The Federal Government of Nigeria is now supporting Nigeria Air project with fix budget of N47 billion. It’s now a part of newly passed 2019 budget. Although the airline project has 8 months old suspension, now the funding is quite big.
Muhammadu Buhari directs the Viability Gap Funding (VGF) for Nigeria Air project, according to Hadi Sirika, Minister of State for Aviation.
Sirika also said, “I assure the general public, and more importantly, the prospective partners and investors, that Nigeria Air project is fully alive and on course”.
It means that the project is on its runway to take off.
The VGF funding is N47.43 billion in Nigerian currency. It turns out to be $155m if you convert it in the dollar. Also, the exchange rate is now N306/$1 according to the Central Bank of Nigeria (CBN).
Generally, the Viability Gap Funding(VGF) will help us to check the real development time of Air Nigeria.
In, November stakeholders’ forum 2018, Sirika has explained that they will need N47 billion on funding. It was before the privet equity funds get introduced.
The Federal Executive Council (FEC) have suspended the project but now the FEC is refusing over modalities, according to Mr. James Odaudu, Deputy Director.
Transportation Minister, Mr. Rotimi Amaechi has revealed the cause. He said the cabinet members could not agree on a single agreement on Nigeria Air Project.
However, Mr. Rotimi also tels that, expected investors for the Nigeria Air Project will be, Islamic Development Bank (IsDB), African Development Bank (AfDB), Boeing, Airbus, and others.
All required structure is now in place to fund the project. As it gets more funds on the 2019 budget will get more progress day by day.
Most of the economic specialist are saying that Nigeria Air will help Nigeria to get sustainable development.