afam4eva:

I wonder why some of our politicians are not already in jail.

High_Chief:

This Tinubu is really heartless. Over $30b gotten from where? SMH

The above says it all

Come o. . . How much does an aircraft cost that a complete airline with several aircrafts (isn't it?) are sold for $30m?

Lagos Money.

$30M! And people will readily label the PDP as corrupt and useless? What was Tinubu's worth before he governed Lagos? Nsogbu di kwa!

You guys just come online and spout nonsense, without even trying to find out the truth. Firstnation Airways is fully owned by Kayode Odukoya!!! The guy has been struggling for the past couple of years to start the operations, right now, I am dead sure that he is still struggling to by fuel to maintain the operations and you just sit there and assume that the Airline belongs to Tinubu?!!!

Please get your facts right, Tinubu does not have a dime in Firstnation!!! This is an insult to some of us that had to work for close to 2 years with 25% salary in an average of three months, to get that operation started.

@Gbawe i always respect your opinion concerning corrupt government especially the ineffective and corrupt Jonathan,but am short of words when you argue ferociously in support of the rogue Tinubu,we all know he is great and unrepentant thief who has also infected Fashola.When we choose to condemn corruption please lets do it without prejudice,for me the only difference between Jona and Tinubu is that Tinubu is a noise maker but they are both unrepentant thieves who do not care about the entity called Nigeria and Nigerians,they both don't deserve and kind of support from Nigerians except of course from their family members and beneficiaries.

And to all justifying his stealing saying he is investing,please listen to yourselves.You all condemn IBB,yet you guys agree he is the major owner of glo,that is also employing thousands of Nigerians,should be we then ignore his stealing escapades? lets not be double standard, stealing is stealing,no matter what you do with the money,Anini stole and even helped the poor,that never justified his stealing.

rob peter pay paul!!

Lagos money in action

blackowl:

You guys just come online and spout nonsense, without even trying to find out the truth. Firstnation Airways is fully owned by Kayode Odukoya!!! The guy has been struggling for the past couple of years to start the operations, right now, I am dead sure that he is still struggling to by fuel to maintain the operations and you just sit there and assume that the Airline belongs to Tinubu?!!!

Please get your facts right, Tinubu does not have a dime in Firstnation!!! This is an insult to some of us that had to work for close to 2 years with 25% salary in an average of three months, to get that operation started.

Save your breath with your lies.
Eko Ile who is in Tinubu and Fashola's inner circles already confirmed that his boss's godfather bought the airline for $30m financed with a bank loan.

Eko Ile:

Dont blame the man because they dont know how to secure bank loans to start business in  your village.

Ignorant people.

Maxidoe:

@Gbawe i always respect your opinion concerning corrupt government especially the ineffective and corrupt Jonathan,but am short of words when you argue ferociously in support of the rogue Tinubu,we all know he is great and unrepentant thief who has also infected Fashola.When we choose to condemn corruption please lets do it without prejudice,for me the only difference between Jona and Tinubu is that Tinubu is a noise maker but they are both unrepentant thieves who do not care about the entity called Nigeria and Nigerians,they both don't deserve and kind of support from Nigerians except of course from their family members and beneficiaries.

And to all justifying his stealing saying he is investing,please listen to yourselves.You all condemn IBB,yet you guys agree he is the major owner of glo,that is also employing thousands of Nigerians,should be we then ignore his stealing escapades? lets not be double standard, stealing is stealing,no matter what you do with the money,Anini stole and even helped the poor,that never justified his stealing.

I am sure Gbawe et al will rise to the ocassion offered to defend these allegations.

dinah777:

Looting is looting,whether he lends back to you some of the money he stole from you or actually dashes you some,i cant believe our sentiments,how do we vote Leaders into power and instead of them serving the general public and steppin down respectfully in due course,They loot our money and throw it back into our face by flaunting their loots as if that is not enough insults,we are here justifyin their theft and tearng ourselves apart via arguments,A public servant in any capacity shldnt leave the office 1000times richer than he was at inception,This is totally wrong,Wake up Nigerians,Cut the sentiments and wake up,These leaders keep toying with our intelligence.Its my humble and analytical opinion.

