Sirika laments non -release of N24bn bail-out fund by FG

The minister disclosed this when he appeared before the House of Representatives Committee on Aviation to defend his ministry’s 2021 budget.

He said that the aviation ministry has been struggling to pay salaries and embark on other critical infrastructural development which he said has been affected by the non- release of the bail-out funds.

“We are waiting believing that the money would be released soon; you know the aviation industry suffered most under the COVID-19 lockdown because flights both local and international had to be suspended to avoid the spread of the disease,” he said.

Sirika however, said that the N5billion bailout for airlines has been released explaining that N4billion was given to airline operators while N1billion was given to others in the aviation industry chain.

On how the money will be shared to airline operators, the minister said that an operator with 20 aircrafts employing 2, 000 people will definitely not receive the same amount with an operator who has one aircraft with less than 10 staff.

However, Chairman of the Committee, Rep. Nnodim Nnaji faulted the release of N2.1 billion to the Federal Ministry of Aviation for runway projects whose contract has not been awarded.

“Funds for projects should be released to contractors and not the ministry. I wonder why such money should be released when the minister does not even know the total contract sum for the project in question,” he stated.

Responding, the minister admitted that the project was still at the consultancy stage, stressing that the funds are safe and that the contract would be awarded before the end of December.

When asked the total contract sum, the minister replied “it is in the works,” explaining that if the contract is awarded in December, the contractor has 24 months to complete the project.

READ ALSO: What Hadi Sirika told Buhari on national carrier

On the ministry’s 2921 budget proposal, Sirika said N78.9 billion was proposed for capital projects, while N250 million and N397 million respectively were proposed for overhead cost and personnel cost.

He also stressed the need for a well structured and befitting national carrier which according to him will add value to the nation’s economy.

On why money is still being budgeted for the four airports billed for concession, the minister stated that critical facilities have to be provided at the airports so that government will have bargaining power during the concession negotiations.