The Speaker of the House of Representatives Femi Gbajabiamila on Monday intervened in the ongoing dispute between Nigeria and foreign airlines over the controversial “trapped funds” belonging to the airlines.
He said there is a need for local airlines in Nigeria to be given a level playing ground as their foreign counterparts in the aviation sector.
Gbajabiamila made these remarks at a meeting with Aviation Stakeholders in Abuja, he said the meeting is centred on issues affecting domestic airlines, as well as blocked funds for foreign airlines.
Speaking, Chairman, House Committee on Aviation, Nnoli Nnaji urged Nigerians to not allow to be exploited for things they know nothing about, said foreign airlines are exploiting Nigerians to the extreme.
Spokesperson, Airlines Operators of Nigeria, Prof Obiora Okonkwo accused foreign carriers operating in Nigeria of charging fares at prevalent parallel market foreign exchange naira to dollar rate.
He noted that the cost of tickets are already high and that foreign airlines converting tickets with the parallel markets rates instead of the Central Bank rates makes tickets even higher.
Prof Okonkwo who said the cost disparity killing local airlines, however, debunked claims that foreign airlines’ funds were blocked as even local airlines could not access their funds due to inaccessibility to foreign exchange.
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The spokesman added that the only support the sector enjoyed due to the Covid-19 was $4 billion from the Nigerian government, which is grossly inadequate compared to the support other countries gave their airlines.
After a meeting chaired by the Speaker of the House, Rep. Femi Gbajabiamila, in Abuja and attended by representatives of the airlines, International Air Transport Association (IATA), Airlines Operators of Nigeria (AON), travel agencies and other aviation industry stakeholders, some understanding was reached to find quick solutions to release the huge sums owed the airlines.
Chief Executive Officer of an airline, Allen Onyema stressed that Nigerian airlines were not against foreign airlines repatriating their funds, but that Nigerians must begin to destigmatise.
Area Manager, West & Central Africa of the International Air Transport Association (IATA) Dr Samson Fatokun noted that $700 million airlines fund are trapped in Nigeria as the nation’s account policy was driving aviation investors away.
AON at the session made a strong case for the protection of the interests of Nigerian airlines in foreign countries, stated that the number of flight slots allocated to Nigerian operators in other countries, compared to the high number foreign airlines enjoy in Nigeria.
The speaker adjourned the meeting to Thursday, promising to invite the CBN governor to address the issues of foreign exchange.
