Debts grounded Air Nigeria

Nigeria’s billionaire businessman, Barrister Jimoh Ibrahim, acquired Virgin Nigeria in April 2009 saddled with debts of $373 million to add to its N37 billion (about $250 million) purchase price. By the time it was grounded on September 4, the airline had debts in excess of N35 billion debts in unpaid taxes to the Federal Inland Revenue, four months arrears of staff salaries and pension remittances. Ibrahim sacked 800 staff without benefits and set up a 50-member committee and tasked it to work out a process of re-launch of the airline after 12 months. In suspending operations, he said, “Corporations are