Foreign airlines operating in Nigeria have voiced dissatisfaction with the initial disbursement of $61 million by the federal government, aimed at addressing the outstanding $800 million owed to international carriers. The airlines criticized the amount as inadequate and raised concerns about the lack of clarity on a structured payment plan or a timeline for the full release of their funds.
Dr. Kingsley Nwokoma, President of the Association of Foreign Airlines and Representatives in Nigeria (AFARN), conveyed these concerns during a press conference at Murtala Muhammed International Airport, Lagos.
AFARN emphasized that the recent disbursement falls short, and the government’s failure to provide a clear plan may lead to a reconsideration of ongoing flight operations in Nigeria.
Nwokoma warned that unless the debt issue is promptly resolved, some airlines might follow Etihad and Emirates Airlines in withdrawing their services from Nigeria.
He stressed the importance of the government honoring agreements and suggested a quarterly payment plan to make progress in resolving the blocked funds.
The high airfares departing from Nigeria were linked to the blocked funds, leading to the country losing potential travelers to neighbouring African nations with more competitive fares. Nwokoma expressed regret that many foreign airlines were diverting funds from operations in other regions to sustain their activities in Nigeria under the current circumstances.
He stated, “The foreign airlines are not talking about it because they felt it is a little drop. If we 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 foreign airlines and agree on quarterly payments, keeping to the agreements made during BASA negotiations. Without progress, some airlines may consider withdrawal.”
