President, Sabre Network West Africa and Aviation Safety Round Table Initiative ( ART), Dr. Gabriel Gbenga Olowo has urged the Federal government to give aviation sector in the country robust palliative measures that would cushion the devastating effects of COVID-19 on the sector.
Olowo made the request during an interview with aviation journalists who asked him what the sector deserves as government begins partial lockdown on the economy.
According to him, “Aviation sector deserves robust palliative measures to cushion the devastating effects of Covid 19 consequent on flight restrictions and boarder closures”.
The President of Sabre Network West Africa, also added that he throws his weight behind suggestions made by American/ Nigeria Chamber of Commerce on how to address post COVID-19 economic stimulus in the country.
“I absolutely align with the 13 suggestions by American/ Nigeria Chamber of Commerce among which are listed below:
“A committee should be set up by Aviation Minister to review the practicality for Aviation sector.
“Nigerian businesses that are five year old and above should be allowed to draw up to a maximum of 20 percent of their three year-average yearly Turnovers as a loan at a 5 percent interest rate with a one-year moratorium within seven days after the lockdown is lifted; using their businesses as collateral. When China became serious about transformation, Chinese businesses get cheap loans (5 percent) within 72 hours of submitting their loan applications.
“2 50 percent salary-subvention for three months: April, May June 2020 from the government for all Nigerians working in corporate organizations.
” That the Central Bank of Nigeria (CBN) should mandate Commercial banks to extend the moratorium on the existing business loans that have fallen due, by adding one more year without penalties.
He added that the Federal government should raise $50 billion from what he call: Africa Diaspora Investment Fund (ADIF). He noted that since interest on savings on fixed deposit has evaporated in some developed economies, indeed, negative interest in some countries like Switzerland, an interest rate of 3 percent for the Diaspora investors will be sweet music to their ears. He affirmed that $50billion can be raised from 10 million Africans in the diaspora, investing an average of $5000. This, he insisted, is better than China or International Monetary Fund (IMF) money with their impossible conditionalities
He also reasoned that African Development Bank (AfDB) could be called upon to play the midwifery role.
He nevertheless, called for reduction in the salaries, allowances and perks of all politicians by 50 percent with effect from April, 2020, starting from Mr. President and his Vice.
On partial lifting of the lockdown, President, ART said, “is ABSOLUTELY necessary, to avert disproportional economic collapse and hardship on Nigerian citizens and premised on the fact that confirmed/discharged case Ratio of 6:1 indicates a high probability of every confirmed case standing a good chance of being discharged whereas confirmed/death ratio of 35:1 inducates low probability of a confirmed case dying”.
On measures or plans to revitalise the industry after COVID-19 crisis, he counseled that government’s efforts must be made to open the airspace and borders, all together at once to stimulate commerce and traffic flow. Even as he added “failure which connecting economies and early recovery by the airlines will be very difficult if not impossible.
Olowo however told Nigerians not to expect full scale airline operations to begin on Monday when partial lifting of restrictions would become effective, he therefore reason that as long as closure of borders, restrictions on inter State movement and intra and intercontinental movements remain prohibited.
“Full airlines operations on Monday is not feasible since interstate restrictions are still in force with borders and airspace still closed. Inter, intra and intercontinal movement is still prohibited,” he said.
