120bn Aviation Sector Bailout: CBN, Others Queried

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120bn Aviation Sector Bailout: CBN, Others Queried

By Correspondent

The upper legislative chamber of the National Assembly on Monday questioned the Central Bank of Nigeria, CBN, over its roles in the alleged mismanagement of N120 billion made available to the aviation sector from the N500 billion intervention fund by the Federal Government, FG, in 2011. The senate further took what it termed exception to the roles played by beneficiaries of the fund, which power, small and medium scale enterprises, SMEs, also benefited from. In the investigation carried out by the Senate Committee on Aviation and Anti-Corruption, it was alleged that N120 billion allocated to the aviation sector as a bailout from the entire N500 billion intervention fund was mismanaged. But surprisingly, the Transportation Minister, Rotimi Amaechi, informed the senate investigation committee that his ministry and agencies under it were not aware of the fund. This no doubt prompted the committee to make a request that the CBN governor, who was represented by a Director, Mudashiru Olaitan, to give an explanation as to how the said sum was utilised in view of the financial problems still bedevilling the sector. In explaining, Olaitan noted that out of the N120 billion intervention fund injected into the sector, only N39.5 billion had been recovered while the balance of N81.2 billion was still outstanding. The director equally confirmed before the senate that some of the 10 Airlines that benefitted from the fund were now moribund. This, according to him, was against the objective of the fund. The dead airlines according to him include AirNigeria and Chanchangi Airlines, while Arik, Dana, Aero, Kabo, Overland, First Nation, Odenegene are the ones still in operation on the strength of the fund. Olaitan added that the responsibility for monitoring the implementation of the fund was given to the Bank of Industry, BoI, because it facilitated the loans. 

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