Nigeria Holds $783 Million in Blocked Funds, IATA Engages with Government for Resolution
The International Air Transport Association (IATA) reported that as of August Nigeria holds approximately $783 million in blocked funds belonging to various airlines.
This significant financial concern was communicated via an official statement released by the trade association.
Kamil Al Awadhi, IATA’s Regional Vice-President for Africa and the Middle East, has been actively engaged in discussions with the Federal Government in an effort to find a resolution to this pressing issue.
Foreign airlines operating within Nigeria have faced ongoing challenges in repatriating their commercial revenues due to a prolonged shortage of foreign exchange in the country.
The official statement from IATA stated, “Mr. Al Awadhi also held discussions with Nigeria’s newly appointed Minister of Aviation and Aerospace Development, the Honorable Minister Festus Keyamo. During these discussions, he urged the new government to maintain and strengthen consultations with the industry while developing both short-term and long-term solutions to address foreign exchange access issues for both domestic and foreign carriers.”
Highlighting the severity of the situation, the statement said, “As of August 2023, Nigeria accounts for $783 million of airlines’ blocked funds.”
According to the statement, IATA commends the Federal Airports Authority of Nigeria (FAAN) for its commitment to enhancing infrastructure and service standards at Lagos’s Murtala Muhammad International Airport within a twelve-month timeframe.
In related news, IATA had previously raised concerns about safety, security, and passenger service levels at Lagos Airport in the past year.
A recent high-level meeting between IATA and FAAN, represented by Managing Director/Chief Executive Officer Kabir Mohammed, concluded with FAAN committing to expedite improvements in these areas as part of a corrective action plan.
Kamil Al Awadhi, IATA’s Regional Vice-President for Africa and the Middle East, said, “We welcome FAAN’s commitment to upgrade Lagos Airport, which serves as a vital domestic and international hub connecting Nigeria to the rest of Africa and beyond. This strategic focus not only strengthens the aviation sector but also acts as a catalyst for Nigeria’s broader economic and social progress. IATA is ready to provide support and expertise to FAAN to ensure that international standards are met through the corrective action plan. Safety, security, and efficient infrastructure are crucial for a well-functioning air transport system, as is the ability of airlines to access the revenues they generate in Africa.”
Federal Government Reopens D Wing of Murtala Muhammed International Airport
In a bid to address the escalating flight disruptions and enhance the efficiency of air travel, the Federal Government has officially reopened the D Wing of the old international terminal at the Murtala Muhammed International Airport in Lagos.
The move is part of a broader effort to tackle the challenges faced by both travelers and airlines operating in Nigeria.
This challenge emerged following the sudden relocation of foreign airlines from the international terminal of the Lagos airport to an adjoining new terminal that opened in March.
The announcement of the reopening of the old international terminal, which had temporarily closed for renovation, was made by the Minister of Aviation, Mr. Festus Keyamo, on Monday.
According to a statement signed by the Director of Public Affairs & Consumer Protection at FAAN (Federal Airports Authority of Nigeria), Abdullahi Yakubu-Funtua, Minister Keyamo emphasized the government’s unwavering commitment to improving the aviation sector and ensuring passengers enjoy a seamless travel experience.
The statement reads in part, “We are pleased to inform the traveling public that Hon. Minister of Aviation, Mr. Festus Keyamo, has graciously permitted the use of the D Wing of the Old Murtala Muhammed International Terminal to complement the New International Terminal, aimed at facilitating the smooth movement of passengers through the airport.”
Minister Keyamo had originally ordered airlines to relocate to the new terminal starting on October 1, 2023. However, FAAN took the initiative to forcibly relocate the international carriers to the new facility on Wednesday.
The sudden relocation by FAAN coincided with a fire incident that occurred in part of the baggage hall of MMIA on the same day. This incident compelled the agency to evacuate passengers and personnel from the facility.
In response to the situation, Mr. Abdullahi Yakubu-Funtua, the Director of Media at FAAN, stated that the airport fire and other developments affecting power supply had necessitated the abrupt relocation of foreign carriers. He assured the public that FAAN is actively addressing the situation.
The utilization of the D Wing for passenger processing has already commenced, promising improved travel experiences for all passengers.
UAE Lifts Visa Ban on Nigerian Travelers After Nearly One Year
The United Arab Emirates (UAE) has officially lifted the visa ban that had been imposed on Nigerian travelers for nearly a year.
This momentous decision comes as a result of a historic agreement forged during a meeting between President Bola Tinubu and the President of the United Arab Emirates, Mohamed bin Zayed Al Nahyan, which took place on Monday.
The announcement was made through a statement released by the Special Adviser to the President on Media and Publicity, Ajuri Ngelale.
According to the statement, the historic agreement paves the way for both Etihad Airlines and Emirates Airlines to promptly resume their flight schedules to and from Nigeria. Notably, this restoration of flight activities does not entail any immediate financial obligation on the part of the Nigerian government.
President Bola Tinubu and President Mohamed bin Zayed Al Nahyan during their Monday meeting were pivotal in achieving this positive outcome.
The statement highlights that as a result of President Tinubu’s commitment to economic development diplomacy and the proposals he presented to his counterpart, a comprehensive framework has been established.
This framework involves substantial investments, valued at several billions of U.S. dollars, flowing into the Nigerian economy across various sectors, including defense and agriculture. These investments will be facilitated by the investment arms of the Government of the United Arab Emirates.
Furthermore, President Tinubu successfully negotiated a joint foreign exchange liquidity program between the two governments, which is poised to be unveiled in greater detail in the upcoming weeks.
In his remarks, President Tinubu expressed his appreciation for the UAE President, Mohamed bin Zayed Al Nahyan, recognizing his unwavering friendship and determined efforts to collaboratively normalize and enhance the standard of relations between these two significant nations.
This positive development comes after the UAE’s decision, in October of last year, to impose a ban on the entry of nationals from approximately 20 African countries, including Nigeria, into its capital city, Dubai. The lifting of this ban marks a crucial milestone in restoring travel and diplomatic relations between the UAE and Nigeria.
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