The Managing Director/Chief Executive Officer, Asset Management Corporation of Nigeria (AMCON), Mr. Ahmed Kuru, has stated that the transport sector requires huge capital investment to make it work optimally for the good of the Nigerian people.
He said this while presenting a paper titled,” AMCON’s Intervention in Transport and Allied Sector: Achievements, Challenges and Prospects” at the 6th Nigeria Transport Awards and Lecture in Lagos at the weekend.
Kuru also stated that for the aviation and transport sector to thrive it would require a measure of policy consistency and governmental support.
He however added that AMCON’s experience has shown that no matter the capital invested in the sector, if corporate governance is not strengthened, it will still fail, calling on regulators in the industry to insist on corporate governance in Nigerian airlines
According to him, “The aviation and transport sector requires solid capital to make it deliver for the good of the Nigerian people. It will require a measure of policy consistency and governmental support to thrive. However, from our experience, no matter the capital thrown at the sector, if corporate governance is not strengthened, it will still fail. The absence of governance or quality governance and sound financial risk management systems is at the heart of the failures that are common in the sector. I urge regulators to act with courage by insisting on proper governance in airlines. I recommend they look at the work being done by CBN and Financial Reporting Council to improve the practice in airlines.”
He said that in 2017, in nominal terms, the transport sector contributed N1.787 trillion to Gross Domestic Product(GDP) accounting for 1.57 per cent of total GDP; while the aviation sector contributed N105.86 billion of this number representing 5.92 per cent of the sector.
Quoting the National Bureau of Statistics (NBS), Kuru said that the storage and transport sector controls 3.21 per cent of the labour force, adding that Nigeria can build on this.
AMCON , he said does not wish to be in the airline business or indeed any business apart from its legal mandate, adding that AMCON will leave these companies if the owners pay the debts owed.
“I will not end this paper without reiterating the fact that AMCON does not wish to be in the airline business or indeed any business apart from its legal mandate. So, AMCON will be willing to exit the firms if the owners of the companies pay the debts owed. Where this does not happen, the corporation will seek to strengthen the intervened companies and undertake a responsible exit in a manner that reinforces the sector,” he said