Foreign carriers urge FG to settle outstanding trapped funds

Foreign airlines operating in Nigeria have commended the Federal Government for clearing the backlog of over $800 million owed them.

Specifically, the airlines called on the Nigerian government to consolidate efforts at ensuring whatever funds is still trapped in Nigerian commercial banks are paid.

To achieve this, the carriers said it is ready to interface the Central Bank of Nigeria (CBN), and the International Air Transport Association (IATA), and other relevant bodies for the verification of the outstanding funds left to be settled.

President of Association of of Foreign Airlines and Representatives in Nigeria (AFARN), Dr. Kingsley Nwokoma said with substantial part of the $800 million already cleared , the body is calling on the Central Bank of Nigeria (CBN) to speed up the remaining funds, including the huge sums trapped in indigenous commercial banks to encourage the carriers to do business in the country.

Nwokoma said the impact of the payment of the funds is currently being felt with the reduction in air fares on international routes.

He said as the government intensify efforts to resolve the matter, the carriers are encouraged to carrying out their business in the country with assurance that funds generated is remitted to the benefiting airline and their country.

Nwokoma said :” Though the Federal Government has paid substantial part of the over $800 million trapped funds, there is need to ensure that Foreign carriers, operating into the country are not short changed under any guise. “Therefore we commend the minister for hitting the ground running and also the Central Bank of Nigeria for having a listening ear given the austere time, the country is going through.”

He called on Nigerian carriers to step up their game by making foray into international flight operations, including Air Peace, which is commencing its Lagos / London route by March 30, 2024.

Nwokoma called on Nigerian carriers to negotiate partnership and collaboration with international carriers, which is strategic for seamless intercontinental connections through codeshare agreements.

He affirmed that getting into the clearing house of the global airlines trade association – International Air Transport Association (IATA), will create better avenue for enhanced capacity , connectivity and other benefits for the airlines.

Nwokoma said as much as more carriers need to make foray into international routes, Nigerian airlines must consolidate their capacity to enhance their market share and boost competition.

He said :” AFARN congratulates Air Peace Airlines on its recent audacious step for venturing into the Lagos- London route and wish more Nigerian carriers can explore same option for more international routes.

Nwokoma urged Air Peace to learn from the pitfalls of other carriers that have operated flights on the Lagos / London route to ensure sustainability of the flight operations.

“We want to state that collaboration and alliances are key in world aviation. No one airline can do it alone. We will continue to seek this collaboration amongst operators. “Similarly, AFARN also encourages the foreign airlines to start selling low inventory tickets to the flying public. This will not only boost the business in the industry but would increase the number of air passengers.”

He called on State Governments to step up their game in their investment in air transport infrastructure, saying it is one of the steps that will grow the contribution of the aviation cargo sub sector to the gross domestic product.

The AFARN president said more investment in air transport infrastructure will position the States to drive export of agricultural produce from their domains and create additional revenue.

He listed produce that could be export from such terminals to include : yams, flowers, pepper, tomatoes and others.

Nwokoma said :” Most of you for instance are aware of what is going on in the Cargo sector, whereby state owned cargo airports are springing up, with the overriding intent to stimulate the economy and to also ensure that Nigeria goods are sold to the outside world. I am also aware that lots and lots of standardization, modernization and procedures are being carried out to make operations simple and to also reduce bureaucratic procedures that makes imports clearing and export forwarding friendlier to ensure the acceptability of international values.”