Legislators appeal for understanding over $550m airlines’ funds in Nigeria
Nigerian law makers through Nnolim Nnaji, chairman of the House of Representatives Committee on Aviation, appealed recently to the International Air Transport Association (IATA) to prevail on its member airlines to show understanding as the various organs of government in Nigeria were making efforts to ensure that their tickets proceeds are duly remitted.
The appeal came as members were told that $550 million out of the $1.1 billion blocked in Africa and Middle East are held in Nigeria.
Nnaji made the appeal while playing host to Kamil Ala Wadhi, IATA regional vice president for Africa and Middle East, who paid him a courtesy call in his office.
L-R: Samson Fatokun, IATA country manager for West and Central Africa; Nnolim Nnaji, chairman, House Committee on Aviation; and Kamil Ala Wadhi, IATA vice president for Africa and Middle East
Nnaji reminded his guest that the prevailing situation was in consonance with the global economic meltdown, assuring him that the federal government, through the Central Bank of Nigeria (CBN), had put in place a mechanism for the liquidation of the blocked funds.
He also told the IATA vice president that the federal government has made tremendous investments in the aviation sector to improve security and safety of air transportation in the country.
The House Committee chairman, also praised the association for its contributions to the safety of air travel through its operational safety programmes, (IOSA) which a number of Nigerian airlines have benefited from.
Ala Wadhi, in a speech earlier, acknowledged the interest shown by the speaker of the House of Representatives and its Committee on Aviation, led by Nnaji, towards finding solutions to the member airlines’ blocked funds in Nigeria.
He disclosed that within his regions, “a total of $1.1 billion airlines’ funds are blocked and half of these funds ($550,000,000) are held in Nigeria. I do appreciate your interventions and l urge you to continue to do more so that it can be quickly resolved”.
It would be recalled that the leadership of the House of Representatives had, during the heat of the crisis, intervened by bringing the minister of aviation, Hadi Sirika, the CBN governor, Godwin Emefiele, and IATA representatives, including some of the affected foreign airlines to discuss the way forward.
The intervention led to the phased remittances deployed by the CBN to gradually liquidate the backlog of the trapped funds.