March 15, (THEWILL) – This is not the best of times for airlines, travel agents, passengers on international routes and other stakeholders, as the issue of trapped funds of foreign airlines operating in the country is yet to be addressed by the authorities concerned.
As of December 2022, the trapped funds belonging to foreign airlines grew to $550 million, despite the recent intervention of the Central Bank of Nigeria (CBN), to clear part of the funds.
According to reports, the trapped funds belonging to international carriers operating in Nigeria are estimated to be up to a whopping sum of $743,721,097 from $662m in January 2023.
However, many stakeholders feel that the issue of trapped funds rests with the Federal Ministry of Aviation, but this position was disputed on Tuesday, during a meeting with the Honourable Minister of Aviation, Sen. Hadi Sirika, held with the International Air Transport Association (IATA) and Foreign airlines operators, to discuss the salient issues affecting the organisations and the country
At the meeting, the Minister stated that the issue of blocked funds sits with the Central Bank of Nigeria and it is not what the ministry can handle alone, else it would have been resolved immediately.
He urged the International Airline Operators to be very considerate when dealing with the issue, bearing in mind the effects of COVID-19 and recession the country had experienced.
While stating Nigeria’s commitment to the Bilateral Air Service Agreement, he assured them that the aviation Ministry is concerned, and will do her very best to resolve the matter of blocked funds as soon as possible.
Speaking earlier, Dr Samson Fatokun, area Manager, West and Central Africa, who led the delegation, expressed gratitude to the honourable Minister for his continuous support for the growth of air transport in Nigeria and for the actualisation of his role as catalyst for the growth of the Nigerian economy.
He said the global airline community would like to appeal to the Honourable Minister for special intervention in resolving of airline blocked funds issues in Nigeria. He said the airlines are facing the collateral damage and the average Nigerian is bearing the brunt of this issue.
Susan Akporiaye, President, National Association of Nigerian Travel Agencies (NANTA), added that “it is a very difficult time for us, as some of us are already giving up on the industry and going into other businesses. It is our loss and also the loss of the country, as we don’t sell more ticket like we used to, and this will further increase the unemployment situation if this issue is not attended to.”
About the Author
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
