N300B aviation intervention funds to airlines wrongly applied-Babalakin

 

*Seeks N200B debts payment owed Bi-Courtney

Chairman Resort Group, Dr. Wale Babalakin (SAN) stated that the over N300 billion given to airlines to revive their operations some years back was wrongly applied, adding that the nation’s aviation sector would have developed better than what it is now had government the funds judiciously.

Babalakin while addressing the media on the occasion to mark the tenth year anniversary of Nigeria’s best airport terminal, the Murtala Muhammed Airport 2 (MMA2) appealed to the Federal Government for the payment of N200b owed Bi-Courtney Aviation Services Limited.

The business mogul explained that as far back as 2012, the Federal High Court awarded damages of N132b to Bi-Courtney, adding that six appeals against the judgment in the Court of Appeal had been dismissed.

“Even the appeal to the Supreme Court by Arik Airlines through Ojemaie holdings was also dismissed. No nation can truly achieve its potential if it treats its dynamic citizens this way”, he added.

He added that the Supreme Court had ruled that the Federal Government through the Federal Airports Authority of Nigeria (FAAN) owes his firm, Bi-Courtney Aviation Services Limited (BASL) N100B after the deduction from his indebtedness to the firm.

He noted that most of the big airlines like Arik, Aero collapsed because  government rather than develop the industry decided to give money to ‘charlatans’, leaving a debt of N300b owed to the Nigerian creditors.

He stated that if a fraction of this had been well applied, airlines like Chanchangi and few other airlines from going into extinction.

In a bid to catalyse financing of the real sector of the Nigerian economy, the Central Bank of Nigeria had, in accordance with Section 31 of the CBN Act 2007, approved the investment of the sum of N500 billion Debenture Stock issued by the Bank of Industry (BOI).

The sum of N200 billion was set aside for the refinancing/restructuring of SME/ Manufacturing portfolios while the sum of N300 billion will be applied to power and airline projects.

The carriers got the loan at7 percent interest rate for 10 to 15 year tenor. The 10 airlines that benefited from the funds include: Arik Airlines, Dana Airlines, Aero Helicopters, Kabo Air, Caverton Helicopter, Overland Airways, First Nation Airways, Chanchangi Airlines, Odenegene Air, and Air Nigeria.

Out of the 10 airlines that benefited from the fund, two of them: Air Nigeria and Chanchangi have become moribund. Air Nigeria collected the largest chunk of N35.5 billion.

Speaking on aviation infrastructure deficit, the Senior Advocate of Nigeria noted that government cannot develop aviation facilities because of lean resources that are competing with other developmental projects like education, electricity, hospitals and many other issues.

He stated he would back concession of most of the airports in the country only if it would be made transparent.

Speaking in the same vein, Chief Executive Officer of Bi-Courtney Aviation Services Limited, Capt. Jari Olubunmi Williams MMA2 has handled over 20 million passengers, 400,000 flights and created employment opportunities for over 100,000 people in the past 10 years.

His words, “Despite the opposition that has stifled the project, MMA2, is a product of courage and tenacity. This is significant because what started out in a modest way has become the benchmark for how airport terminals should be run.

 

“This is the first successful PPP in Nigeria. MMA2 has changed the face of the aviation industry, leading to airlines and passengers demanding for better services from government-run airports. The courage to maintain the facilities amidst stiff opposition is a lesson for private investors wishing to invest in the concession opportunities now available by government”, he added.

 

William stated that the Chairman of BASL has demonstrated his commitment to use private enterprise for the provision of public infrastructure while constantly fulfilling our obligations to stakeholders, despite the challenges in keeping to the concession agreement signed with government.

 

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N300B aviation intervention funds to airlines wrongly applied-Babalakin

*Seeks N200B debts payment owed Bi-Courtney

Chairman Resort Group, Dr. Wale Babalakin (SAN) stated that the over N300 billion given to airlines to revive their operations some years back was wrongly applied, adding that the nation’s aviation sector would have developed better than what it is now had government the funds judiciously.

Babalakin while addressing the media on the occasion to mark the tenth year anniversary of Nigeria’s best airport terminal, the Murtala Muhammed Airport 2 (MMA2) appealed to the Federal Government for the payment of N200b owed Bi-Courtney Aviation Services Limited.

The business mogul explained that as far back as 2012, the Federal High Court awarded damages of N132b to Bi-Courtney, adding that six appeals against the judgment in the Court of Appeal had been dismissed.

“Even the appeal to the Supreme Court by Arik Airlines through Ojemaie holdings was also dismissed. No nation can truly achieve its potential if it treats its dynamic citizens this way”, he added.

He added that the Supreme Court had ruled that the Federal Government through the Federal Airports Authority of Nigeria (FAAN) owes his firm, Bi-Courtney Aviation Services Limited (BASL) N100B after the deduction from his indebtedness to the firm.

He noted that most of the big airlines like Arik, Aero collapsed because  government rather than develop the industry decided to give money to ‘charlatans’, leaving a debt of N300b owed to the Nigerian creditors.

He stated that if a fraction of this had been well applied, airlines like Chanchangi and few other airlines from going into extinction.

In a bid to catalyse financing of the real sector of the Nigerian economy, the Central Bank of Nigeria had, in accordance with Section 31 of the CBN Act 2007, approved the investment of the sum of N500 billion Debenture Stock issued by the Bank of Industry (BOI).

The sum of N200 billion was set aside for the refinancing/restructuring of SME/ Manufacturing portfolios while the sum of N300 billion will be applied to power and airline projects.

The carriers got the loan at7 percent interest rate for 10 to 15 year tenor. The 10 airlines that benefited from the funds include: Arik Airlines, Dana Airlines, Aero Helicopters, Kabo Air, Caverton Helicopter, Overland Airways, First Nation Airways, Chanchangi Airlines, Odenegene Air, and Air Nigeria.

Out of the 10 airlines that benefited from the fund, two of them: Air Nigeria and Chanchangi have become moribund. Air Nigeria collected the largest chunk of N35.5 billion.

Speaking on aviation infrastructure deficit, the Senior Advocate of Nigeria noted that government cannot develop aviation facilities because of lean resources that are competing with other developmental projects like education, electricity, hospitals and many other issues.

He stated he would back concession of most of the airports in the country only if it would be made transparent.

Speaking in the same vein, Chief Executive Officer of Bi-Courtney Aviation Services Limited, Capt. Jari Olubunmi Williams MMA2 has handled over 20 million passengers, 400,000 flights and created employment opportunities for over 100,000 people in the past 10 years.

His words, “Despite the opposition that has stifled the project, MMA2, is a product of courage and tenacity. This is significant because what started out in a modest way has become the benchmark for how airport terminals should be run.

 

“This is the first successful PPP in Nigeria. MMA2 has changed the face of the aviation industry, leading to airlines and passengers demanding for better services from government-run airports. The courage to maintain the facilities amidst stiff opposition is a lesson for private investors wishing to invest in the concession opportunities now available by government”, he added.

 

William stated that the Chairman of BASL has demonstrated his commitment to use private enterprise for the provision of public infrastructure while constantly fulfilling our obligations to stakeholders, despite the challenges in keeping to the concession agreement signed with government.

 

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