Stakeholders in the industry have come out to denounce the plan by the FG to spend $500million to buy 30 planes for the aviation sector

 

the recent announcement that the Federal Government will spend $500 million to buy about 30 planes for the aviation sector.

Stakeholders in the industry have come out to denounce the plan by the FG.

The Guardian reports that they criticized the new scheme, saying that the airlines were yet to account for the over N120 billion given to them about two years ago. Virtually all the airlines, including Aero, Arik, IRS, defunct Air Nigeria and others were beneficiaries.

President of Aviation Round Table Capt. Dele Ore said "this huge amount of money has been given to Nigeria on loan to enable the acquisition of aircraft through FAAN. If this whole scenario is true, it is definitely an abnormality and a very ridiculous usurpation of statutory functions.

A former Commandant, Murtala Muhammed Airport, Lagos, Group Capt. John Ojikutu, condemned the action of the government, describing it as a big misplacement of priority and that there were many areas government could channel its resources into, noting that intervention fund granted to airlines in the past had been misused and diverted by some of them.

The minister of aviation Stella Oduah while appearing before the House of Representatives said the facility is a concessional loan that will last for 25 years. It has a ten-year moratorium and will be given at 2.5 per cent interest rate.

The loan is also to be used for the upgrade of four international airports located in Lagos, Abuja, Kano and Port Harcourt.

According to Oxford Economics 2012, "from visiting family and friends to shipping high value products, 8.3 million passengers and 181,000 tonnes of freight travelled to, from and within Nigeria. Air passengers resident in Nigeria comprise approximately 4.2 million of the passenger total.
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What are your thoughts on the loan?

Given the background of mismanagement of the previous money given out, can airlines be trusted to even keep up the planes?

What issues and concerns do you have with this situation?