Foreign airlines are threatening to trim or even terminate their operations to Nigeria over funds due to them which are being withheld by the Central Bank of Nigeria.
A total of $61.4 million was released to the airlines recently, but this is less than 10% of the total believed to be owed, as reflected in the latest data available.
This figure is put at $793 million as of December 2023.
According to data from the International Air Transport Association, Nigeria accounts for a substantial part of trapped funds globally.
Aviation analyst, Group Captain Jon Ojikutu, said aviation agencies would lose 80% of their revenues if foreign airlines left in protest.
The General Secretary of the Aviation Roundtable and Safety Initiative, Olumide Ohunayo, said it was not good that foreign airlines paid for services in Nigeria in dollars, yet could not get dollars to repatriate their funds.
If the foreign airlines left, as is being threatened, Nigeria’s aviation sector could not fill the breach, he warned.
Source: Daily Trust.
