FG Seeks Funds for National Carrier

Stella Oduah, Aviation Minister

Indications emerged Tuesday that the federal government may have concluded plans to seek long-term funds through a public-private partnership arrangement for the establishment of the proposed national carrier.

This was the outcome of hours of meeting of the Economic Management Team, presided over by President Goodluck Jonathan.

According to Anambra State Governor, Peter Obi, the government is seeking long term funds for the reactivation and floating of a national airline through Public-Private Partnership (PPP).

Obi also intimated journalists that the meeting of the 24-member Economic Management Team (EMT) meeting focused on receiving reports on developments on the transportation system in the country which was presented by the Minister of Transport, Senator Idris Umaru, and how to improve on it to generate the expected impact on the economy.

He elaborated that the meeting also discussed issues of ports reforms, the roads, rails rehabilitation and aviation reforms, as well as the issue of common tariff within the West African sub-region.
"The issues we discussed are the problems we need to deal with and I think with the decisions we have reached, it will go a long way to improve our ports.

Because if our ports are working, if everybody knows, it will contribute a better GDP to the country," Obi, who is also the Deputy Chairman of the Nigerian Governors' Forum (NGF), said.

"Every port in the world contributes about three to five per cent of GDP of that country if it is efficient. And then the issue of rail was discussed. If you look at the transportation in this country, it is difficult that even moving cargoes and everything which impact heavily on our roads because the rail is not working.

"The minister of transport presented the issue of the roads, railways rehabilitation which they are doing in order to rehabilitate up to Kano, Lagos and everything and how to move the cargoes and all that, and how to bring about PPP in rail transportation which will go along way."

On the airlines which are not working, he said: "Surprisingly, they have been able to rehabilitate Lagos to Kano, you know it's a gradual process. You know these things collapsed completely. The same thing about the airlines. In terms of transportation, you need to bring a lot of supports.

"If you talk about the airline for example, it's a long term business, you need a long term funding. These are issues not just by the government, government can't fix airlines.

That one, I think has to do a lot with issue of getting long term money in the country."

He said efforts were being made to reform the nations ports, citing that the number of days for clearing goods had been reduced to 24 hours.

He said: "Well, we  didn't discuss that but I can tell you that it is improving by the day. Our ports use to be nine to five, now it is 24 hours, it has been improving. To clear goods before used to be about some what, now it has come down to about two weeks. So gradually, it's improving but you need to see, when compared with our neighbours and every thing."