Nigeria threatens to shut down domestic airlines over debt, gives 30-day deadline
The Nigerian government has threatened to shut down national airlines due to multi-billion naira debt, authorities say.
The civil aviation regulator said the airlines owed the government 19 billion naira and $7.6 million, and refused to pay despite receiving money from customers. The Nigerian Civil Aviation Authority said the airlines instead launched a "campaign of slander and lies" against it.
“Airlines must reach a memorandum of understanding on how they will pay their debts within the next 30 days from August 30, 2022, or their license will be suspended when the deadline expires,” it said on Tuesday. NCAA chief executive Musa Nuhu in Abuja. during a meeting with representatives of local carriers.
He said, "This situation cripples the finances and pits the Authority against the federal government as a revenue-generating government agency, following the dire financial situation of the federal government."
Airline Operators of Nigeria (AON), an umbrella body for all airlines operating in Nigeria, had accused the NCAA of imposing multiple charges on its members.
The AON, in a letter to Finance Minister Zainab Ahmed, said the accusations, along with the scarcity of foreign currency and shortage of aviation fuel, are suffocating airlines.
Annoyed by the tone of the complaint, Mr Nuhu said the airlines' accusations were "unfair, unfounded and akin to blackmail".
He said that all airlines are beholden to the NCAA, the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Airspace Management Agency (NAMA).
Mr. Nuhu said the NCAA charges airlines a cost recovery fee because the bulk of its revenue comes from statutory fees on airline tickets. He said that even though customers pay the money, the airlines still fail to pay them.
Furthermore, he said AON's charges were false, as a comparison of charges between Nigeria and Ghana shows that Ghana charges more than 100% more for most charges.
"The NCAA will also be revising its fees upwards as the Authority has not reviewed fees for approximately 13 years despite the rising cost of providing services," Nuhu added.
> ALSO READ: CBN Releases $265M For Airlines Amid Flight Suspension ThreatsHe explained that aviation agencies face challenges just as much as airlines, as they also depend on forex to train and procure essential equipment the airline needs to operate safely.
He said NAMA also owed over N5 billion and FAAN also owed over N19 billion to the same airlines.
Skye Jet CEO Kashim Shettima said the NCAA was also not "perfect" and that the issues raised could be resolved amicably.
He suggested that the NCAA GM should have engaged the AON privately to resolve the issues, because if the AON also starts talking, it would be like "dirty laundry in public".
>“Yes, airlines owe money, but airlines are also deeply challenged because they cannot get fuel or freely access dollars. They buy dollars on the black market. unite to solve our problems,” he said.
Support the integrity and credibility journalism of PREMIUM TIMES Good journalism costs a lot of money. Yet only good journalism can guarantee the possibility of a good society, an accountable democracy and a transparent government. For free and continued access to the best investigative journalism in the country, we ask that you consider providing modest support to this noble endeavour. By contributing to PREMIUM TIMES, you help sustain relevant journalism and keep it free and accessible to everyone.Donate
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The Nigerian government has threatened to shut down national airlines due to multi-billion naira debt, authorities say.
The civil aviation regulator said the airlines owed the government 19 billion naira and $7.6 million, and refused to pay despite receiving money from customers. The Nigerian Civil Aviation Authority said the airlines instead launched a "campaign of slander and lies" against it.
“Airlines must reach a memorandum of understanding on how they will pay their debts within the next 30 days from August 30, 2022, or their license will be suspended when the deadline expires,” it said on Tuesday. NCAA chief executive Musa Nuhu in Abuja. during a meeting with representatives of local carriers.
He said, "This situation cripples the finances and pits the Authority against the federal government as a revenue-generating government agency, following the dire financial situation of the federal government."
Airline Operators of Nigeria (AON), an umbrella body for all airlines operating in Nigeria, had accused the NCAA of imposing multiple charges on its members.
The AON, in a letter to Finance Minister Zainab Ahmed, said the accusations, along with the scarcity of foreign currency and shortage of aviation fuel, are suffocating airlines.
Annoyed by the tone of the complaint, Mr Nuhu said the airlines' accusations were "unfair, unfounded and akin to blackmail".
He said that all airlines are beholden to the NCAA, the Federal Airports Authority of Nigeria (FAAN) and the Nigerian Airspace Management Agency (NAMA).
Mr. Nuhu said the NCAA charges airlines a cost recovery fee because the bulk of its revenue comes from statutory fees on airline tickets. He said that even though customers pay the money, the airlines still fail to pay them.
Furthermore, he said AON's charges were false, as a comparison of charges between Nigeria and Ghana shows that Ghana charges more than 100% more for most charges.
"The NCAA will also be revising its fees upwards as the Authority has not reviewed fees for approximately 13 years despite the rising cost of providing services," Nuhu added.
> ALSO READ: CBN Releases $265M For Airlines Amid Flight Suspension ThreatsHe explained that aviation agencies face challenges just as much as airlines, as they also depend on forex to train and procure essential equipment the airline needs to operate safely.
He said NAMA also owed over N5 billion and FAAN also owed over N19 billion to the same airlines.
Skye Jet CEO Kashim Shettima said the NCAA was also not "perfect" and that the issues raised could be resolved amicably.
He suggested that the NCAA GM should have engaged the AON privately to resolve the issues, because if the AON also starts talking, it would be like "dirty laundry in public".
>“Yes, airlines owe money, but airlines are also deeply challenged because they cannot get fuel or freely access dollars. They buy dollars on the black market. unite to solve our problems,” he said.
Support the integrity and credibility journalism of PREMIUM TIMES Good journalism costs a lot of money. Yet only good journalism can guarantee the possibility of a good society, an accountable democracy and a transparent government. For free and continued access to the best investigative journalism in the country, we ask that you consider providing modest support to this noble endeavour. By contributing to PREMIUM TIMES, you help sustain relevant journalism and keep it free and accessible to everyone.Donate
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