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UNITS

The Internal Audit Unit;

This is an arm of the Office of the Auditor General of the Federation and serves as the in-house auditor. The Internal Audit Unit of the Ministry audits all the Financial Transactions of the Ministry and carries out a continuous examination of all account books with a view to ensuring compliance with Government Internal Audit control regulations. It is headed by a Resident Auditor.

The Press Unit:

This unit is an arm of the Federal Ministry of Information & National Orientation and ensures adequate Press Coverage for the Ministry’s activities. The Public Relations Unit of the Ministry is responsible for sensitizing the public on the activities of the Ministry. Other functions include:

• Press Coverage and Publicity of Courtesy visits to the Minister

• Press Coverage during signing of Bilateral Air Services Agreement

• Production of the Minister’s Portrait for the Ministry and Parastatals.

• Reviewing the dailies for the Minister

• Issuance of Press Releases

• Liaison with Media Executives.

This Unit is an arm of the Federal Ministry of Information and National Orientation. It is headed by a Chief Press Secretary.

The Legal Unit:

This unit is an arm of the Federal Ministry of Justice and represents the Justice Ministry in the Ministry of Aviation by offering Legal Counsel on virtually all its activities and engagements. The Legal Unit of the Ministry gives legal counsel to the other Departments and represents the Ministry in all legal matters. It is headed by a Legal Adviser. The Department is actively involved in the following:

REVIEW OF THE CIVIL AVIATION ACT, 1964 (These highlighted ones should be links to pages that have their content, if they are left on this page it will be very long)

The principal legislation in the aviation industry was promulgated in 1964. Since the promulgation of this legislation the aviation sector has undergone so many changes due largely to the on-going liberalization in the aviation sector. The existing legal framework laid down by the 1964 legislation is therefore in need of urgent review to bring into the ambit of the law the changes and new innovations.

The Legal Unit, in conjunction with the Legal Department of the Nigerian Civil Aviation Authority have been engaged in activities pertaining to the review of this law. Discussions and workshop have been held with stakeholders in the industry as well as other relevant bodies on the provisions of proposed new Civil Aviation Bill. A major Workshop was held in the course of the previous year which completely x-rayed the provisions of the draft Bill to ensure its general acceptability. Thereafter, a copy of the draft Bill was sent to the Legal Drafting Department of the Federal Ministry of Justice for further necessary action. In addition, the Federal Executive Council (FEC) has approved that the draft Bill be forwarded to the National Assembly for passage into an Act of the National Assembly. The Federal Ministry of Justice only recently forwarded this draft Bill to the National Assembly for action as approved by the FEC.

LIQUIDATION OF NIGERIA AIRWAYS LIMITED
As a result of the downturn in the fortunes of Nigeria Airways Limited (Nigeria’s former flag carrier) and the decision of the Federal Government of Nigeria to privatize NAL, there was from the inception of this administration a continuous tussle between the Ministry of Aviation and the Bureau of Public Enterprises on the right approach to be adopted in the privatization of NAL. Initially, the Federal Government approved that the Ministry of Aviation resuscitate the Airline. A number of measures were proposed and adopted which did not solve the problems of the ailing flag carrier. Eventually, it was decided that the airline should be liquidated. It was further decided that since liquidation is also a form of privatization as it entails the disposal of Federal Government assets, the BPE should take charge of the process. From this time onwards, all matters pertaining to the NAL (in liquidation) are being forwarded to the BPE for necessary action. The liquidation of NAL however brought into fore the most serious issue of the settlement of the entitlements of the workers and pensioners of the erstwhile nation carrier. The issue of the settlement of the pension and gratuities of NAL’s workers has been most controversial and problematic from the commencement of the liquidation process to date. Indeed, one school of thought favour the position that the responsibility of the settlement of NAL’s workers entitlement should be that of the Federal Government based on the interpretation in the Pensions Decree, 1979 which NAL’s workers as public officers categorized. The position is contrary to this (which the Ministry and the extension Government is adopting) is that being a corporate entity registered under the provisions of the Companies and Allied Matters Act, NAL’s indebtedness, including the settlement of staff salaries arrears, pensions and gratuities of workers, should be settled under the liquidation process of the erstwhile national carrier. The foregoing has thus constituted a major issue between the Ministry of Aviation, the Bureau of Public Enterprises as well as NAL’s Liquidator. Recently, the matter of settlement of NAL’s workers entitlements was presented to the National Assembly for intervention by the former staff and Unions of the erstwhile airline. The National Assembly recently directed that the issue be reviewed by a Committee to be chaired by the Honourable Minister of Aviation. Membership of the Committee include the Permanent Secretary, Ministry of Aviation, representative of the Office of the Head of Service of the Federation, a representative of the BPE, NAL’s Liquidator, and Counsel of the Unions of the former national carrier.