This is exactly the point. A thief is a thief.

KINGwax:

sharap first! Think and type later! What about those who stole to invest outside thereby developing and feeding other nation's purse?

i think you should be the one to think first before you insult someone cos of his opinion.

By castigating him for his comments means that you support the fact that once someone gets into public office he should first loot the treasury and when he is done with his office and looting he then chooses one of the following;[list]

1. Decide to set up businesses in his country where he has looted.

2. Decide to set up businesses in other countries and

3. Decide to eat it alone.

As long as he is doing the first option according to you then the looting while he was in public office is justified.

Now, if this is the norm, and people like "you" support and justify it, then i never want people like "you" complaining about anything in this country.

This is because while the public office holder is in office he should be busy stealing money instead of making life easier for the citizens by using the supposed money he is given to better the life instead of stealing it and then coming to do "us' and 'himself' a whole world of good by setting up businesses with stolen money.

i am not a GEJ supporter, but am sure you are one of them castigating and attacking him for all that is his doing. He might be stealing his own money so that when he finishes his tenure he will then use that money to supposedly help the nation by providing emploment.

Stealing is stealing, whether you eventually come use the money for business in your country, outside your country or just for yourself.

We are in serious trouble in this country when people actually try to justify injustice. THIS IS NAIJA, am not surprised.

Maxidoe:

@Gbawe i always respect your opinion concerning corrupt government especially the ineffective and corrupt Jonathan,but am short of words when you argue ferociously in support of the rogue Tinubu,we all know he is great and unrepentant thief who has also infected Fashola.When we choose to condemn corruption please lets do it without prejudice,for me the only difference between Jona and Tinubu is that Tinubu is a noise maker but they are both unrepentant thieves who do not care about the entity called Nigeria and Nigerians,they both don't deserve and kind of support from Nigerians except of course from their family members and beneficiaries.

And to all justifying his stealing saying he is investing,please listen to yourselves.You all condemn IBB,yet you guys agree he is the major owner of glo,that is also employing thousands of Nigerians,should be we then ignore his stealing escapades? lets not be double standard, stealing is stealing,no matter what you do with the money,Anini stole and even helped the poor,that never justified his stealing.

My brother, how can what I wrote be construed  a "ferocious" support of Tinubu? The guy goofed with the claim of $30 billion. $30 million (the actual amount involved) is relatively easy to raise in regards to certain business models. This was what I was trying to show. Fola Adeola , the GT bank founder, and ACN member , could probably arrange $30 million for Tinubu single-handedly. Ajimobi, legitimately in the oil business for a long time, could petition his high networth 'pals' to drop that kind of dough also. Let us raise the bar as per what we allow to dumb us and our discussions sites down. Hate Tinubu but don't lie ($30 billion instead of $30 billion) or insinuate that $30 million cannot be raised legitimately and easily for use in a solid business.

ifyalways:

Proove Please.
Thank you sir.

See excerpts below:

http://thenationonlineng.net/web2/articles/47419/1/Are-airlines-going-bankrupt/Page1.html



The media has been awash with reports that some airlines in the country, notably Aero Contractors, Arik, Eagle Air (Virgin Nigeria), etc., are on the brink of bankruptcy, with many of them owing huge debts running into billions.

Aero Contractors, founded in 1959, is one of nation’s oldest commercial airline operators. Feelers in the industry say Aero has been at war with its banker, Oceanic Bank Plc, over alleged $200 million (N30.4 billion) indebtedness, a development that is making it difficult for the airline to finance its fleet of B737-500s.

In a statement signed by Mr. Frank Aiyede, General Secretary, Air Transport Services Senior Staff Association, (ATSSAN) on behalf of workers of Aero recently, he said since the face-off with the bank, the airline has had difficulty in paying its bill to technical partners, thus putting the company under serious stress.

Besides, he said the lingering crisis was bound to cost over 1,200 people their jobs, as the embattled airline may soon close shop.

