Why we are reviewing concession pacts – Stella Oduah-Ogiemwonyi

Aviation Minister, Mrs  Stella  Oduah-Ogiemwonyi,  has explained why her ministry is reviewing the concession and lease agreements with some firms.

She said at the weekend  that once ‘such agreements’ fail to meet the expected dividends, there is no reason they should be kept.

The minister, who spoke during an interactive session with the House of Representatives Committee on Aviation, said she “inherited horrible concession agreements” which no development-oriented administration can sustain.

She said: “More than 70 per cent of concessions and leases in the sector, are not performing and have not given us a premium on the terms of the contracts.”

On the concerns expressed by members of the committee and other Nigerians on the need to have a national carrier, the minister said she shares some aspirations, but noted that dream can only be actualised when a proper framework has been put in place.

“We must have a national carrier, but we need to have the appropriate framework to drive and actualise this dream. We cannot actualise this dream without the necessary framework,”she said.  The minster added that the issues of legal framework, ownership structure and funding are very critical and need to be sorted out before embarking on the project to revive the national carrier.

Mrs Ogiemwonyi  stressed that concession agreements are entered into by agencies of the government as a result of lack of capacity to deliver on their mandates, adding that such pacts are aimed at not only redressing this defici, but to enable the government to make returns on her investments.

On concessions in the aviation sector, Ogiemwonyi  said the agreements have failed to yield the expected dividends through enhancing the capacity of the sector, hence the government is left with no other option than to review them.

She, however, assured that the exercise would be carried   properly to ensure equity and justice to all parties.

“We will review and cancel those agreements and leases that are not yielding the expected dividends,”she declared.

On the security concerns at the nation’s airports, Ogiemwonyi  said her ministry was working with the National Security Adviser (NSA), and all the other security agencies to make the airports safe for users. She said the security and safety of persons passing through the airports remain a priority.

Earlier, in her opening remarks, chairperson of the  Committee, Hon. Nkeiruka C Onyejeocha, said the purpose of the parley was to rub minds with those who at the ministry on the best way to move the sector forward in line with Mr President’s Transformation Agenda.

Nation