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Louis Ibah
Former Governor of Abia State, Dr. Orji Uzor Kalu, says investors in Nigeria’s domestic airline industry require new set of fiscal incentives from the Federal Government to grow their capacities and also operate profitably.
Kalu, who is also the Chairman of Slok Group told aviation correspondents at the Murtala Muhammed International Airport Lagos, noted it was important that government supports the investors to grow given the harsh operating environment in which they are doing business, urging the Nigerian government to enact new laws that would ease the plight of investors in the country’s aviation sector.
“The industry is a very difficult one to operate in Nigeria; the pricing is not right, there is no incentives for anybody and that is why you don’t see Slok Air in the industry anymore,” said Kalu.
“I pity Air Peace, Dana, Med-View and other airlines doing business in the industry because of the challenges they are going through. The way forward is for government to support the aviation industry. The industry is not being supported. We need to enact new laws that will help the system to run better,” Kalu added.
He also faulted plans by the Federal Government to own five per cent in the proposed national carrier, Nigeria Air, suggesting instead that the government equity should be raised to 80 per cent while the public should own the balance 20 per cent.
“If the government is going to do 5 per cent, then there is no need having a national carrier,” Kalu said.
“But if the government is going to own 80 per cent and allow individuals to own 20 per cent and after five years, they will offload their holding on the floor of the stock exchange so that all Nigerians will own the 80 per cent. If government is going to do that, then I am in line with them, but if it is anything contrary to that, I won’t support it,” Kalu added.
The Senator -elect for Abia North said it was the same equity formula that he suggested in 1999 for the privatisation of the Nigerian refineries as he expressed optimism that offloading government’s equity after five years for Nigerian to take up would create wealth for citizens.
“I told former President Obasanjo to build refinery since 1999, which would be managed by Mobil or Total.
