The House of Representatives has kicked against the N4 billion bailout proposed by President Muhammadu Buhari led administration for the aviation industry following the damages done by COVID-19 to the sector.
The House Committee on Aviation on Monday said the sector needs around N50 billion to mitigate COVID-19 negative effect and described the N4 billion proposed as grossly inadequate.
Addressing journalists in Abuja, they said other nations have started providing bailouts to the aviation industry to cushion the effects of the pandemic and protect jobs.
The committee led by Nnolim Nnaji, explained that the just concluded public hearing on the amendment bills for the review of some aspects of the civil aviation Acts had brought to the fore ‘the impending crisis in the aviation industry which require urgent attention’.
Nnaji said, “As a parliament, we are going to look into these demands and, more especially, to find out why the Nigeria Customs Service would not respect the President’s Executive Order on duty exemption and other palliatives meant to lighten the burdens of the airlines.
“The multiple entries for foreign airlines is equally an important concern raised by the operators which must be looked into.
“The aviation sector requires huge capital for infrastructural development.
“The Federal Government’s N4bn bailout to the airlines and some palliatives to the agencies (not yet released) is too small. The airlines need at least N50bn bailout funds to cushion the coronavirus effect.
“We are requesting that other mechanisms should be introduced as a support to avert the collapse of the aviation sector.”