· Foreign airlines operating in Nigeria are reportedly still struggling to access their $265million trapped funds released by the federal government. According to reports, the Federal Government has recently released only $265 million out of the $464million revenue earnings trapped in the country.
Foreign airlines operating in Nigeria are reportedly still struggling to access their $265million trapped funds released by the federal government. According to reports, the Federal Government has released recently only $265 million out of the $464million revenue earnings trapped in the country. This has raised concerns among the stakeholders in the sector as well as the travellers.
The president of, National Association of Nigerian Travel Agency (NANTA), Susan Akporiaye, revealed that the Central Bank of Nigeria (CBN) is yet to release 50 percent of the total funds released. This has left the carriers, she said, with a huge backlog making it extremely impossible for them to open the lower fare inventories. CBN has also not opened the window for foreign airlines to repatriate their released funds yet. Many Foreign Airlines are facing losses with funds trapped since 2014, unable to repatriate their sales proceeds for a business that’s already low margin. To top it, several times the exchange rate has skyrocketed, and the Naira devalued. It was also alleged that Nigeria violated the Bilateral Air Services Agreement (BASA) which allows foreign carriers to quickly repatriate their funds out of the country risking the blacklisting of Nigeria by IATA.
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