Speaking further, he said: "We are being starved and deprived access to funds even when we make sales of millions of naira on daily basis. We believe that the management of Aero is not denying the loans but asking for a better repayment plan that will guarantee continuous existence of the airline and its profitability so as to ensure easy repayment of the loan liability", adding: "Ours will not be the first time the Federal Government will rise to the challenge of saving an airline. If it could be done for Virgin Nigeria, Aero will not be abandoned at a time like this."

Indication that the airline had fallen on evil days, became apparent with the sacking of over 50 of its key personnel earlier in the year, a move which insider sources attributed to sundry factors such as bad administration and poor financial management.

This is also at a time when the NICON Group under the leadership of Jimoh Ibrahim announced the takeover of Virgin Nigeria.

Olumide Ohunayo, head, research Zenith Travels, lamented the situation where Virgin Nigerian had found itself.

======================================================================================
http://nigerianpilot.com/?q=content/nigerian-aviation-industry-groaning-under-heavy-debt-burden

The last two years seems to present picture of good old days for Nigerian aviation industry following some progress made in the provision of infrastructure and relative safety flights in the country’s airspace.
Today the Nigerian aviation industry has attained the United States category 1 status which the country has strived to achieve over the years. Again some Nigerian airlines, such as Arik Air, now operate direct flight to the US, as a result of the country’s category 1 status. The Nigerian Civil Aviation Authority has achieved autonomy which enables them carryout their duties independent of undue interference from any quarter.

But that notwithstanding, the issue of huge debts owed by some of the operators in the industry, including local and international airlines and other services providers seems to be a major dent and snag to the growth of the industry in Nigeria . Already observation has shown that these huge debts have adversely affected the performance of the aviation agencies and that of the industry.

The agencies affected by these debts are the Federal Airports Authority of Nigeria, the Nigerian Airspace Management Agency and the Nigerian Civil Aviation Authority (NCAA). However, the hardest hit by these debts is FAAN. It was observed that about 79 domestic airlines and allied bodies owe FAAN a total of N3, 424,627,456 as at March 2011. International airlines and allied agencies also owe the Authority over N6 billion as at the same period.

It was observed that the debts to the agencies included the non-payment of rents by airlines, retail shop owners at various terminals, duty free shops, handling, oil and gas and other allied services rendered by the agency. It was reliably gathered that one of the leading airlines in the country owed the agency over N4bn for the services rendered to it at all the airports in the country including a leading foreign carriers operating into Nigeria.

It was also discovered that Virgin Atlantic owes FAAN N618.66m, while the Nigerian Aviation Handling Company (NAHCo) Plc owe the agency N239.612m.
Other debtors of FAAN include Oil and gas companies, N232.82m, banking and finance services, N44.8m, Duty Free Shops, N24.2m, Aero Airline, N241.8m, Nigerian Air Force, N17m, Associated Airlines, N41.8m, Chanchangi Airlines, N393.56m, IRS Airlines, N206.21m, Overland, N12.62m, Ethihad, N7.2m and Dana Air with N124.55m. Others are 86 dormant airlines with total debts of N440.326m to the agency while various government agencies totaling 31 owed N651.568m and dormant concessionaires N191.476m.

On its own part, NCAA is owed a total debt of N5.363bn by the various airlines and other operators in the sector. Out of the sum, an airline owed it N2.428bn, which it is finding difficult to pay for a few years now. Investigations revealed that most of the debts owed NCAA was from the five per cent Ticket Sales Tax already included in the air fares of passengers and five per cent of Cargo Sales Tax and are expected to be paid to the government’s coffers through the regulatory agency.

Arik, Aero top list with N5.1billion Arik Air has the largest debt to both parastatals being indebted to NAMA to the tune of N1, 107,674,989.30 for TNC and enroute charges while it owes the NCAA N2, 502,420.188.11 making a total of N3, 610, 095,177. 41(N3.6billion)
The NCAA also told reporters at a briefing that Arik Air had started deducting the 5 per cent for the NCAA as well as another 5 per cent for the Federal Inland Revenue Service (FIRS).