ESTABLISHMENT OF A PRIVATE SECTOR FLAG CARRIER
With the demise of NAL, the former, national carrier, the Federal Government charged the Ministry of Aviation with the task of setting up an entirely private sector funded airline while the BPE was to exclusively handle matters pertaining to the NAL’s liquidation. A Financial Adviser was engaged as a Consultant whom along with a Technical committee set up by the Ministry produced a comprehensive Blue Print for the establishment of this Airline which was approved by Government for implementation. The model evolved requires a partnership between a strong international airline of repute, as Technical Partner and Strategic Investor and the Nigerian Private Sector, which could be individuals or institutional investors.
The process of selection of the foreign Technical Partner and Strategic Investor (TP/SI) was first embarked upon. This involved a rigorous selection process handled by the Consultant, Messrs Financial Derivatives, which strictly adhered to the requirements of due process and transparency. Initially, South African Airlines (Proprietary) Limited (S.A.A.) emerged as TP/SI. The selection of SAA as TP/SI in the proposed new flag carrier was later set aside on account of reluctance of the South African Government to grant Nigeria reciprocal interest to buy shares in its own national airline in the future, when SAA would be put up for privatization. The breakdown of negotiations between Nigeria and SAA saw other foreign mega carriers showing interests in the arrangements at the end of which Virgin Atlantic Limited (VAL) and Virgin Nigeria Airways Limited (VAA) emerged as TP/SI in the proposed Nigerian private sector airline. Upon the endorsement of the choice of TP/SI by the Federal Government of Nigeria (FGN) a Memorandum of Mutual Undertaking (MMU) was executed between the TP/SI and the Honourable Minister of Aviation which provided a framework for the establishment and operation of the new Nigeria Flag Carrier. A Letter of Indemnity was also given to the selected TP/SI providing indemnity from any adverse claim arising from the operations of NAL. This was followed up by a selection process of the Nigerian Institutional Investors group (core investors) to take up the majority fifty-one per cent equity (51%) in Virgin Nigeria Airways Limited while forty-nine per cent equity (49%) has earlier been taken up by the TP/SI. It is pertinent to mention that the Nigerian Institutional Investor group are required to later dives fifty per cent of their equity holding to Nigerians at an Initial Public Offer (IPO) within a specified period of time of the commencement of operation. The present position of this matter is that Virgin Nigeria Airways undertook its maiden flight to London on 28th June, 2005. Other arrangements are on-going to make the flag carrier fully operational. Issues pertaining to the operation of Virgin Nigeria Airways on the ‘reserved route’ are presently under discussions. It is common knowledge also that the establishment of Virgin Nigeria Airways has met with strong criticisms largely from airline operators of Nigeria expectedly so, because of the need to protect their own interest. There have numerous petitions and appeals to the Federal Government on the establishment and operation of Virgin Nigeria in the Ministry of Aviation. These are currently being attended to by the Ministry. Government has however remained focused and undeterred in its endeavour to ensure that there is a world class airline for Nigeria. The issue of designation on the routes reserved for Virgin Nigeria is being handled by the Department of Air Transport Managements (DATM) in conjunction with the Ministry of Foreign Affairs;

RATIFICATION OF AIR LAW INSTRUMENTS
A number of Conventions and Protocols have been executed by Nigeria since 1960. A large proportion of these remarked ungratified until recently. Such ungratified Conventions and Protocols however will not have territorial effect until domesticated into the national laws in accordance with the provision of the Constitution of the Federal Republic of Nigeria. The Legal Unit in conjunction with the Legal Department of the NCAA has taken all necessary steps to ensure the ratification of all such International Treaties, Conventions and Protocols. Nigeria is at the moment current on the ratification of International Air Law Instruments. The outstanding action in this regard is the domestication of these Instruments. Such Treaties, Protocols and Conventions, etc. are to be domesticated under the proposed Civil Aviation Bill 2005 which has been presented to the National Assembly for appropriate action.