Amaechi opens up on controversial Nigeria Air
…Says cabinet’s division stalled process
Ukpono Ukpong, Abuja
Minister of Transportation, Rotimi Amaechi, has revealed why the long awaited National Carrier which was launched last year is yet to commence.
Speaking at a Valedictory Press briefing in Abuja, he said that the Federal Executive cabinet was yet to agree on the modality for establishing the national carrier.
He noted that while some of the ministers were of the opinion that the Federal Government should invest and then sell the equity later, others were of the opinion that investors should be given the franchise of Nigeria Air from inception.
Speaking further, Amaechi debunked the claim that the project has been abandoned as he expressed optimism that the plans to float the National Carrier is still alive.
“On national carrier, (the) cabinet is divided on the issue of modality. There are those who believe that the Federal Government should invest and then we can sell the equity later.
“There are also those who believe that no, and from day one, they say let us get investors in and give them the franchise of Nigeria Airways or Air Nigeria or whatever is called.
That is where we are and that is what held it down. But as for whether it is still in our plan, it is and has not been abandoned.”
Also, the former Rivers State Governor disclosed that those in the South-South and the South-East will soon be connected to the North Central by rail with the Federal Government’s introduction of Coastal rail which will link these regions with the Federal Rail line that leads to Abuja.
Speaking on plans to repay the loan received from China to fund the Abuja-Kaduna rail project, he expressed disappointment at the management of the Abuja-Kaduna rail line for their failure to obey his directive on how to secure funds that will help the Federal Government to repay the loan.
He revealed that China had insisted that Nigeria opens a sinking fund and an escrow account in order to be able to seamlessly repay the loans which Nigeria borrowed from the Asian country for the construction of rail projects, particularly the Abuja-Kaduna rail.
“Remember the last time; I directed that they should be saving whatever was the outcome of the management of Abuja-Kaduna rail.
“What I told them was, all the money you get from the Abuja-Kaduna train, put it in an account. Remove the cost of operation and whatever remains, let’s start paying back.
Put it in a either a sinking fund account or escrow account. I think escrow is the most appropriate so that on our own we can start paying back before the Federal Government starts paying.
Why I’m saying this is because when we got to China, they insisted because of what happened to Kenya, Somalia and Sudan for their inability to payback, that we must open two accounts, an escrow account and a sinking fund account”.
He explained that money dedicated yearly to service the loan was meant to be saved in the sinking fund account while monies in the escrow account will be for the maintenance of the corporation.
