Economy

House Directs FAAN to Recover N18.9 Billion from Foreign Airlines Within Two Weeks

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The House of Representatives Committee on Finance has directed the Federal Airports Authority of Nigeria to recover over N18.9 billion owed by foreign airlines operating in the country within two weeks. The directive was issued during a revenue monitoring session at the National Assembly, where FAAN officials appeared before the committee.

Chairman of the committee, James Abiodun Faleke, expressed concern over the growing debt profile of several international carriers, warning that continued accumulation of unpaid airport service charges could undermine government revenue.

FAAN Managing Director, Olubunmi Kuku, informed the committee that airlines are expected to settle service charges within two weeks. However, many operators have exceeded the payment window, with some debts extending beyond 30 days, 90 days, or even more than a year.

The breakdown of outstanding liabilities includes major carriers such as Qatar Airways (N1.5 billion), Lufthansa (N1.5 billion), Virgin Atlantic (N1.35 billion), KLM, EgyptAir, Ethiopian Airlines (over N1 billion each), and others including Air France, Royal Air Maroc, Turkish Airlines, and Africa World Airlines, whose debts range between N700 million and N1 billion. The total liabilities currently stand at N18.98 billion.

Lawmakers questioned why airlines are allowed to accumulate debts despite the two-week payment window, with some asking why defaulters are not sanctioned or grounded. Kuku explained that international airline payments are processed through the International Air Transport Association, which sometimes causes settlement delays. FAAN monitors debt ageing, engaging stricter enforcement once liabilities exceed 30 days and taking stronger action for debts above 90 days.

While FAAN has grounded some domestic airlines that default, enforcement against international carriers is more complex due to the global credit structures. Nonetheless, the committee emphasized the need for stronger measures and directed FAAN to provide full documentation and addresses of all debtors. Operators failing to clear debts within two weeks may be summoned to appear before the House.

Faleke stressed the importance of recovering all revenues owed to the government, stating, “We need every kobo that belongs to this country,” and warned that airlines violating financial obligations would be held accountable.

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