Central Bank bars Arik and Aero from bank loans

Less than 24 hours after leaders of the different Labour Unions in the Aviation Ministry disrupted the operations of Arik Air leading to indefinite suspension of its services, the Central Bank of Nigeria (CBN) has barred the nation's top two airlines from receiving any additional loans over their massive outstanding debts to the federal government. Associated Press has reported.

Central Bank spokesman Ugo A. Okoroafor told The Associated Press on Friday the decision affected Arik Air Ltd. and Aero Contractors Co. of Nigeria Ltd.

The Central Bank says Arik Air, the nation's largest airline, owes more than $534 million. The Central Bank says Aero Contractors Co. of Nigeria Ltd., the airline of choice for many of the foreign oil companies working in Nigeria, owes more than $203 million.

Simon Tumba, a spokesman for Aero Contractors, declined to immediately comment Friday. Arik Air spokesman Adebanji Ola said the airline "was not in receipt of that particular" order by the Central Bank and declined to comment further.

Investigations by ionigeria.com reveals that the deliberate obstacles being put on the way of the Airlines are aimed at projecting them as ineffective and therefore would be used as arguments to support the determination of the Aviation ministries bigwigs to float another state controlled airline.

"since assuming office, the current Minister of Aviation, Stella Oduah has not hidden her desire to float a new airline. She has been finding it difficult to convince Nigerians and members of the National Assembly on the need to float another government airline after the dismal performance of Nigeria Airways. So, what is happening now are deliberate moves to actualize that goal", a source in the Aviation sector who do not want his name mentioned told ionigeria.com.

It would be recalled that few weeks ago Air Nigeria folded up citing unfavourable operating environment. With the suspension of domestic operations by Arik Air, the nation is now left with Dana, IRS and Aero on the domestic rout. IRS has two aircraft, Dana is just coming back from suspension after the June 6 plane crash and many Nigerians are still very skeptical of the airline.

As a result air travelers on the local routs should brace-up for serious inconveniences reminiscence of the situation in the 80s and 90s. This will provide the perfect ground for proponents of government controlled airline in the Aviation Ministry to push through their plan, our investigations revealed.