Emirate Airlines Should Exercise Restraint, Trapped Funds Will be Paid; Says Aviation Minister

The Minister of Aviation, Senator Hadi Sirika has appealed to Emirate Airlines to exercise restraint while the government works to ensure its trapped funds are released as quickly as possible. 

Senator Hadi Sirika who appeared before the Senate Committee on Aviation noted that Nigeria’s aviation industry is one of the most profitable markets in the world.

It would be recalled that Emirate Airlines yet again disclosed it will suspend flight operations to Nigeria indefinitely over trapped funds to the tune of $85 million.

According to a statement released by the airline, the new threat to suspend operations was necessary to clear its pile of trapped funds in Nigeria.

Investors King had reported that several foreign airlines operating in Nigeria under the umbrella of the International Air Transport Association (IATA) have complained about the inability to repatriate their proceeds from the sale of tickets to their home countries. 

While explaining the reason for the circumstance, the Minister of Aviation noted that several factors which include recession and Covid 19 are what led to the scarcity of foreign exchange in Nigeria. 

He further pleaded for more time and understanding while the government work to resolve the issue. 

“We need their service, but they need our market more. We are assuring them that the money will be paid, but they should exercise restraint and treat Nigeria with value” the minister stated. 

Meanwhile, the speaker of the House of Representatives, Rt Femi Gbajabiamila has assured that foreign airlines operating in Nigeria would be able to repatriate half of their trapped fund by December 2022. 

The speaker who spoke during a meeting with the representatives of the foreign airlines, the aviation minister, and the central bank governor stated that the issue is a major concern to the house of representatives. 

While he urge for better understanding and patriotism, he noted that efforts are being made in conjunction with the apex bank to provide $350 million before the end of the year. 

Investors King learnt that the total sum of the trapped fund accrued from the sale of air tickets is more than $700 million.