President Bola Tinubu urged the Central Bank of Nigeria (CBN) on Wednesday to establish a framework for quarterly reconciliatory talks with foreign airlines in order to address the $600 million backlog of trapped cash.
Festus Keyamo, the Minister of Aviation and Aerospace Development, made the announcement at the ongoing African Aviation Summit in Abuja, Nigeria’s capital.
According to the Minister, the development was one of the reasons the President traveled to the United Arab Emirates (UAE).
He also presented three roadmap projects, including aerotropolis, Aircraft Leasing Company (ALC), and Maintenance Repair and Overhaul, MRO, facility, as well as five emphasis areas to help the country realize its objective of being an African aviation powerhouse.
Infrastructure upgrades, ALC, MRO facilities, and FX availability are among the important sectors mentioned.
“Recent global events have highlighted the immense contribution and importance of air transportation as a catalyst for economic development, vital engine of global socio-economic growth, one of the greatest contributors to modern society’s advancement, and a key instrument for achieving the United Nations Sustainable Development Goals, SDGs,” Keyamo said.
“These underscore why the world was greatly impacted when international aviation was disrupted by the pandemic and other global occurrences. It is the vision of this current administration to make Nigeria the aviation hub of Africa.
“Government welcomes major players in aircraft leasing and head lessors to invest in Nigeria airlines to provide state of the art aircraft.
“The government will ensure the enforcement of contract agreements and the rights of investors and indeed all parties are protected and Nigeria being a signatory to the Cape Town Convention will uphold international obligations.
“This administration is committed to ensuring that forex is readily available to entrepreneurs, thus the president has directed that the CBN holds quarterly reconciliation meetings, with a view to resolving this issue.
“CBN is open to providing tax holidays to encourage existing and new entrants into the Nigerian aviation sector. I wish to reiterate that my administration, will continue to sustain the support being given to the industry. MRO facility critical to govt vision on aviation’
“MRO facility is another critical aspect that can make the Nigerian aviation industry a hub on the continent. With the shortage of qualified engineers, the current administration is willing to provide all the necessary support for the establishment of world-class MROs and training organizations.
“On upgrading infrastructure, this includes upgrading of the Cat3 landing system, at major airports, construction of the second runway in Abuja, airport improvement programs through concession, and government willingness to partner with companies to turn major airports into Aerotropolis.
“On tax holidays, the current administration is open to providing tax holidays to encourage existing and new entrants into the Nigerian aviation sector.”
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