Why private investors may not invest in Nigeria Air — Gbulie

AS the Federal Government’s efforts of floating a new national airline, Nigeria Air, thickens, a public affairs analyst, Emeka Gbulie has identified reasons why it may be tough for the government to get foreign investors to put their money in the new carrier.

Gbulie while commending the government for wooing both the local and foreign investors to invest in the proposed national carrier considering the present economic situation in the country, however, tasked the government on the need to look inwards and do a lot of image laundering for the country’s aviation sector in view of its penchant for gross violation of the rules guiding agreements.

Citing how some controversial business agreements government through its agencies had with some foreign and private investors got messed up due to government’s failure to comply with the initial agreements, Gbulie called for an urgent move for government to revamp its image in the ongoing effort to lure investors to take part in the proposed new national carrier.

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His words: “I will give two clear reasons why the Federal Government’s desire to get investors might suffer some setbacks and the urgent need to nip these issues in the bud when they arise.

“The reason why Virgin Atlantic pulled out of Nigeria is still very fresh.  A government enters into a deal; another government comes and revokes it. The foreign partner or investor is disappointed, goes to his country and shares his experience with other investors and tomorrow you go back to beg for investors, and expect them to trust you?

The concession agreement between MMA2 and the Federal Government is also a clear case that will definitely make it a bit difficult for Senator HadiSirika’s team to woo investors. It is instructive to mention here that the Federal Airports Authority of Nigeria (FAAN) still collects 50 per cent of MMA2’s revenue till date, as the agreement that MMA2 has with the with Federal government prohibits FAAN from managing the General Aviation Terminal (GAT) and collecting the revenue that MMA2 would have used to replicate the same top-notch facilities it has at MMA2 at GAT.

“The illegality of FAAN running the General Aviation Terminal has still not been condemned by the Federal Government whose team is junketing around the world with tax payers’ money searching for investors while still frustrating and stifling investors back home. Now the point is, no shrewd investor whether ‘’home based’’ or foreign will ever trust the Nigerian Government on Nigeria Air with all of these unaddressed issues back home. The international community is watching how our ‘change’ Government handles issues of ‘’mutual consent’’ with distrust and volte face.”