Trouble Ahead As Foreign Airlines Operating in Nigeria Threaten Strike, Give Reasons

• International airlines operating in Nigeria have sent a strong message to the federal government
• The airlines are not happy and have threatened to go on strike over trapped revenue in Nigeria for years
• Turkish Airlines, Emirate Airlines, and British Airways are some of the 22 international airlines in Nigeria

Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.

Foreign airlines in Nigeria have warned the federal government about plans to go on strike due to their inability to repatriate earnings.

The Association of Foreign Airlines and Representatives(AFARN) in Nigeria, the umbrella body for international carriers operating in the country, issued this warning in response to the recent release of $61 million by the Central Bank of Nigeria to the airlines

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The airlines described it as a small drop, considering they intend to repatriate $800 million in total funds.

They expressed unhappiness that their blocked funds are not seen as a priority by the government.

Kingsley Nwokoma, the President of AFARN, conveyed these sentiments during a press conference at the Murtala Muhammed International Airport, Lagos.

He said:

“It’s money from other countries that we’re using to run services in 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, then, 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.

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The government should please keep to that agreement. By then, we will be making progress,”

“If you’re not being paid, you can’t be in operations.

He also said the current high airfares paid by Nigerians leaving the country are due to the blocked funds.

Nwokoma expressed regret that Nigeria was losing potential travellers to neighbouring African countries with comparatively lower fares.

He added:

“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 of the airlines may go.”

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The decision came despite the corporation having spent about N1 billion building its export processing centre at the Murtala Muhammed Airport (MMA), Lagos, on the back of the recent economic crisis.

The last time the nation experienced a significant economic downturn since it last evaluated its rates through the Aviation Ground Handling Association of Nigeria (AGHAN) was less than two years ago.

Source: Legit.ng