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Nigeria's aviation sector has reportedly suffered a major hit due to recent actions of Nigerian Governors.
Nigerian governors — known for their romance with luxury, typified by expensive local and foreign trips on private jets — may finally be cutting their coat according to their cloth.
Since the inauguration of the President Muhammadu Buhari administration in May 2015, the jet charter business has dipped to an all-time low in Nigeria, industry insiders have told TheCable. “Before and during the election in March, I would say the charter business hit its peak, but since Buhari was sworn in, there has been a marked low frequency,” the chief executive of one of the operators, who asked not to be named, said. The first factor held responsible for the change in travel habit is Buhari’s “body language” — a euphemism for the spartan lifestyle and the anti-corruption posture of the president who, many believe, will soon unleash the anti-graft agencies on public officers.
Maintaining a low-key lifestyle is a strategy to divert the searchlight elsewhere. “Clearly, since the governors reduced their patronage, our business has been seriously hit. That is the major cause of the lull. Without the governors, our business cannot boom,” he said, but did volunteer information on the value of business lost so far. A second factor, another industry operator told TheCable, is the huge debts states are owing. “I don’t know of any governor who would want to be caught flying in chartered jets by his banker.
Even if the banker does not say anything to his face, you will see the story in the media the following day of how the governor of a debtor state is still flying jets around,” he said. This is linked to another factor — the issue of unpaid salaries in many states, some running into eight months. The fear of incurring the wrath of unpaid workers has effectively blackmailed many governors into maintaining a low profile in their travels, although dwindling oil revenue and heavy election spending contributed largely to the debt overhang. The lack of business has also affected patronage at a dozen air strips in the country.
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SOURCE: THE CABLE
Nigerian governors — known for their romance with luxury, typified by expensive local and foreign trips on private jets — may finally be cutting their coat according to their cloth.
Since the inauguration of the President Muhammadu Buhari administration in May 2015, the jet charter business has dipped to an all-time low in Nigeria, industry insiders have told TheCable. “Before and during the election in March, I would say the charter business hit its peak, but since Buhari was sworn in, there has been a marked low frequency,” the chief executive of one of the operators, who asked not to be named, said. The first factor held responsible for the change in travel habit is Buhari’s “body language” — a euphemism for the spartan lifestyle and the anti-corruption posture of the president who, many believe, will soon unleash the anti-graft agencies on public officers.
Maintaining a low-key lifestyle is a strategy to divert the searchlight elsewhere. “Clearly, since the governors reduced their patronage, our business has been seriously hit. That is the major cause of the lull. Without the governors, our business cannot boom,” he said, but did volunteer information on the value of business lost so far. A second factor, another industry operator told TheCable, is the huge debts states are owing. “I don’t know of any governor who would want to be caught flying in chartered jets by his banker.
Even if the banker does not say anything to his face, you will see the story in the media the following day of how the governor of a debtor state is still flying jets around,” he said. This is linked to another factor — the issue of unpaid salaries in many states, some running into eight months. The fear of incurring the wrath of unpaid workers has effectively blackmailed many governors into maintaining a low profile in their travels, although dwindling oil revenue and heavy election spending contributed largely to the debt overhang. The lack of business has also affected patronage at a dozen air strips in the country.
Click here to read more
SOURCE: THE CABLE