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*FG, Nigerian investors to own 51 per cent equity

Excluding any last-minute changes, the new national carrier, Nigerian Air, will begin flight operations from April 2022.

The Minister of Aviation Hadi Sirika disclosed this on Wednesday while briefing State House Correspondents at the end of the virtual Federal Executive Council meeting presided over by the President, Major General Muhammadu Buhari (retd.) at the Presidential Villa, Abuja.

The Minister explained that in the new national carrier, the federal government will own not more than five per cent equity shares. While Nigerian entrepreneurs and prospective international strategic partners will own 46 per cent and 49 per cent equity shares respectively.

He explained that the Federal Executive Council approved the new national carrier, adding that the new carrier in a few years after it goes operational, would generate about 70,000 jobs which he said is higher than the total federal civil servants in the country.

Sirika recalled that over 400,000 Nigerians participated in choosing the name which was unveiled in 2018.

He said, “Today in Council, civil aviation presented two memoranda. The first one is approval for the award of contract for the provision of Automated Civil Aviation Regulatory Equipment, including software support and training, which will be located in Nnamdi Azikiwe International Airport.

“In summary, this is a software that will allow all of the activities of civil aviation regulation to be done electronically on one platform, including payments, including follow-ups on personnel licensing, the medicals, the economic regulation of airlines, safety regulation of airlines and all other businesses within the envelope of civil aviation will be monitored by this single software.

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“It is called ‘the truth machine’ in Europe because all of the truth of
regulation of civilization will appear on this platform. It’s extremely important software that the world has now come to terms with.

“The contract was given to Messrs. Arif Investment Nigeria Limited, who are representatives of Empik GmbH. This Empik is the creators of this software, one of its kind in the world, at the sum of N1,492,520,325, which will be including 7.5% VAT and a completion period of six months. So that’s the first memoranda.

“The next one also is approval of the outline business case for the establishment of the national carrier and this is the sixth time the memorandum appeared before Council. The sixth time, we got lucky to be passed by Council.

“The structure of the proposed airline; the government will be owning not more than 5%. So, 5 per cent is the maximum equity that government will take, then 46% will be owned by Nigerian entrepreneurs. So, if you add that, it’s 51%.”

Sirika added that with a 51 per cent share, Nigerians will own the majority while 49% will be held by strategic equity partners that will be sourced during the procurement phase.

He continued, “This airline if started, and within the first few years will generate about 70,000 jobs. These 70,000 jobs are higher than the total number of civil servants that we have in the country. Its importance had been well discussed so; I’ll not go back to it. You had discussed it separately also on various fora as to the need for it.

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“But one important item is the AU agenda 2063, which speaks to the integration of Africa, which speaks to the cause and trade within Africa that is intra-Africa and to which also another flagship project of AU agenda 2063 called the Single African Air Transport Market.

“Now, the only way, the quickest way that you can integrate Africa is by air because if you want to interconnect all the 54 nations of Africa, via rail or road, or waterways, which is even impossible, the quantum of money that you need to do all of these, the time it will take to develop this infrastructure, as well as the maintenance cost, is almost prohibitive.”

The minister affirmed that the target is “doable, it’s time-taking, but with aviation, within a year, once the right policy is in place, like SAATM, you can connect Africa and then, of course, the needed integration will happen. Part of AU agenda 2063 So, these are the two memoranda that were submitted, and gladly they were passed by Council.”

“The name is Nigerian Air which of course, if you remember back in time, this was subject to the national debate and 400,000 people participated, choose the name, the colour, the logo, everything and it was produced that time. It was launched also in Farnborough as far back as 2018.

“So, the business case is a public document. It will be on our website; you can download it and we can give you copies. This airline will pick up and start, by God’s grace, on or before April 2022.”

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