Aero Contractors is the second largest debtor with N 737,077,188.30 to NCAA and N731, 334,432.26 to NAMA bringing the airline’s combined debt toN1, 468, 411, 620.55 (N1.5 billion).
IRS Airlines owes the NCAA N672, 446,155.22 on PSC and CSC while it owes NAMA N343, 624,942.45 on en route charges and TNC bringing the airlines sum total to N1, 016, 071,097.67.
It was also observed that Dana Air owes a total of N643, 354,939.15 between NCAA and NAMA as N518, 046, 423.93 andN125, 208,515.22respectively.
=========================================================================================================

http://234next.com/csp/cms/sites/Next/News/Metro/Transportation/5560885-146/aero_may_halt_operations_due_to.csp

Aero Contractors, one of Nigeria’s oldest commercial airline involved in domestic and regional transport business, may suspend its flight operations following accumulated debts of about $200m.

The airline, which has been in regular negotiations with its banker (Oceanic Bank Plc) for about six months, disclosed that it has now reached a point where it is difficult for the carrier to operate on the terms of discussions with the financial institution.

“Though flight services might be affected if this continues, Aero is still flying and operations are still on,” said a reliable source at the carrier on Tuesday in Lagos.

Meanwhile, the airline in a statement “regrettably” disclosed that the unilateral decision taken by the bank on the morning of April 23, have effectively prevented the carrier from paying its suppliers and lessors, including Canadian Helicopter Company (CHC).

“The dilemma centres on the allocation of historical debt. The management teams at Oceanic Bank and Aero have been in constant dialogue about this matter for the previous six months. However, they have been unable to agree on a resolution that will allow Aero to continue trading as a going concern,” said the carrier in a statement.

^^^^Hope you've seen some proof.

ifyalways:

Proove Please.
Thank you sir.

@Gbawe,
You just disappointed me!! What do u mean by 'arrange' and are u saying that the only way Tinubu could raise such m?oney is through his political affliates or godsons? Must he amass wealth for 'legimate' purpose(s) illegitimately? Common, Tinubu is corrupt regardless of his several manoeuvres!

kunmibola:

@Gbawe,
You just disappointed me!! What do u mean by 'arrange' and are u saying that the only way Tinubu could raise such m?oney is through his political affliates or godsons? Must he amass wealth for 'legimate' purpose(s) illegitimately? Common, Tinubu is corrupt regardless of his several manoeuvres!

Am I here to impress you? What is difficult to understand with my use of "arrange"? Fola Adeola is the founder of GT bank and still very influential there . He can use his connection to "arrange" a legit loan for Tinubu same as Tony Elumelu, Dangote et al could do the same for GEJ. Ajimobi and other can do similar for Tinubu. The substantive point is that Tinubu is surrounded by extremely wealthy people who control legitimate fortunes worldwide.

Even if some would question the wealth of Tinubu, they should still understand that $30 million is not impossible to raise legitimately for buying an airline. When OBJ floated his 'library' how much did AGIPs fall over themselves to donate? Talk less of an airline that , if run well, will bring in good profit and ROI (return on investment).

Tinubu is a Fvcking thief  
but i think i like this because he just invested the money in our economy
no wahala
let ibb, abacha , buhari, obj (apart fron ota farm) invest theirs ,
and i tell and believe Nigeria gonna have the best economy in the world

Gbawe:


My brother, how can what I wrote be construed  a "ferocious" support of Tinubu? The guy goofed with the claim of $30 billion. $30 million (the actual amount involved) is relatively easy to raise in regards to certain business models. This was what I was trying to show. Fola Adeola , the GT bank founder, and ACN member , could probably arrange $30 million for Tinubu single-handedly. Ajimobi, legitimately in the oil business for a long time, could petition his high networth 'pals' to drop that kind of dough also. Let us raise the bar as per what we allow to dumb us and our discussions sites down. Hate Tinubu but don't lie ($30 billion instead of $30 billion) or insinuate that $30 million cannot be raised legitimately and easily for use in a solid business.

