Emirates urges Nigeria to release blocked payments
Emirates airline is owed a “substantial” amount in ticket sales revenue by Nigerian authorities, with little progress in repatriating the blocked payments from Africa’s most populous nation.
The Dubai airline, which halted flights to Nigeria five months ago, declined to reveal the amount withheld.
But about half of the funds approved for clearing within its backlog are overdue and the process “remains beset with delays”, Emirates said on Friday.
“We have made many concerted efforts to enable a swift return to Nigeria. We had proposed a number of solutions to recover our funds, and engaged in dialogue with government stakeholders and industry bodies,” an Emirates spokeswoman said.
“Regretfully, and despite many media reports of public assurances made at the highest levels, solutions continue to be stalled.”
The comments come a day after Nigeria’s Aviation Minister Hadi Sirika said the Dubai airline had received most of its funds from Nigeria and about $35 million was still to be released, Reuters reported.
Nigeria is the leading market where foreign airlines’ revenues are stuck, with $743 million withheld, according to the International Air Transport Association.
Blocked remittances have plagued airlines for years, but the situation was made worse by the coronavirus pandemic, which left airlines struggling after three years of weak demand.
Nigeria’s airline repatriation issues began in March 2020, when demand for foreign currency outpaced supply and its banks were not able to service currency repatriations.
Preventing airlines from repatriating funds may appear to be an “easy way to shore up depleted treasuries”, but the local economy will eventually pay a high price in the form of reduced air connectivity, Iata said in December.
Emirates, which operated flights to Abuja and Lagos, first suspended the Abuja route. At the end of October, it halted flights to Lagos in response to the blocked funds.
“Unless there is a committed strategy by the local authorities to deliver concrete action, air services for travellers, for businesses seeking global market opportunities and for investments – all supported through air transport and critical to Nigeria’s economic recovery – will continue to dwindle,” Emirates said.
The airline said it is ready to work with Nigerian authorities towards a solution.
“We call on them to work with us, hand in hand, to ensure Nigerian travellers and businesses have unfettered connectivity and access to our global network,” it said.