per cent deduction from the entire debts of the scheduled operators, which is N75 million went to the Federal Airports Authority of Nigeria (FAAN).  The Nigerian Airspace Management Agency (NAMA) and the Nigerian Civil Aviation Authority (NCAA) got N37,500,000.01 each, being 25 per cent of the 5 per cent deduction from the debts of the scheduled operators to the two agencies.

The NCAA, FAAN and NAMA also received N49,999,990.90 from non-scheduled operators as part of the debts of the chartered operators to them. FAAN received N24,996,995.45, being 50 percent of the five per cent deduction, while the NCAA and NAMA got N12,499,995.45 as 25 per cent of the five per cent deductions to the two organisations.

Operators’ dissatisfaction

Capt. Ibrahim Mshelia of West Link is one of the dissatisfied operators who believes that the disbursement was partial. He said: “My office submitted the necessary documents. I am a member of AON.

There is no leadership of AON as far as I am concerned because we are already in court. The minister and all the relevant people were served. They said we should submit our account and other details to the ministry of aviation for the collection of palliative. We wrote to the minister directly and copied the committee, which was received.

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 “What I can say is that everything seems to be shrouded in secrecy. Nobody knows anything. I know government has given us money and I heard some people have not received. I know other colleagues who have not received anything. It is obvious the ministry just handpicked those they wanted. It appears that we are less in number that didn’t receive. It is obvious a few of us were targeted and for whatever reason, I don’t know. Nobody has called me why I have not received and when I will receive it.”

Femi Adeniji of Tropical Arctic Logistics (TAL) Helicopter Company, questioned why some airlines got palliatives and others didn’t.

 “I have four helicopters that I am operating. They asked us to send account numbers, which we did. Even up to last Friday, I still called the Federal Ministry of Aviation to find out what is going on. Unfortunately, I was in the US when my company’s name was published as among those who will receive the palliative, but we have not gotten anything up till now.

 “They said they were going to give it to us, salaries are still being owed, staff are complaining. If they say they are going to give us, let them give us. They should not put it in the newspapers and nothing happens thereafter.”

However, an industry insider who was privy to the negotiations hit back over allegations of bias and lack of transparency in the disbursement. The insider told Daily Sun that the disbursement was transparently done by the committee that handled the negotiations which was made up of top executives from the Ministry of Aviation, all the Federal Government agencies and was headed by the Director General of the Nigerian Civil Aviation Authority (NCAA), Captain Muha Nuhu and not the AON. 

“The actual amount that was disbursed was N5 billion. Four billion was given to airlines and one billion was given to   catering companies, fuel marketers and ground handlers. When you come to the airlines, they are divided into two; the scheduled and chartered operators. The scheduled operators were given 70 percent of the N4billion, while the chartered operators got 30 per cent of that amount. 

 “The purpose of the money is to enable airlines pay their workers henceforth, not to pay arrears. So, when the number of staff was calculated, it showed that chartered operators have a work force of 2000, while scheduled operators have over 6000 personnel. The disbursement was transparently done. 

 “Ibom Air was not given because it is not a privately operated company. It is owned by Akwa Ibom State. Medview Airline benefitted from the disbursement because its operating licence has been reduced to chartered operations and no more scheduled.

 “About 70 per cent of the remaining one billion naira was given to catering companies and fuel operators. Handling companies and car hire companies also benefited. The committee that was set up to disburse the bailout was made up of top officials of all the aviation agencies and the AON.

Reps wade in

In order to ascertain the cause of the dispute, the House of Representatives Committee on Aviation has said it would investigate the complaints.

The chairman, Committee on Information, Nnolim Nnaji, said the complaints are too weighty to be ignored and said he has resolved to demand from the Ministry of Aviation the detailed disbursement of the intervention fund.

Nnaji said that the committee is aware of the challenges facing the industry and the genuine concerns expressed by the Aviation Minister, Hadi Sirika on the need for Federal Government’s palliative to the industry.

He said some airline operators complained that despite being asked to submit their details which they did, up till date, there has been no response. He gave assurance that though the House had already adjourned for Easter holidays, the committee will cut short its break to look into the matter because of the critical role of aviation in the overall economy of the country.”