* Onyema
…Says 35% Interest In Nigeria Is Expensive For Businesses
…Appeals To FG For Window Of Accessing FX
The Chairman of Sir Peace Limited, Dr.Allen Onyema,said that a foreign leasing company defrauded his airline to the tune of $2 million .
This is just as he also asserted that funding in Nigeria has not only become more expensive but that the interest rate paid on money borrowed has also skyrocketed to 35 per cent interest and and not available
Onyema made this known at the 29th annual conference of the League of Airport and Aviation Correspondents (LAAC),with the theme; ‘Financing Aviation in Nigeria: Risks, Opportunities and Prospects.’ which was held yesterday in Lagos.
Speaking further at the well attended conference, the Air Peace boss said that he intentionally refused to pursue the case because as at that time Nigeria was blacklisted for breach of contract.
According to him, “A foreign company defrauded us of $2 million. They told us they wanted to buy aircraft parts and needed a sum of $2 million. If I had stopped them from taking the money, Nigeria would have been further blacklisted. What you would be hearing is that Nigerian airlines are unreliable.For the sake of the aviation industry, I decided not to stop this transaction. The company took our money and never came back. They stole our $2 million. The Nigerian government got in touch with them. They said it was a private business matter and they would see what they could do, and they ran away with that $2 million,”
Onyema also disclosed that as at that time Nigeria was blacklisted unofficially from gaining access to dry lease aircraft because some airlines whose names he did not mention were breaching the contract by not paying rentals to the foreign leasing companies when they want to repossess their airplanes.
Onyema said that instead of the affected airlines to pay, the proceeded to court to seek court protection to stop lessors from repossessing their aircraft .
Photo caption: From left: Mr. Chris Aligbe; Chief Consultant/CEO, Belujane Konzult, Chairman of Air Peace, Dr. Allen Onyema; COO of Murtala Muhammed Airport-Two (MMA-2), Mr. Remi Jibodu;Chairman, League of Airport and Aviation Correspondents (LAAC), Mr. Suleiman Idris; Director of Finance and Accounts, Federal airports Authority of Nigeria, FAAN, Mr. Ayodele Olatiregun; CEO of CITA Energies Limited, Dr. Thomas Ogungbangbe and former Managing Director, Federal Airports Authority of Nigeria (FAAN), Dr. Richard Aisuebeogun, during the 29th Annual League of Airport and Aviation Correspondents (LAAC) Conference Theme: Financing Aviation in Nigeria: Risk, Opportunities, and Prospects, at the Providence hotel, GRA, Ikeja, Lagos on Thursday
He posited that if he had pursued the case concerning Air Peace, Nigerian airlines will not be enjoying the dry leading contract they are enjoying today, adding that was the sacrifice the airline had to make for the good of other airlines in this country.
In his words, “If we had seized that money, we wouldn’t have been able to access dry-lease opportunities, because it would have further compounded the problems of the aviation industry.”
Commercial banks in the country, he said have introduced stringent rules which borrowers would meet for businesses to access the funds .
The stringent conditions, according to him was introduced due to the lack of integrity exhibited by some business people who borrow money and refused to pay back.
The Air Peace boss said that interest at 35 per cent is on the high side, appealing to banks to reduce it as it is affecting airlines and other businesses in the country .
Similarly , he also pleaded with the Federal Government to assist airlines in the country to create a window to access Foreign Exchange,(FX) through the Central Bank of Nigeria(CBN) or through the Bank of Industry(BoI)
About The Author
