The Chartered Institute of Logistics and Transport (CILT) Nigeria has hailed the federal government of Nigeria for electing to refloat a national carrier for the country to take its fair share of the airspace.
The National Executive Director of CILT, Mr. Paul Ndibe who made the feeling of the institute known in an interview with Primetime Reporters in Lagos recently said that the decision was a useful development even as he showed some reservations on the process government was adopting in bringing the airline back on stream.
Ndibe however advised the federal government to do more of consultations so that stakeholders and investors would actually know its position on the venture adding that people were bound to ask questions if government was on its own giving information about floating of a company that it was supposed to own about 5% interest.
In his words,” One would have expected that government would simply have announced maybe the registration of the Nigeria Air and announce its own equity or interest in the organization and then give one or two other information. If government had restricted itself to 5% equity that they are contributing to mean having offices set and initial equipment to start with and leave the rest in terms of the sealing in terms of investments to the investors and not to say it is going to be $300 million or it should be over five years. In saying those things, you are restricting the investment flow into that establishment and that is where people get very confused.
“So, the situation would have been for government to restrict itself by saying we have registered this company, we have registered the name, we have obtained the license, we are contributing not more than 5% of the equity, whatever is the equity but definitely, it will have a sealing, even if they are registered to the tune of that $300 million and they are contributing 5% to that and to say that the 5% will be for the initial office, equipment and to take off, then the money will come in. But for government to go to the point of saying it is $300 million, it will be generated over five years and all that, it means that government is setting a limit to that. That was why people got worried.
“Even at that, government can also encourage investors; leave off the route they will fly because government went to the extent of stating the routes. So, these are the things that really will upset some people. Let the investors determine the routes they will fly, government can advise on quality guidelines for the organization to take off and stop at that. The investors will determine the routes that may be profitable for them, the frequency of flight, the brand, if they want to dominate Africa as a brand or Europe or Asia or whatever”.
Photo: National Executive Director CILT, Mr. Paul Ndibe.
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