Operators of foreign airlines in the country have expressed their disappointment in the Nigerian government after receiving the sum of $61 million payment from the Central Bank of Nigeria, CBN. The airlines have threatened to boycott Nigeria if the Federal Government refuses to address the trap funds issue as soon as possible.
The airlines described the sum of $61M out of $800M as a big disappointment from the Federal Government of Nigeria.
They might reevaluate their business practices as a result of the government's alleged lack of urgency in resolving the blocked cash issue.
The president of the Association of Foreign Airlines and
Representatives in Nigeria (AFARN), Dr Kingsley Nwokoma, questioned the
government's lack of clarity on a structured payment strategy to resolve stuck
monies and condemned the Central Bank of Nigeria's recent $61 million release
as insufficient. He cautioned that until the financial situation is resolved,
some airlines would follow the path of Etihad and Emirates Airlines in removing
their services from Nigeria.
“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, 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,” he
stated.
Due to Nigeria's expensive airfares, which are associated
with blocked cash, prospective tourists are choosing to visit neighbouring African
nations where prices are lower. Nwokoma expresses sorrow that international
airlines are using money intended for other areas to support their operations
in Nigeria.
“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 airlines may go,” he stated.
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