TRAPPED $464M: Hope for Emirates, other airlines, as Nigerian govt intervenes

The Minister of Culture and Information, Lai Mohammed, said the Nigerian government is finding a solution to assist foreign airlines repatriate their funds within the Nigerian market after international airlines groaned over scarcity of forex.

Ripples Nigeria had reported that foreign airlines had $464 million in revenue trapped in Nigeria, with Emirates Airlines accounting for $86 million of the total fund. This had led to suggestions among international airlines to receive payment for flight tickets in dollars.

Also, Emirates Airlines had released a statement informing the Nigerian government and its customers that flights connecting Nigeria would be cancelled from September 1, due to its trapped funds, while also citing losses in the Nigerian market, amid accumulating operational expenses.

Mohammed said relevant authorities were now looking into the trapped funds crisis, according to multiple media reports quoting him on Wednesday, “On the trapped funds, I can tell you that the relevant authorities are working hard on that issue.”

Read also:Emirates suspends flights to Nigeria over trapped revenue

He said this during the tour of the newly commissioned terminal at the international wing of Lagos airport, five days after the International Air Transportation Association (IATA) criticised the Nigerian government for its handling of repatriation of funds of foreign airlines.

“IATA is disappointed that the amount of airline money blocked from repatriation by the Nigerian government grew to $464 million in July.” the association said, adding, “IATA’s many warnings that failure to restore timely repatriation will hurt Nigeria with reduced air connectivity are proving true with the withdrawal of Emirates from the market.

“Airlines can’t be expected to fly if they can’t realise revenue from ticket sales. Loss of connectivity harms the economy, hurts investor confidence, impacts jobs and people’s lives.” IATA had said.

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