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Nigeria’s Release of $743 Million in Airline Funds Offers Relief to Emirates, Qatar Airways, and Lufthansa Group

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Emirates, Qatar Airways, and Lufthansa Group have reason to be optimistic as Nigeria vows to repay $743 million in airline money that the country withheld for a long time due to a severe dollar shortage.

This move comes after the airlines suspended flights to Nigeria after the country withheld revenue from ticket sales, and despite repeated requests to resume flights, the airlines stood by their decision. Nigeria’s aviation minister, Hadi Sirika, confirmed that the country is releasing funds from foreign airline ticket sales, but did not provide a timeline.

Emirates Airline, which has a “substantial” amount of ticket sale revenue trapped in Nigeria, has made slow progress in repatriating blocked funds out of Africa’s biggest economy, with about half of the amount in its backlog overdue for repatriation.

The Emirates spokesperson declined to disclose the amount trapped in Nigeria, but said the process “remains beset with constant delays.” President Muhammadu Buhari in February directed the central bank to increase the amount of foreign currency allocated to Emirates after the airline suspended flights to and from Nigeria because it was unable to repatriate funds.

Nigeria suffers from severe dollar shortages, forcing people and businesses in the country to look for foreign exchange on the black market, where the naira currency has become progressively weaker. Nigeria owes the highest amount owed by any nation, according to the International Air Transport Association (IATA), which has called on governments to prioritize payments to airlines to help the industry recover from the COVID-19 pandemic.

The aviation industry has been one of the worst-hit by the pandemic, with many airlines forced to suspend flights and lay off staff. The return of withheld funds to airlines operating in Nigeria will go a long way in helping the industry recover from the pandemic’s impact. It is hoped that Nigeria will honor its commitment to release funds from foreign airline ticket sales, allowing airlines to resume flights to the country and provide much-needed connectivity for business and leisure travelers.

 

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