My bad on the highlighted and i apologize.I agree the inflation of the figure is actually ridiculous,i though he typed it in error.But maybe am wrong i have seen in various posts where you are in support of Tinubu or Fashola,was reason for my previous statement.The problem i have with Tinubu aside from his stealing,he seems domineering,which is the reason i can never support a Fashola presidency except of course he contests with the clueless and indecisive dude we have now.I feel Tinubu will always be Fashola's remote control.I voted for Ribadu during the April election because i believed he wont be controlled.Back to the topic,Tinubu does not need to borrow 30mill dollars,its chicken change to him,he is richer than both Ajimobi and Adeola.

ifyalways:

^Aero looks healthy,same with Dana.Btw,someone must do it (take that biz risk) or do you expect us to depend on foreign airlines for all our domestic and international flights?

Taking that business risk seems almost crazy to me. How many of those aviation companies are (or can) break even? There was a time the companies were even asking the government for a bail out package.

ifyalways:

^Aero looks healthy,same with Dana.Btw,someone must do it (take that biz risk) or do you expect us to depend on foreign airlines for all our domestic and international flights?

Check out the following editorial. Although written last year, the points are still relevant.

http://234next.com/csp/cms/sites/Next/Home/5596786-146/trouble_in_the_air__.csp

Days ago, the president of the Air Transport Services Senior Staff Association of Nigeria revealed an open secret: Nigeria has been unable to achieve Category One status, which is a higher level of air travel capacity that certifies our ability to fly directly from Nigeria to the United States of America, hence saving travellers the stress of flying from Nigeria to another country in order to get a flight to America.

According to the union leader, this is as a result of "the high level of deficiencies" in the country's aviation sector.

The Nigerian airline industry is severely strained. Operators and regulators continue to dance around this reality, but it is the fact. The woes of Virgin Nigeria-turned-Nigerian-Eagle-turned-Air-Nigeria still got wide attention, but they were only a tip of the iceberg. All our domestic airlines are labouring -from Aero Contractors, to Bellview to Chanchangi, they continue to complain about debts that choke operations.

For at least half a decade and three aviation ministers in between the industry has been awaiting a N10billion government bailout package.

On top of their indebtedness, and concerns about safety airlines with IATA certification operate under the constant fear of de-certification, and the uncertain business environment full of other players champing at the bit to take over the industry.

"They are positioning Arik as a national carrier but the truth of the matter is that Arik is not a national carrier," Benjamin Okewu, the union leader, said to the press for instance. "It is a flag carrier and there is no way you can attain Category one without having a national carrier and we have made it known to the government. This is actually painful no matter how they look at it." Arik Air indeed has severally been referred to as the nation's most successful domestic airline, but further inspection reveals a different story. A joint action of the NCAA and the Nigerian Airspace Management Agency (NAMA), in June 2010, temporarily halted the operations of Arik Air and IRS airlines over issues of non-remittance of charges.

The grounding of the two airlines by a task force came as a result of monies owed over a long period. According to this newspaper's source, Arik Air was said to be indebted by almost N1.8 billion on the domestic routes, and about $126,000 on the international route. Airlines are supposed to statutorily deduct five percent of ticket fees for remittance to agencies.

Apart from Arik, 17 other carriers were said to be owing up to N5 billion, being accumulated ticket sales charges collected from passengers but not remitted to the agencies Aero was said to owe almost a billion naira and Bellview, almost N300 million.

The bottom-line is that we are fiddling while Rome burns. Our government and corporate players are playing games with the aviation sector. Instead of taking the time to do things right we keep looking for shortcuts.

The problems are plenty. There are the longstanding allegations of corruption in the Federal Airports Authority of Nigeria, unlawful interference by the current minister of aviation on behalf of erring airlines, proper and thorough certification by the Nigerian Civil Aviation Authority amongst others. The lack of professionalism in our system showed itself in the fact that the NCAA obviously failed to carry out a thorough certification of airlines in the country before it invited officials from the International Civil Aviation Organisation (ICAO) and the United State Federal Aviation Authority (US FAA) to Nigeria last week to examine the issue of Category One Status.

Then there are smaller issues. Why has the airport authority refused to install airfield lighting at the 18L (18left) runway of MMA for over three years? Why is its payroll bloated with consultants? Why are airlines still unable to break even, barely struggling to survive despite persistent increase in charges?

Some solutions have been proffered.

