The airline of Asset Management Corporation of Nigeria (AMCON), NG Eagle, has incurred a deficit of N22 billion in the last seven months following its inactivity in the last few months.

Driving the news 
NG Eagle, an asset from Arik Air, has lost an estimated N22.19 billion or $53 million since AMCON decided to float the airline in 2019. The deficit includes 2.4 million spent on maintenance of the aircraft, rent ($25,000), salaries of its staff ($1.66 million), insurance (N934 million), engine lease/shipment (N757 million) etc. 

What they are saying 
Stakeholders of the aviation sector are showing particular interest as to how the airline gulped $53 million or N22.06 billion of the nation’s resources. They have therefore called for a probe of both the business decision makers and Nigerian lawmakers’ meddling in the regulatory affairs of the aviation sector. 

Controversy 
AMCON, which owns both NG Eagle and Arik Air, started processing operation license for NG Eagle in 2019 to increase competitiveness in the aviation sector following the enormous debt (N10.8 billion) owed by Arik Air. Reports say that the airline passed all standard checks and was awaiting its operating license, which was halted by the Nigerian lawmakers. The National Assembly, after consideration of the matter, ordered the Nigerian Civil Aviation Authority, NCAA, not to grant NG Eagle the Air Operator Certificate (AOC) until it resolved the controversy surrounding the corporation.

Bottom line 
The inactivity of NG Eagle airline based on the delay in obtaining an operating license has had serious cost implications on the business. According to the lawmakers, unless AMCON shows commitment towards offsetting the debt acquired by Arik Air, NG Eagle wouldn’t obtain AOC. Inactivity means further loss for NG Eagle.

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