The Federal Government’s decision to postpone the polls by six weeks has cost the nation a total of N400 billion ($2 billion) according to the Managing Director of Nigerian Aviation Handling Company (NAHCO aviance), Norbert Bielderman.
Bielderman while giving a keynote address at this year’s Nigeria Cargo summit in Lagos said election postponement has discouraged investors who have taken their investments to other countries.
He said “There have been travel bans from many European countries and this has negatively impacted the aviation sector. Nigeria’s foreign reserves are significantly depleted and our national account is in deficit. The crash in oil price and consequent impact on the nation’s revenue earnings, exchange rate move from N155/$ to N205/$ within a six-month period at the interbank and Central Bank of Nigeria’s final closure of the RDAS is a testament to the fact that all is not well with our economy.
“Implicitly, Naira has been devalued to between 30-40 per cent and this will necessary cause inflation if government does not put in place deliberate measures to mitigate against an upsurge in price across industry.
“We expect they would save rather than spend in months ahead due to rising cost of living, potential job losses, rising children school fees etc. Also, the travel warnings and/ or ban from European Union countries for their citizens coming into Nigeria has assured that many flights from Europe to Nigeria have been either flying half empty to near empty.
“We expect inflation to rise up to 10 per cent or more soon. Furthermore, the cost of fund has also significantly risen with bank interest rates now up to about 26 per cent. This will lead to massive job losses within the private sector and for them to survive this trying time. In Aviation, the domestic airlines would be worst hit because of current ticket prices are not in sync or responsive to current realities. This is due to unhealthy price wars and pursuit of market dominance at the domestic side of airline business.”