The ‘Presidential sub-committee on solutions to challenges facing the airline industry in Nigeria' examined 10 critical areas of the sector - high operating cost, aviation fuel, infrastructure at the airports and air space, multiple tariffs and charges, training and Central Bank of Nigeria Forex policy - and warned of consequences should the government ignore its report.

The report included advice that the government should provide "scheduled domestic airlines special airline financing assistance in form of long term soft loans from under the Nigeria Airline Industry Review Action-Fund recommended to be established by the Federal Government with Nigerian banks." The imperative of this is clear. A viable airline industry will boost economic activities in Nigeria but when the ‘Giant of Africa' is unable to provide effective and safe airline services, and continues to have severe structural challenge within its financial service industry this is not likely to happen.

Let's stop deceiving ourselves. The nation cannot afford another series of air crashes. 2005 was only five years ago.

actually flew it and liked it. not bad.

Evil_Brain:
Why don't you ask yourself how a major leader of the opposition and "proven theif" can still be walking around freely buying airlines and being a thorn in the ruling party's side? Maybe its because there's no serious evidence against him. Or maybe there's evidence but our chief security officer is too busy being rètarded to do anything about it.

Or perhaps GEJ doesn't want to set the precedent of sending a fellow ex-governor to prison. Maybe he knows that his own immunity won't last forever and that his cup (as well those of 90% of his PDP friends) is full to overflowing.

Good points. We need to consider these.

Evil_Brain:
I'll be glad to see Tinubu go to prison for corruption as long as all the PDP ex-governors, ex-ministers, ex-presidents, Turai Yar'Adua and Dame Dr. Mrs. Jonathan go first.

Your point is: Mr Tinubu should go to jail but must be the last person to do so?

[b]Where did you get $30 billion from when the article states $30 million clearly? Is this how you inflate figures ridiculously just to malign others? My friend , if you are to be successful, first be comfortable with the success of others. What you are doing is no different to how other Africans with lower threshold of ambition and self-belief ungraciously call legitimately successful Nigerians "drug dealers" and "fraudsters" in the UK. They are losers only comfortable with themselves by thinking others have gained what they do not have through criminality.

Let me tell you now that investors abound in the world who can drop $30 million in an environment where profit making is stagnant. It could be a bank, individual, investment consortium, etc. $30 million is relatively easy to raise with a solid feasibility plan that indicates , beyond doubt, a business with potential to make profit and very low risk of failure. Abeg, save your criticism till you can at least provide objective argument.[/b]

GBAM, u have said it all,

infact i took loan 0f 2.5m fro diamond bank llast year february without colaterial simply because my salary account is domicilled in the bank. talkless of a formal Governor,and business man couple with a good business plan in a viable business , even last year Dangote took a loan of 500m USD. from 3 bank in nigeria , the loan was approve simple because the porpose of the loan is vaible and capable of performing during the duration of the loan.

so haters go and jump inside lagoon,

Maxidoe:

My bad on the highlighted and i apologize.I agree the inflation of the figure is actually ridiculous,i though he typed it in error.But maybe am wrong i have seen in various posts where you are in support of Tinubu or Fashola,was reason for my previous statement.The problem i have with Tinubu aside from his stealing,he seems domineering,which is the reason i can never support a Fashola presidency except of course he contests with the clueless and indecisive dude we have now.I feel Tinubu will always be Fashola's remote control.[b]I voted for Ribadu during the April election because i believed he wont be controlled.[/b]Back to the topic,Tinubu does not need to borrow 30mill dollars,its chicken change to him,he is richer than both Ajimobi and Adeola.

The point I am consistently trying to get across is that this is a high-profile business Tinubu has bought. To that end legitimate money could be raised easily to facilitate Tinubu's buyout of Bellview !!!! There is therefore no point speaking as if we know for sure that his acquisition of Bellview has any connection whatsoever with anything other than legitimate business activities that may simply involve going to the money market to raise capital.

