Business
Senate Warns Of Looming Danger In Aviation Sector ……Demands N50bn Bailout For Airlines
The Senate has urged the Federal Government to take steps to avert what it described as looming danger in the aviation sector as a result of scarcity of maintenance parts for commercial airlines in the country.
Chairman, Senate Committee on Aviation, Senator Smart Adeyemi gave the advice at a press conference in Abuja, on Monday.
Adeyemi said his position was premised on the information his Committee gathered from aviation stakeholders during its recently concluded public hearing on six aviation bills sponsored by the executive.
He lamented that the clearance of aircraft maintenance parts imported by airlines were being unduly delayed at the nation’s ports due to prohibitive import duties being demanded by the Nigeria Customs Service (NCS).
He warned the Federal Government not to wait for any emergency to occur in the aviation sector before prevailing on the NCS to allow airlines to clear their spare parts which are critical to smooth flying and safer skies in the country.
He said it would be disastrous for airline operators to be allowed to cut corners by attempting to manage their aircraft now lacking essential spare parts.
He also urged President Muhammadu Buhari to consider an upward review of the N4billion bailout already earmarked by the Federal Government for aviation sector to N50billion.
Adeyemi said: “I want to put it on record that there is danger in flying in Nigeria today. There are instances of some planes skidding off the runway. We must support the airline operators pending when we have our own national carrier.
“But if we want to continue with the operators like most nations are doing today, we cannot afford to leave them on their own, because they will want to be in business and struggle to make profit, and by extension, there will be cutting of corners.
“In most nations, there are special considerations for airline operators because they must not cut corners.
“If the part is needed in three weeks time and it is not available and the operators decide to be managing, well you know what will happen.
“Let me explain what they are doing in some African countries so that you can understand what we are saying, because when you are convinced with your facts we would say these are the facts that we have gathered. It is left for those who are in the industry to dispute our position but these are the information we have gathered.”
He said: “You would recall that the Federal Government, having considered the impact of the COVID-19 pandemic on the aviation industry, with a view to maintaining smooth operations, made the sum of N4 billion available as a bailout to these airline operators.
“With further and more critical intervention with airline operators in Nigeria, we gathered that approximately N50billion will be required to meet the requirements of airline operators.
“This increase in bailout fund is imperative if we are to keep our economy running, guarantee job security and mitigate retrenchment.
“A critical look at the aviation industry in Africa, Senegal for instance which is no comparison with the Nigerian aviation industry, in terms of number of airline operators etc, released $74 million as bailout funds for their airline operators. Rwanda also released $150 million for its airline operators.
“Taking the scope out of Africa, America for instance, released $58 billion as bailout funds for its airline operators. This is to mention a few.
“If comparative analysis is anything to go by, it is clear that the N4billion announced by the Federal Government as bailout funds for airline operators will not be sufficient to sustain three of the needs of the 15 scheduled flight operators, save the non-scheduled operators.
“Our further enquiry has also shown that airline operators are already discouraged and have resorted to cutting corners in carrying out maintenance requirements on their aircrafts.
“This is, of course, as a result of their poor financial situation. If this is not immediately checked, the effect is best not imagined. Something more definite has to be done to help the airlines respond to the impact of COVID-19 pandemic.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.