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Despite CBN $61m disbursement, foreign airlines threaten withdrawal of services

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Foreign airlines operating in Nigeria have expressed dissatisfaction with the initial $61 million payment made by the federal government to address the $800 million in revenue owed to international carriers stuck in the country.

The airlines described the amount as a little drop, stating that they might reconsider their ongoing flight operations in Nigeria due to the perceived lack of prioritisation by the government in resolving the issue of blocked funds.

The President of the Association of Foreign Airlines and Representatives in Nigeria (AFARN), Dr. Kingsley Nwokoma, conveyed these sentiments during a press conference at the Murtala Muhammed International Airport, Lagos.

AFARN emphasised that the $61 million recently released by the Central Bank of Nigeria (CBN) was insufficient. The association also raised concerns about the government’s failure to clarify whether there would be a structured payment plan to settle the trapped funds, providing the airlines with a timeline for the full release of their funds.

Nwokoma warned that unless the debt crisis was promptly resolved, some airlines might follow the lead of Etihad and Emirates Airlines in withdrawing their services from Nigeria.

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

…Foreign airlines may be forced to leave Nigeria

He linked the high airfares departing from Nigeria to the blocked funds, revealing that the nation was losing potential travelers to neighboring African countries with comparatively lower fares.

Nwokoma expressed regret that under the current circumstances, many foreign airlines operating in the country were diverting funds from their operations in other regions to sustain their activities in Nigeria.

He stated, “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.”

Recall that last week the CBN announced the disbursement of $61 million to foreign airlines as part of commitments towards clearing the backlog of trapped FX owed to international airline operators in Nigeria.

Recall that the total amount of trapped funds belonging to foreign airlines in Nigeria reached around $812 million, one of the world’s highest. However, the CBN has stated it meets this obligation with time.

Aviation

Association urges FG to settle defunct Nigeria Airways pilots

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The Air Transport Services Senior Staff Association of Nigeria (ATSSSAN) has re-echoed the call on the federal government to settle the outstanding severance benefits of erstwhile workers of the defunct Nigeria Airways.

The First Vice President of the association, Mr Emmanuel Jaja, said this in commemoration of the 2024 International Workers’ Day on Wednesday in Lagos.

He said that the workers put in the greater part of their life in the service of the airline, which was liquidated during the regime of former president OlusegunObasanjo.

Jaja regretted that over 100 former workers of the former national carrier had died since the last verification and part payment exercise carried out in 2019.

“Again, we wish to lament the death of five former Staff of the Nigerian Airways Staff who lost their lives in the last one week, including the pilot whose plane was hijacked in 1993, Captain MakpoOmodiagbe, without them receiving their full benefits from the federal government after the liquidation of the airline.

“The government must endeavour to pay the remaining living staff so that they can enjoy the labour of their lives before they are called home by their creator,” he said.

Jaja also decried the recent increase in electricity tariff in the country amidst the epileptic power supply, calling for a return to the status quo.

The ATSSSAN leader lamented the hardship in the country following the fuel supply challenges, stating that the labour body was studying the situation.

He also spoke on the issue of companies in the aviation industry that had refused to allow their staff to join trade unions.

Jaja said labour would soon make the industry uncomfortable for such companies and airlines.

“Government must also urgently address the issue of minimum wage for workers in order not to incur the wrath of the Nigerian workers,” he said.

Jaja said that ATSSSAN, in collaboration with the National Union of Air Transport Employees and other unions, would henceforth, not tolerate airlines and companies refusing to allow their workforce to be unionised.

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Aviation sector to benefit from RIDF

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Aviation is set to be part of key economic drivers that will benefit from President Bola Tinubu’s proposed Renewed Hope Infrastructure Development Fund (RIDF).

In a statement by Ajuri Ngelale, the fund targets strategic sectors like agriculture, transportation, ports,  energy, healthcare, and education along with aviation.

The initiative plans to inject funds into vital national projects to foster growth, bolster local value addition, generate jobs, and spur innovation.

Efficient use of low-interest loans and financing options will secure advantageous arrangements for project financing and operation.

The focus on aviation enhancement involves modernising major airports nationwide with targeted investments and infrastructure upgrades.

The statement reads, “On aviation enhancement, the focus is on the revitalization and modernization of major airports nationwide. Through targeted investments and infrastructure upgrades, major airports will undergo comprehensive refurbishment, including improvement in terminal facilities, runway expansions, and the implementation of cutting-edge technologies to enhance safety and operational efficiency.”

For agricultural infrastructure, the focus includes developing robust networks like storage facilities and irrigation systems.

In port revitalisation, the goal is to modernise facilities and attract investments to enhance Nigeria’s regional trade hub status.

“By modernizing port facilities and implementing advanced monitoring systems, the goal is to optimize efficiency, attract investments, and bolster Nigeria’s position as a regional trade hub,” the statement read.

Key road projects like Lagos-Calabar Coastal Road aim to enhance connectivity and stimulate economic growth.

Rail projects like Lagos-Kano and Eastern lines will modernise transportation networks for speed and reliability.

President Tinubu’s approval of the RHIDF absorbs the PIDF, expediting project delivery for Nigerians’ benefit.

Projects funded under the RHIDF will have a national spread, reflecting the commitment to equitable development.

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ICAO Aviation security audit team debriefs Nigeria, indicates strong outing

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The Team Lead of ICAO Security Audit Programme, Callum Vine, announced Nigeria’s strong performance during a debrief after its Audit.

Nigeria recently concluded the International Civil Aviation Organization (ICAO) Security Audit Programme the continuous Monitoring Approach (USAP-CMA) according to a statement emanating from Director, Public Affairs and Consumer Protection, FAAN, Obiageli Orah.

The USAP-CMA aims to improve aviation security compliance by analysing Member States’ performance and implementation of security standards. It focuses on Annex 17: Security Standards and Annex 9: facilitation compliance, along with associated procedures and security practices.

The event held at NCAA Headquarters saw Vine praise Nigeria’s robust policies and agencies, acknowledging their speed in addressing identified deficiencies without complaints.

He mentioned that the full audit report would be available within 60 days, followed by a 30-day period for comments.

FAAN’s Managing Director, Mrs. Olubunmi Kuku, affirmed using the audit results as a roadmap for continuous improvement.

She urged stakeholders to collaborate closely, share best practices, and uphold the highest security standards in the industry.

The debrief was attended by Dr. Emmanuel Meribole, representing the Minister, and Captain Chris Najomo, Acting Director General of NCAA.

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