Hadi Sirika, minister of state for aviation, says the federal government is not paying $300 million for a five per cent stake in Nigeria Air.

In responses to questions raised about the national carrier which was launched on Wednesday, July 18, Sirika said the government is providing startup capital for the airline.

“The government is not funding the entire project. It’s just providing startup capital in the form of an upfront grant/viability gap funding. Once the strategic equity investor is in place, they will be expected to build on the initial investment made,” he said in the compilation by Everyday website.

“$8 million represents startup capital for offices etc required for takeoff. But $300 million is the entire airline cash flow funding requirements (aircraft, operations and working capital) for three years (2018, 2019 and 2020).

“This funding can be in the form of equity or debt. The financial model estimates cash flow requirements as follows 2018 ($55 million – $8 million is included here), 2019 ($100 million) and 2020 ($145 million).

“In order to ensure take-off of the airline in 2018, the government will provide $55 million upfront grant/viability gap funding to finance startup capital and pay commitment fees for aircraft to be leased for initial operations and deposit for new aircraft whose delivery will begin in 2021.”

The minister said the strategic investor will only become known after the public-private partnership procurement process is completed....


SHARES TO BE SOLD AFTER ONE YEAR OF OPERATIONS

Sirika said the company’s shares will be sold through an initial public offering after which the government will own five per cent equity.

“Government’s equity share held in trust for Nigerians will be devolved to Nigerians via an IPO.

“The government will retain only 5% equity, the list of shareholders then will be available to SEC and the Nigerian Stock Exchange.

“The rest of the 95% equity of Nigeria Air Limited will then be owned by the strategic equity investor and the general public.

“At that point, Nigeria Air Ltd becomes a public company subject to SEC, NSE and relevant CAMA rules for public companies.”

Speaking further, he said the airline will begin operations with dry leases and the domain, www.flynigeriaair.ng, will become active soon.

Someone has already registered nigeriaair.ng apparently in anticipation of a buy-out by the proposed airline.


https://www.thecable.ng/sirika-not-paying-300m-five-percent-stake-nigeria-air

Cool morning FTC
And why would u pay that amount?

dey better buy all doz domain all registered before dey start using it for scam..

Small Nigeria with Big God

APC....una father there.

Bleep

Propaganda and fake news everywhere....

Nice narration

Ok

The Nigerian Fraudulent Circle

Use tax payers money, build a government venture at a very crazy inflated price, steal a lot through the process. Get hands to manage it and send the returns to whoever is in government.

The venture fails as a result, privatize it at peanuts to yourselves again. Revive the business, then make fortunes out of it.

All at the expense of me and you.

You and I know this venture is dead on arrival.

nice

strategic investor.
it can only be Dangote or Jagaban...

Jahzrockballer:
FTC

Joker

hnm

Ok

Hmmmm.... We are patiently waiting.

bad market for that dude

but this nonsense domain doesn't look premium
Imagine a national carrier with a domain name like one scam landing page

Orisirisi!


meanwhile ....


Someone needs a good self-contained apartment in a serene environment within Agbara axis. It must have constant power supply, potable water and not too far from the main road.

Our politicians are stealing more than that amount every year. So kini big deal?

$8million or $55 million?

Dude can open a niche blog or affiliate booking site with his domains now.
Still a hot cake. Will rank higher than the main domain with proper SEO

Let the looting continue, APChit una well-done.

.

This is very mumbled, so the minister is saying buhari's government will fund and own this airline 100% for the first three years and after then shares will be sold and government will recoup their investment and only own 5%?
There is a lot of ambiguity in this statement and where there's ambiguity, there is fraud.