The National Association of Nigeria Travel Agencies (NANTA) has praised the Federal Government’s move to clear the $850 million debt owed to foreign airlines, stating that this action will significantly enhance Nigeria’s reputation and standing within the international community.
NANTA commended the Federal Government and its agencies (Central Bank of Nigeria (CBN), Nigerian Civil Aviation Authority (NCAA), Federal Competition and Consumer Protection Commission (FCCPC), and Ministry of Aviation and Aerospace Development) for their collaborative effort in resolving the long-standing issue of trapped funds, praising their commitment to clearing the $850 million debt owed to foreign airlines.
NANTA President, Yinka Folami, praised the government’s intervention in clearing trapped funds, noting that the association’s members and travelers suffered greatly from the issue. He commended the collaborative efforts of government agencies, which led to stability in Nigeria’s travel trade market.
Yinka Folami urged that the collaborative spirit and commitment to equity and fair play, led by Festus Keyamo and the Inter-Agency Committee (comprising NCAA, FCCPC, and NANTA), continue to ensure sustained monitoring and stability in the travel industry.
Yinka Folami said:
“The Federal Government and its relevant agencies deserve commendation for the speedy resolution of the vexatious trapped funds of foreign airlines in Nigeria. The gesture positively deepens the image of Nigeria as a destination with global rubrics on trade and investments.”
He urged the CBN to clear the remaining $19 million debt and encouraged foreign airlines to lower fares and collaborate to prevent the migration of Nigerian travel trade opportunities to cross-border trading.
NANTA President, Yinka Folami, urged IATA to address issues affecting the Nigerian market, including point-of-sales and the impact of Return On Equity (ROE) application, which drives speculation, parallel market purchases, and naira pressure. This leads to the migration of Nigerian travel trade opportunities and the purchase of Nigeria tickets outside the country.
Folami proposed a more sensitive approach from IATA to create a stronger and more enduring environment for stable market growth.
Yinka Folami expressed his trust in IATA’s ability to support Nigeria, saying: “We believe and trust that IATA can be more circumspect and supportive to check these trends and also show commitment to supporting our government and our businesses as they have done elsewhere.”
He added:”This government has lived up to its promises and deserves support from foreign partners to ensure that our people and businesses are treated with same measure of respect and commitment to shared objectives.”
Earlier, at its 80th Annual General Meeting (AGM) in Dubai, IATA announced that Nigeria had cleared 98% of the blocked funds owed to foreign airlines, leaving only $19 million pending.
The National Association of Nigeria Travel Agencies (NANTA) reported that, as of April 2024, Nigeria had cleared 98% of the blocked funds owed to foreign airlines, amounting to $850 million at its peak in June 2023.
The remaining $19 million, according to IATA’s Director-General, Willie Walsh, is pending verification by the Central Bank of Nigeria (CBN) of outstanding forward claims filed by commercial banks.
Willie Walsh, IATA’s Director-General, praised the Nigerian Government and Central Bank of Nigeria (CBN) for their efforts to resolve the blocked funds issue, stating:
“Individual Nigerians and the economy will all benefit from reliable air connectivity for which access to revenues is critical.”
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He encouraged the government to clear the remaining $19 million and prioritize aviation, saying:
“We are on the right path and urge the government to clear the residual $19 million and continue prioritizing aviation.”
