Economy

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

Share
Share

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.

Share

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles
EconomyPolitics

Nigerian Analyst Challenges US Assessment of Federal Fiscal Transparency

A prominent Nigerian legal practitioner and public affairs analyst has mounted a...

EconomyEntertainmentMetro

Mr Eazi’s Choplife Sets Up Base in Itana Digital Special Economic Zone to Scale African Creative Business

Nigerian musician turned entrepreneur Oluwatosin Ajibade, widely known as Mr Eazi, is...

Economy

Senate Issues 48 Hour Ultimatum to Four Oil Companies Over NEITI Audit Queries

Four major oil companies operating in Nigeria now face a critical deadline...

Economy

Inflation Data and Consumer Spending Take Center Stage as Markets Eye Fed Policy Shift

While many traders escape to summer vacations, financial markets face a pivotal...

EconomyWorld

UK economy shows resilience with expected second quarter growth despite Iran war pressures

Britain's economy is on track to deliver another quarter of growth despite...

Economy

Oklahoma Tribal Finance Leaders Celebrate Decade of Growth with Black Tie Masquerade Gala

Oklahoma's tribal finance leaders will don masks and formal attire this October...

Economy

Consumer Spending Slowdown Threatens Job Market Growth as Inflation Bites

America's job creation engine is losing steam as inflation weary consumers increasingly...

EconomyMetro

Senate probe into oil sector audit hits roadblock as CBN, NDDC and NUPRC skip hearing

A high stakes Senate investigation into Nigeria's oil and gas sector transparency...