Govt should consider three-per cent loan interest rate for local airline operators: Okonkwo

Founder, United Nigeria Airline, Prof. Obiora Okonkwo, has commended the Federal Government for creating an enabling environment for domestic airline operators to thrive.
Mr Okonkwo said this in a statement on Saturday in Abuja in commemoration of the airline’s 4th anniversary.
He said that in most African countries, over 70 per cent of airline ownership and operation was by the government unlike Nigeria which has a free market place.
Commending President Bola Tinubu for prioritising the aviation sector, Mr Okonkwo said the one trillion dollars target economy for Nigeria’s aviation sector was realistic given the enabling environment.
He said, ‘The foreign exchange policy introduced since the inception of the President Tinubu-led administration has revolutionised airline operations in the aviation sector. There were challenges like access to foreign exchange and the trapped fund saga with foreign operators that gave Nigeria a negative image in the comity of nations. Some of these challenges faced by the sector were resolved by the president.’’
Mr Okonkwo said operators no longer go through the nightmare of accessing foreign exchange from the banks to offset bills and fulfill their obligations to their partners abroad.
He commended the minister of Aviation, Festus Keyamo, for putting in place measures aimed at protecting the interest of domestic airline operators.
Mr Okonkwo recalled that when the airline made its maiden flight on February 12, 2021, remained the most difficult time in aviation history due to the challenges posed by COVID-19 pandemic globally.
He called on the relevant authorities to consider a single-window source of loans for the country’s aviation industry in tandem with global best practices.
Mr Okonkwo also advocated a three-per cent loan interest rate for operators as against the thirty per cent being charged by financial institutions in the country.
He stated, “We have no doubt that if they continue in this direction, the aviation industry would achieve the $1 trillion economy that Mr. President is targeting. If you equate it to a country with about $17 trillion GDP. it might as well be about the 15th richest country in the world. This is huge. The Nigerian portion of the cake is still very small. It’s small because the local operators have not been fully supported. I still think that the government should consider a low interest regime for the aviation industry.’’
He said it was unfortunate that airline operators were competing with other entrepreneurs to access loans.
” If you have to go to the bank today, it should not be anything less than 30 per cent. The profit is very minimal,” he said.
(NAN)
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