The Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, has instructed a team of five aviation experts and economists to review a proposal for establishing an aviation development bank.
The aim is to explore the possibility of establishing a structural financial system for the industry attracting low-interest funds from the global market.
The 5 man team include, Director, Planning, Research and Statistics, Ministry of Aviation, Mr Samuel Obafemi Bajomo, Special Adviser, Foreign Direct Investment And Capital Improvement Programme, Mr. Fortune Idu, Chairman, Airport Business Summit, Mr Yunusa Abudsalam and Prof Ken Ife, Chief Finance Banking Technical Consultant.
A member of the team, Mr. Fortune Idu in an interview with newsmen in Lagos said, the aim of the proposed development Aviation bank was to attract low-interest funds from the global fund market and accelerate all-inclusive development in the sector.
“The Minister in his directive was for us to look at how the aviation Industry can be funded, can have a sustainable funding system for the industry that understands and in consonance with the risk of Aviation itself”.
He stated that, the proposed bank, envisioned as a public-private partnership (PPP) initiative, would offer a structured investment and financing mechanism tailored to the unique risks associated with aviation.
Mr. Idu highlighted the limitations of existing banking systems in supporting aviation.
“Unfortunately, the commercial banks and other banks in the country, they don’t have mechanism for supporting aviation development mostly when it comes to aircraft procurement and infrastructure development. Most of the funds that are given are high interest funds and off course very low or short tenure funding and that is not palatable for Aviation development”.
Mr Idu said, after a meeting of the team, all expressed interest in exploring this option in collaboration with major financial stakeholders in the country, such as the Minister of Finance, the Central Bank of Nigeria, the Security and Exchanging Commission, and the relevant MDAs.
He observed that, this initiative could potentially be a game-changer for the survival and growth of the aviation industry.