‘How Jimoh Ibrahim crippled Air Nigeria despite N34.5bn intervention fund’

A former Director of Finance of the moribund Air Nigeria, Mr. John Nnorom, has told the Senate how businessman Jimoh Ibrahim crippled the airline.

Nnorom was speaking on Monday at the probe of the N120 billion aviation intervention fund extended to 10 airlines in the country by the Senate Committee on Aviation.

The committee had expressed displeasure over the mismanagement of the fund by the CBN, wondering why the sector was still in crisis despite the huge intervention fund extended to it.

Speaking on why Air Nigeria went  under despite receiving N34. 5 billion from the intervention fund, Nnorom said diversion of the fund to other ventures led to the collapse of the airline.

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Nnorom said: “The N34.5 billion drawn from the fund by the airline was diverted to other personal business by the owner of the Airline, Jimoh Ibrahim.

“The very moment the N34.5 billion intervention fund was paid into the Airline’s account with United Bank for Africa, UBA, it disappeared into one of the private accounts of the owner without any amount from the fund injected into the airline, paving the way for its eventual collapse.”

The aviation intervention fund came from the N500 billion intervention fund by the Federal Government in 2011. Aside from aviation, the fund was also meant for the power sector and small and medium scale enterprises, SMEs.

However, the Minister of Transportation, Rotimi Ameachi, while speaking at the probe, said his ministry and agencies under it were not aware of the fund.

Shocked by the revelation, the committee demanded an explanation from the CBN Governor, Mr. Godwin Emefiele, who was represented by a Director, Mudashiru Olaitan.

According to Olaitan, out of the N120 billion intervention fund injected into the sector, only N39.5 billion had been recovered while the balance of N81.2 billion was still outstanding.

He also admitted that some of the 10 Airlines that benefitted from the fund were now moribund, which, according to him, was against the objective of the fund.

He said AirNigeria and Chanchangi Airlines were already moribund, while Arik, Dana, Aero, Kabo, Overland, First Nation, Odenegene are the ones still in operation on the strength of the fund.

On why the two airlines folded up despite the intervention fund, Olaitan said the responsibility for monitoring the implementation of the fund was given to Bank of Industry, BoI, being the facilitator of the loans.

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