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Over $700 Million Trapped as Foreign Airlines Accused FG of Blocking Repatriation

Foreign Airlines operators accused the Federal Government of blocking the repatriation of over $700 million from ticket sales

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Emirates Airlines

During a meeting with the Speaker of the House of Representatives, Hon. Femi Gbajabiamila, Foreign Airlines operators accused the Federal Government of blocking the repatriation of over $700 million from ticket sales.

In an interactive session on Monday, Samson Fatokun, who spoke on behalf of foreign airlines, stated that the government must obey the international laws and treaties governing the aviation sector. 

He noted that under the BASA principle, the Nigerian government has an obligation to support the airlines to repatriate their funds in the US dollar.

“As of today, after the CBN intervention of August 29, we have about $700 million in blocked funds. This is astronomically high and it is the highest in the world.

There is no country in the world that has that amount of blocked funds. Nigeria accounts for 32% of the trapped funds in the world.” he said.

Investors King recalled that Emirate Airlines had planned to stop operations in Nigeria over $85 million trapped funds until the intervention by the Central Bank of Nigeria.

Similarly, the International Air Transport Association (IATA), had criticised the Nigerian Government for its failure to allow international airlines to repatriate their profits, warning that it may cause the country more damage.

In a statement on its official Twitter handle, IATA said it was “disappointed” that the Nigerian government did not heed its warnings to allow the timely repatriation of the funds.

Meanwhile, local operators who were at the meeting, however, disagreed with their foreign counterparts. 

Speaking on behalf of the local operators, the CEO of Airpeace, Allen Onyema said local operators are more patriotic and can perform better if given the opportunity. 

He noted that some countries like the United Kingdom and the United Arab Emirates are not reciprocating the bilateral agreement in the aviation sector. 

Furthermore, the founder of United Nigeria Airlines, Obiora Okonkwo noted that foreign airlines should use the Importer and Exporter I&E window to source for dollars instead of waiting for the CBN to give them dollars.

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IATA Reveals 16.6% Rise in Global Flight Demand for January 2024

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The International Air Transport Association (IATA) has unveiled statistics indicating a surge in global flight demand for January 2024.

According to the latest report released by the IATA, passenger demand, measured in revenue passenger kilometers, rose by 16.6%.

This surge was particularly pronounced in international air travel with a 20.8% increase in demand. Simultaneously, capacity saw a 20.9% boost, resulting in a load factor of 79.7%.

Domestically, demand rose by 10.4% with a capacity increase of 4.6%, and a notable 4.2 percentage point surge in load factor, reaching 80.2%.

Willie Walsh, the Director General of IATA, expressed optimism about the industry’s resilience despite prevailing economic and geopolitical uncertainties.

He emphasized the crucial role of aviation as a catalyst for economic growth, urging governments to adopt policies that facilitate cost reduction, enhance efficiency, and advance towards the ambitious target of achieving net-zero CO2 emissions by 2050.

African airlines notably observed an 18.5% surge in traffic, albeit with a slight decline in load factor to 73.3%.

The report also highlighted China’s robust domestic demand driven by Lunar New Year travel, prompting carriers to increase capacity, particularly through wide-body jet deployment.

As the aviation industry charts a course into 2024, the robust start to the year signals resilience amidst challenges, with stakeholders eyeing sustainable growth and innovation to navigate the evolving landscape of global air travel.

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Nigeria Excluded as UAE Unveils 5-Year Multiple-Entry Tourist Visa

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The United Arab Emirates (UAE) has announced a five-year multiple-entry tourist visa to offer increased flexibility for travelers.

However, Nigeria finds itself excluded from this favorable arrangement due to the strained diplomatic relations between the two countries.

The new visa policy enables tourists from eligible nations to enter and exit the UAE multiple times over a five-year period, provided they spend at least 90 days in the country during each visit.

It aims to enhance tourism and facilitate business interactions, aligning with the UAE’s vision of becoming a global economic hub.

Nigeria’s exclusion from the five-year visa offering stems from a series of diplomatic disputes and travel restrictions between the two nations.

In 2022, the UAE abruptly halted the issuance of visas to Nigerian citizens, along with those from 19 other African countries, without providing detailed explanations.

This move disrupted travel and business ties between the nations, including the suspension of flights by Emirates Airline from Nigeria due to financial disputes.

While the UAE’s new visa scheme promises increased ease of travel and extended stays for tourists, Nigerians remain sidelined from these benefits.

The exclusion underscores the need for diplomatic efforts to mend relations and restore normalcy in bilateral affairs.

Nigerian officials have yet to issue a formal response to the UAE’s latest visa policy.

However, it highlights the challenges facing Nigerian travelers and the urgency for constructive dialogue to address underlying tensions and foster cooperation between the two nations.

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Nigeria Faces Passport Scarcity as Booklets Remain Stuck in Warehouses

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Nigeria is confronting a looming passport scarcity as thousands of passport booklets remain stranded in warehouses across the country due to a cash crunch and bureaucratic bottlenecks.

This revelation comes as service providers report outstanding debts running into billions of naira, further exacerbating the situation.

The Nigeria Immigration Service (NIS) has been grappling with challenges related to the remittance of its share of revenues from passport issuance, hindering the distribution of funds necessary to clear the backlog and release the passport booklets from storage.

The Treasury Single Account (TSA), a key component of the government’s financial management system, has been inactive, complicating matters further.

The scarcity of passport booklets threatens to derail the progress made by the Ministry of Interior in clearing over 200,000 passport backlogs, a feat achieved through reforms initiated by Dr. Olubunmi Tunji-Ojo, the Minister of Interior.

Despite these efforts, the current predicament risks leading to another accumulation of passport applications if not urgently addressed.

Officials of the NIS have emphasized that the Service should not bear the blame for the impending scarcity, highlighting the complexities of revenue distribution and bureaucratic procedures involved in passport issuance.

The NIS relies heavily on revenue from abroad, which accounts for 50% of the proceeds from passport issuance. Delays in accessing these funds have severely hampered the NIS’s ability to settle debts with service providers and release the passport booklets to the public.

As concerns mount over the potential passport shortage, applicants across the country are experiencing difficulties obtaining the necessary documentation, with complaints emerging from passport offices in various locations, including Lagos and Abuja.

Efforts to resolve the crisis are underway, but the lingering challenges underscore the need for swift and effective measures to ensure the timely availability of passport booklets and maintain the integrity of Nigeria’s passport issuance system.

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