Foreign airlines in Nigeria are unhappy with the $61 million payment made by the federal government to settle $800 million in revenue owed to international carriers.
The airlines are mulling reconsidering their Nigerian flight operations due to perceived government lack of prioritization in resolving blocked funds issue.
Dr. Kingsley Nwokoma, President of the Association of Foreign Airlines and Representatives in Nigeria (AFARN), expressed his views at a press conference at Murtala Muhammed International Airport, Lagos.
AFARN criticized the $61 million CBN released, stating it’s insufficient and frowned that the government lacks clarity on a structured payment plan for trapped funds.
Nwokoma warned that unless the debt crisis is resolved, some airlines may follow Etihad and Emirates Airlines in withdrawing services from Nigeria.
He stated: “The foreign airlines are not talking about it because they felt it is a little drop. It is not something to be too excited about. If we have had about $300 million or half of what the airlines are being owed, then, you can say there is hope.
“The government should sit with the foreign airlines just like how you sign your BASA agreements and agree on quarterly payment of these funds. The government should please keep to that agreement. By then, we will be making progress.”
The blocked funds were linked to Nigeria’s high airfares, indicating a loss of potential travellers to neighbouring African countries with lower fares.
Nwokoma expressed regret over foreign airlines diverting funds from other regions to sustain their activities in Nigeria due to current circumstances.
He stated: “We are not saying the government should pay all, but the government should have a plan to pay a chunk of the money every quarter. The fear is that if it continues like this, some of the airlines may go.”
Last week, the CBN announced a $61 million disbursement to foreign airlines to clear the backlog of trapped foreign exchange owed to international airline operators in Nigeria.