Aviation sector to get a boost from private investors

Some private equity investors are considering investing in the two distressed local airlines that have been taken over by the Asset Management Corporation of Nigeria (AMCON).

Nigeria’s Minister of Finance, Mrs. Kemi Adeosun, stated that the investors had on the sidelines of the IMF/World Bank spring meetings held discussions with some members of the government’s delegation to work out the viability of investing.

It can be recalled that AMCON took over both airlines following their huge indebtedness to the corporation and other creditors � local and foreign � as well as corporate governance failure.

But Adeosun explained: It was a preliminary discussion. They just expressed interest in buying the airlines and we told them that we would look into it.

Most of them are interested in investing in Nigeria and they just want to be sure that the timing is right. Some are looking at buying one of the airlines with AMCON and just waiting to be sure that our policies are right.

I think it is a welcome sign that investors are now looking to invest in Nigeria, which we are looking for. We have shown the world that we are serious and that we are fighting corruption. We have shown the world that we are trying to improve ease of doing business and the next phase is investment.

Investment does not come first, it is usually the last phase and I am very excited about it. So we have people that want to invest in power plants and the airlines.

She, however, declined to disclose the identities of the firms that were considering staking funds in the airlines, saying: They are private investors, so that could be foreign or local.

Source: Voice of Nigeria