TheCable

As part of efforts to establish a new national carrier, the federal government will appoint a transaction adviser next week.

Hadira Sirika, minister of state for aviation, disclosed this to journalists after the federal executive council meeting on Wednesday.

He said the new national carrier  will be a public private partnership, expressing optimism that it would provide alternative for Nigerians.

“The most important incentive is that between now and Wednesday, we will appoint transaction adviser for the national carrier,” he said.

“Once that is in place, Nigerians will have options, there will be competition, good aircraft and this will bring the price down.”

He also said the government had been addressing some of the challenges being faced by some foreign carriers that were threatening to pull out of the country.

Sirika said government had been meeting 100 per cent of foreign exchange requirement of local airlines.

“You know that aviation is dollar denominated, you buy aircraft in dollar, you service in dollar, you train your crew in dollar, you do every thing in dollar. And we simply do not have the dollar to pay these airlines,” he said.

“But now as we are talking, government through the Central Bank of Nigeria has made available $300 million out of the $600 million of the airlines funds stock in Nigeria to pay the airlines to demonstrate its commitment to the sector.

“And with devaluation, $600 million could be $1 billion. Gradually, we will clear everything and once that happen they are not going to go anywhere.”

He added that the federal government had approved about N3 billion for the completion of the rehabilitation work on terminal building phase II and international wing of the Port Harcourt International Airport.