The Asset Management Corporation of Nigeria has called on the Federal Government to consider as a matter of top priority a bailout for the aviation industry.
A statement from AMCON on Thursday said the call was made by the organisation’s Executive Director, Operations, Mr Aminu Ismail, in Abuja.
The aviation portfolio of the government recovery agency falls under the supervision of Ismail’s directorate.
Ismail said AMCON’s intervention led to the purchase of about $1bn non-performing loans from Nigerian banks owed by major Nigerian airlines including Aero Contractors and Arik Air.
He explained that the intervention objective of the government was to stabilise the operations of the airlines rather than to realise the assets of the airlines in settlement of their outstanding debts.
According to him, additional loan is required for the purpose of providing support towards the growth of the airlines, fleet expansion, job retention and job creation.
He also highlighted the challenges faced by the aviation industry given AMCON’s experience since it intervened in the sector.
The Federal Government injected about N50bn to stabilise the operations of the between 2012 and 2020.