FG not withholding airlines’ funds – NCAA MD, Nuhu

Following allegations by foreign airlines, including indigenous carriers operating international flight operations over difficulty in repatriating funds withheld by the Nigeria Government, the Managing Director of the Nigerian Civil Aviation Authority (NCAA), Captain Musa Nuhu, has denied the claims.

According to the NCAA Managing Director, the federal Government is not withholding the airlines’ funds because the tickets are purchased in local currency.

Nuhu said this while fielding questions by journalists on the sidelines of the facility tour undertaken by the Minister of Information and Culture, Alhaji Lai Mohammed, to the newly-commissioned New Terminal of the Murtala Muhammed International Airport (MMIA), Ikeja, Lagos, Monday.

It would be recalled that, last Thursday, United Arab Emirates (UAE)-based carrier, Emirates Airways announced it will shut down flight operations into Nigeria from September 1, this year.

According to the airlines, the continued failure by the Nigerian government to repatriate its withheld foreign exchange is the cause of the planned shutdown of flights operations.

A statement confirming its decision to shut down flight operations into Nigeria issued, Thursday, also explained that the latest decision was taken by the carrier to ‘limit further losses and impact on our operational costs that continue to accumulate in the market.’

It is believed that the federal Government may be withholding over $80 million funds belonging to the Gulf nation’s carrier. This is even as it is believed that it is not only the Emirates that is at the receiving end of the forex (foreign exchange) crunch in Nigeria, but as many as 20 foreign airlines operating into the country.

The airline had on Monday cut its 11 weekly frequencies into Lagos Airport to just seven.

The planned suspension will affect all flights by the airline into the country.

”Emirates has tried every avenue to address our ongoing challenges in repatriating funds from Nigeria, and we have made considerable efforts to initiate dialogue with the relevant authorities for their urgent intervention to help find a viable solution.

”Regrettably, there has been no progress. Therefore, Emirates has taken the difficult decision to suspend all flights to and from Nigeria, effective September 1 2022, to limit further losses and impact on our operational costs that continue to accumulate in the market.

”We sincerely regret the inconvenience caused to our customers, however the circumstances are beyond our control at this stage. We will be working to help impacted customers make alternative travel arrangements wherever possible.

”Should there be any positive developments in the coming days regarding Emirates’ blocked funds in Nigeria, we will of course re-evaluate our decision. We remain keen to serve Nigeria, and our operations provide much needed connectivity for Nigerian travellers, providing access to trade and tourism opportunities to Dubai and to our broader network of over 130 destinations,” read the statement by the airline.

Corroborating, the Emirates’ claims, Chief Executive Officer, Aeroland Travels Limited, Mr. Segun Adewale, said international airlines operating into Nigeria have repeatedly complained about their inability to repatriate funds to their home countries.

Frozen funds belonging to the airlines have risen to about $600 million as the Central Bank of Nigeria (CBN) had not been able to make the dollar available for the carriers to repatriate.

According to Adewale, the CBN blocked revenue from ticket sales from 2021 to July 2022 from being repatriated to airline operators through the International Air Transport Association (IATA).

“The repatriation of revenues of all tickets sold to travellers by airline operators to their home offices is the responsibility of the CBN, but it has refused to release the equivalent in dollars for service already rendered.

We have lost so many airlines, and jobs are being lost in the aviation sector and at airports.

“The development is inimical to our economic well-being as a nation; from the spiritual angle of thought, it is wrong to muzzle the ox that treads the corn,” Adewale said, adding further that the blocked funds had already reduced air connectivity and restricted flights.

Only on Monday, August 22, Nigeria’s Air Peace announced suspension of flight operations to Johannesburg in South Africa from Monday, August 22, for reasons the carrier attributed to foreign exchange crunch, among others, which it said are further compounded by a drop in passenger volume.

“This development is regretted but has become inevitable due to the delayed issuance of South African visas to travellers, worsening forex crunch and the increasing cost of aviation fuel as well as its scarcity.

“However, having informed the South African High Commission in Lagos of the effects of the difficulty in getting SA visas by Nigerians, which consequence is the abysmally low passenger loads on our flights to and from Johannesburg, we believe that the situation will have improved within the next 60 days. Hence, our willingness to resume operations on the October 8, 2022,” a notice posted on its website read.

However, reacting to reports of failed repatriation of withheld funds, the NCAA MD, Captain Nuhu dismissed the claims, saying the airlines sell tickets in Naira, and not in foreign currencies.

“It is also not true, as airlines sell tickets in naira in reality,” Nuhu said.

On claims of an increase in landing and parking costs for airlines, Nuhu said: “It is false and misleading information, there is no additional cost like that.

“The last time we increase that was in 2012 and there is nothing like that. It is all a false and mischievous report. “

On aviation fuel scarcity, the NCAA chief said: “Aviation Jet- A1 fuel scarcity is globally occasioned by the Russian invasion of Ukraine. The Nigerian government was doing all it can to fix the crisis.”

Earlier, Managing Director Federal Airport Authority of Nigeria (FAAN), Captain Rabiu Yadudu said the authority had already agreed with additional 5 airlines to join Air Peace to access facilities at the new terminal, while also adding that the newly-commissioned terminal ‘will not replace the old MMIA terminal, but complement it.’

Remarking after the tour, the Information and Culture minister, stated that the new terminal has the capacity to process 14 million passengers per annum.

“It has 60 check-in counters, 5 baggage claim belts, 16 departure desks and 28 arrival desks.

“It also has 8 security screening points and 7 Passenger boarding bridges.

“There is a whole new experience in terms of aesthetics, comfort, free trolley services, hotel and premium lounges, friendly customer services and free wifi,” the minister said after the guided tour of the Terminal.