First nation airline should do better than their previous owners

I can't believe someone is justifying the fact that looting the treasury is not wrong as long as the loot is used to create employment. And one wonders why Nigeria is the way it is. Let's change our mindsets pls.

all ex-governors should emulate Tinubu

Gbawe:


My brother, how can what I wrote be construed  a "ferocious" support of Tinubu? The guy goofed with the claim of $30 billion. $30 million (the actual amount involved) is relatively easy to raise in regards to certain business models. This was what I was trying to show. Fola Adeola , the GT bank founder, and ACN member , could probably arrange $30 million for Tinubu single-handedly. Ajimobi, legitimately in the oil business for a long time, could petition his high networth 'pals' to drop that kind of dough also. Let us raise the bar as per what we allow to dumb us and our discussions sites down. Hate Tinubu but don't lie ($30 billion instead of $30 billion) or insinuate that $30 million cannot be raised legitimately and easily for use in a solid business.

@ the bolded, irrespective of the person involved, the CBN single obligor limit for banks does not allows for any bank to give out such huge amount to any single entity, dont ever think that any bank can give out such huge amount to any single entity cause of default risk, not even any government which is not expected to default. thats y government and even companies like GTB issue bonds

AK 46 + 1:

@Eko Ile: you don't have to make it obvious that you are a beneficiary of the Lagos State government loot. It is wrong for one person to loot state funds and create a business empire and you justify such an act by saying "afterall he's generating employment". That's one of the major characteristics of loosers except you are the Special Assistant to the Governor on social networks who makes a living by replying critics. If you are get a better means of livelihood and if you are not stop looking for cheap government recognition as the thieves you are supporting don't visit nairaland, they are busy monitoring their loot somewhere.

Peace

You don't have to make it obvious that you are a nuisance with zero ability and fortitude to support your idiocy.


Next time, formulate a better argument regarding the subject matter instead of the usual moronic and meaningless rubbish

anonimi:

Save your breath with your lies.
Eko Ile who is in Tinubu and Fashola's inner circles already confirmed that his boss's godfather bought the airline for $30m financed with a bank loan.

This is what losers do and this is all they can do.

All I here is the same dumb rubbish, but none of you losers is competent enough to assist your rubbish with the smallest proof to back up your idiotic ramblings,


You clowns don't matter to me and I'll never take any of you seriously,

kunmibola:

@Gbawe,
You just disappointed me!! What do u mean by 'arrange' and are u saying that the only way Tinubu could raise such m?oney is through his political affliates or godsons? Must he amass wealth for 'legimate' purpose(s) illegitimately? Common, Tinubu is corrupt regardless of his several manoeuvres!

1. Even sef, is raising money for business through affiliates a crime in Nigeria or anywhere in the world?

2. You said Tinubu is corrupt, please list his acts of corruption and what he stole and from where


This is a great opportunity for you and the other folks making the same allegations without basis, please educate us

mustspin:

@ the bolded, irrespective of the person involved, the CBN single obligor limit for banks does not allows for any bank to give out such huge amount to any single entity, dont ever think that any bank can give out such huge amount to any single entity cause of default risk, not even any government which is not expected to default. thats y government and even companies like GTB issue bonds

I disagree with you. The single obligor limit is 20% of shareholders' funds unimpaired by losses.  At the current level of capitalization of many banks, that runs into several billions of naira.  And of course, $30m is less than N5billion. For a bank like First Bank, its single obligor limit is about N60billion naira.  However, the bank has internally reduced its single obligor limit to 10%.

Even for banks with low shareholders' funds, they can apply to the CBN for a waiver to exceed the limit.

For a practical example of this limit in practice, check https://www.nairaland.com/nigeria/topic-786362.0.html to see the takeover of loans amounting to about N275billion by AMCON.  One of the loans that was taken over was the sum of [b]N25billion [/b]owed Diamond Bank by Geometric Power Systems.

However, there are so many other risks that a lending institution should address before giving out an amount like $30m; one of them is business risk which I have been trying to bring up in an earlier part of this thread.

Besides, the default risk of a government is not zero; it is only low(er) because of its sovereignty.

Lastly, single obligor limit is not the reason why governments and banks like GTBank issue bonds.  Bonds have some advantages over loans: they are stable and the pricing is fixed as opposed to a loan which interest rate may go up.