Federal Government’s approved N5bn bailout for aviation sector following losses suffered as a result of the COVID-19 pandemic, was on Monday, rejected by the Senate.
The Chairman, Senate Committee on Aviation, Senator Smart Adeyemi, had at the opening of a three-day public hearing on the six executive bills meant to reorganise the civil aviation agencies in the country, made a case for bailout for the sector.
But the Minister of Aviation, Senator Hadi Sirika, disclosed that the Federal Government would soon start the disbursement of the N5bn bailout it approved for the operators of the sector.
The minister said the airline operators would get N4bn while other businesses in the aviation sector would be given N1bn.
He said, “The Federal Government has approved N4bn as bailout for the airlines and N1bn for other businesses within the civil aviation.
“We are already putting arrangements for the disbursement in place and once we start, it would be transparently done.”
However, the Senate Committee Chairman said the N4bn would not be enough to keep the airline operators in business.
Adeyemi said the N4bn approved for the airline operators was too small, going by what was happening globally in the aviation sector.
He said, “If we really want to keep the airline operators in business, and we don’t want them to close shops and go home, the Federal Government should shore up the amount.