Should Nigeria bail out any sector?
The Senate rejected the bailout for the Nigerian aviation, maintaining that the N5 billion ($13 million) bailout for airline operators is small. Honestly, I sympathize with President Buhari here: what can Nigeria do when the treasury is empty? He can send a $1 billion bailout bill but Nigeria cannot afford that. This aviation bailout is wholly associated with Covid-19 impacts.
The next coming months would be huge as I expect the insurance sector to come to Abuja with a request for bailout. All the things destroyed during our recent paralysis, if insured, would be compensated for. But these insurers are not well capitalized to handle them.
Lagos estimates that N1 trillion is needed to restore it. Rivers state has not even finished. Add Abuja, Aba, Kano, etc, and you see that insurers are in trouble.
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So, I have this question: should Nigeria bail out any sector?
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