According to a report, foreign airlines operating in Nigeria generated approximately $1.1 billion in revenue in 2022, despite facing foreign exchange challenges.
The Chairman of the Airlines and Passengers Joint Committee of the International Air Transport Association, Bankole Bernard, stated that the demand for travel within Nigeria is high, indicating that the revenue from foreign airlines is expected to continue thriving, Punch reported.
He expressed confidence that the figures would remain steady in the near future.
However, there have been issues with trapped funds for foreign airlines in Nigeria. The Senate passed a resolution calling on the Central Bank of Nigeria (CBN) to release $717,478,606 of airline funds that were stuck in the country.
The Senate also urged the CBN to allocate $25 million to airlines operating in Nigeria at its fortnightly dollar auction.
Bankole Bernard commented that the Senate may not be able to intervene effectively, as the CBN has shown disregard for the law by only complying with a court order to release old notes.
Regarding the possibility of airlines withdrawing their services due to trapped funds, Bernard stated that it is unlikely because they did not acquire the aircraft to keep them parked.
However, he acknowledged that foreign airlines still face challenges and may consider redirecting their aircraft to more lucrative markets if available.
The spokesperson for foreign airlines in Nigeria, Kingsley Nwokoma, emphasized that the repatriation of funds has been a longstanding issue for foreign airlines.
The inability to access the funds has impacted their operations, profitability, and willingness to continue operating in Nigeria.
Nwokoma warned that if the Nigerian government does not take immediate action to repatriate the funds, more airlines may leave the country.
He mentioned that several airlines have either ceased operations or reduced flight frequencies due to this issue.
Nwokoma expressed skepticism about the CBN’s immediate disbursement of the funds following the Senate’s order.
He believed that there needs to be a willingness from the government to ensure that the funds are repatriated according to the BASA (Bilateral Air Services Agreement) regulations.
He also suggested that if any disbursement had been initiated, the airlines would have made a public statement regarding it
