FIRSTBANK
DIRECTOR PROPOSES LEASE
FINANCE FOR AVIATION
INDUSTRY...
For the much envisaged development and airspace
safety in Nigeria to become a reality, aviation operators should
consider the lease finance initiative, the Executive Director,
Corporate Banking, First Bank of Nigeria Plc, Mrs. Bola Adesola, has
said.
While delivering a keynote
address at the Executive Business Forum on Leasing Initiative
organised by the Equipment Leasing Association of Nigeria (ELAN) in
Lagos, Mrs Adesola called for full involvement of Nigerian
financiers in facilitating the development of the sector.
According to her, leasing is the foremost instrument
for aircraft financing as investments in commercial aircraft are
attractive to lessors and aircraft manufacturers compared to other
investment options. She argued that air transport is a significant
industry that would continue to grow in the years to come, while
producing enviable returns for investors.
She
expressed hope that recapitalisation of banks in Nigeria would
strengthen the capacity of the Nigerian finance industry to
participate meaningfully in aviation financing, adding that
FirstBank had strengthened its Aviation Desk in line with its
resolve to support the growth and development of the aviation
industry in Nigeria.
Adesola, however, solicited government’s support for the development
of the aviation sector with appropriate policy instruments,
regulatory framework and creation of an enabling environment that
will encourage participation in leasing industry.
Amplifying
Adesola’s proposition on the occasion,
the Managing Director/Chief Executive Officer of EAS Airlines
Limited, Captain Idris Wada described leasing as a viable
alternative for the acquisition of modern aircraft and urged ELAN to
come up with innovative strategies to this challenge.
Wada said the nine month compliance period given to airlines by
government to recapitalise was too short to meet the regulatory
requirement as the capital market had been overstretched by the,
financial services sector as a result of consolidation. He added
that public policy instability and difficulties thrown up by the
operating environment had eroded investor confidence in the sector.
He,
therefore, urged the government to provide seed fund as an incentive
for airline operators as well as review some of the regulatory
guidelines, which had hindered the smooth operation of the airlines.
Earlier in his remarks, the Chairman of the occasion and Chairman,
NEPAD Business Group, Mr. Goodie Ibru, who was represented by Chief
Victor Oyolo,said the forum was timely in view of the strategic
importance of using aviation lease to support growth and development
of the Nigerian Aviation industry.
He
predicted that commercial aviation industry would continue to play
an important role in global economy and urged ELAN to proffer
solutions on how to meet the challenge of financing commercial
aircraft.
Other dignitaries present at the well attended forum include Mrs
Mosun Olusoga, who is the chairman of ELAN; and her deputy, Mr.
Collins Ikpe as well as stakeholders in the banking and leasing
industry.
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