Nigerian Airlines: Minister of Aviation, Sen. Hadi Sirika’s effort in ensuring the country’s registered airlines access single-digit loan is about to witness fruition as the operators are on the verge of getting a 5-year loan at  5 percent interest with no payment in the first year.

Sirika at several times had said the airlines will be supported because of the impact felt due to the Covid-19 pandemic.

One of the airlines’ chief executive who prefers anonymity because of the sensitivity of the process said Nigerian-registered carriers are on the verge of assessing a 5-year loan at 5 percent interest with the 1-year moratorium. “The airlines through their banks (commercial) are getting 5 percent interest loan with the first year as moratorium period,” said the airline CEO.

With a beam of green light on the Minister’s efforts concerning the support for the operators, the Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, and the Bankers’ Committee agreed to extend special facilities to the airlines.

While addressing the Bank Chief Executives at the bi-monthly virtual meeting of the Bankers’ Committee, Emefiele urged the banks to support airlines in the country, noting that such support was critical to helping the industry recover from the economic crisis triggered by the COVID-19 pandemic.

 Though the details of the support from the country’s apex bank were not spelled out, in terms of what the airlines are getting and when the disbursement will start through the carriers’ banks.

Another source said all the airlines involved have concluded their documentation on the impact of Covid-19 on their businesses as requested by the CBN.

Sirika at one of the briefings of the Presidential Task Force (PTF) on Covid-19 had hinted that the Federal Government through the Ministry of Finance and National Planning, have organized support for the airlines with the CBN which had been approved, adding that those interested in the plan would have to apply.

“There are two types of palliatives, there are the ones we are organizing through the CBN, it is not for airlines alone, it is going to be for the entire aviation industry including travel agents, ground handling, catering, car hire, etc. and of course, the agencies, the palliatives is total, the one we are organizing with CBN has been approved but they would apply for the loan and that loan would be at 5% from 2021.”

All the effort by the government through the Central Bank of Nigeria is what the International Air Transport Association, IATA had advocated in order to save the air transport industry from total collapse in as much as some airlines have disengaged employees due to inability to cope with the advent of financial stress triggered by the global pandemic.

SOURCE: AviationAges