$577m foreign airlines fund hangs in Nigeria –IATA

It has been revealed that the controversial trapped funds of foreign airlines with the Central Bank of Nigeria, CBN, have risen to $577 million as at March, 2016. This is as 22 countries out of 54 in the continent have signed the Solemn Declaration, which would enable intra-connectivity within the continent among its carriers. The Regional Manager, South West Africa, International Air Transport Association, IATA, Mr. Samson Fatokun, disclosed this yesterday in Abuja during a press briefing at the ongoing two-day Aviation Day organised by the association. The foreign airlines have been unable to repatriate the funds earned from the ticket sales in the country since October, 2015 and this had caused lots of crisis in the airline sub-sector as some of them had threatened to suspend operations into the country while others are thinking of downsizing their employees in the country.

However, a source close to one of the foreign carriers confided in our correspondent that most hit by the Federal Government policy are Emirates, British Airways, Delta Air Lines, Air France- KLM and Kenya Airways. Also, the source said the blocked fund was initially over $700 million, but that the Federal Government had in the past two months released some of the money to the affected airlines. Besides, Fatokun explained that IATA together with foreign airlines were engaging the Federal Government to ensure the release of the funds, stressing that about a month ago, it held a meeting with the Vice President, Professor Yemi Osibajo, and other government officials where they were assured that the funds would be released to them soon. Fatokun further informed that the $577 million trapped in Nigeria was the highest in the continent, but emphasized that Venezuela had the highest number of blocked funds in the world at $3.5 billion. He said: “The funds we are talking about does not belong to foreign airlines alone as it equally affects Nigerian carriers. As at today, Nigerian carriers are not able to assess dollars for procurement of spare parts and maintenance of their aircraft abroad among others.

“However, Nigeria remains the highest in the continent with blocked funds. But, the government has assured us that the controversy surrounding the funds would be resolved very soon and we are believing them for that.” Also speaking at the occasion, the Secretary-General of the African Civil Commission, AFCAC, Miss Iyabo Sosina, disclosed that 22 countries out of 54 in the continent had signed the solemn declaration, which would promote intra-connectivity within the continent. The Solemn Declaration is propelled by African Civil Aviation. Sosina said that African Union, AU, had set a deadline of December 2017 for the commencement of the policy in the continent. She explained that when the policy becomes operational, airlines from the continent would make more revenues while more passengers would be attracted to the continent for flight operations. She insisted that AFCAC would continue to promote single airspace for the continent in order to boost productivity and revenues. Besides, the Vice President, Africa for IATA, Mr. Raphael Kuuchi, said that opening up of the African continent for its carriers had significant benefits for the airlines, but noted that there are resistances from some carriers in Africa. “There are some resistances from some carriers, but the issue is that they are not policy makers. Governments are those to implement the policy. If the states are committed to opening up of the airspace, the airlines would not be able to kick against it.”

Credit: National Mirror