Follow Us on Google
By Chinelo Obogo, Lagos
Minister for Information and Culture Lai Mohammed has said that the federal government is working hard to resolve the issues caused by $464 million blocked funds belonging to foreign airlines from ticket sales.
Mohammed said this during a press conference held after a facility tour of the new Murtala Muhammed International Airport terminal, Lagos, on Monday.
The International Air Transportation Association (IATA), last Thursday, expressed disappointment at the federal government over the inability of foreign airlines to repatriate $464 million accumulated from the sale of flight tickets which has been trapped in Nigerian banks.
The global airline body said that the foreign airlines’ funds being blocked in Nigeria increased to $464million in July from $450 million in May stating that the figure grew by $14 million.
Emirates had last week announced the suspension of flights to Nigeria over its $85m trapped in Nigeria and there are speculations that if the situation is not resolved, two more airlines may suspend operations by December.
Reacting to this, however, the minister said the federal government is working on resolving the issue.
He said: “On the trapped funds, I can tell you that the relevant authorities are working hard on that issue.”
Speaking on why the new terminal is yet to be fully utilised, he said: “There is a time between the commissioning of an airport and when the airport becomes operational. You know aviation is unforgiving of any mistake. So we need to test-run and be extremely certain that every equipment is working optimally. The beauty of it is that this airport has become operational. You can come in here and continue to various parts of the world.
“When the old airport was commissioned, it took quite a while for it to become operational. The new international terminal is not to replace the old one but to complement it. It is gradual and very soon this airport will be very busy.”
Also speaking on the operations of the new terminal, the Managing Director of the Federal Airport Authority of Nigeria (FAAN), Capt Rabiu Yadudu, said that by September 1, five airlines will start operating at the new terminal.
Read also: Police arrest notorious online vendor robber in Lagos
He also denied reports that FAAN has increased landing and parking charges, insisting that the rate has remained the same since 2012.
“In the area of the operations of airlines, aviation is a very sensitive business. We will rather take our time than start on the wrong footing and that does not mean nothing is being done. From September 1, which is in the next two weeks, five more airlines are scheduled to start operations in the new international terminal.
More than eight airlines showed interest but five are starting on September 1 from the international terminal.
“On the landing and parking cost, the charges being collected by FAAN are statutory and therefore cannot be increased without the knowledge of our esteemed passengers and other airport users.
“While it is true that the cost of aviation fuel has gone astronomically high and has adversely affected airline operators worldwide, culminating in an increase in ticket fares, we want to reiterate that FAAN has not increased its charges.”
Also speaking at the press conference, the Director General of the Nigerian Civil Aviation Authority (NCAA), Capt. Musa Nuhu, denied reports that the agency has increased charges for private planes, saying: “As the DG NCAA, I am not aware and I have not authorised any charge increase. Misinformation is creating a lot of problems. The truth of the matter is that the last time NCAA increased its charges was 10 years ago.
” If we are charging N5,000 10 years ago and we are still charging that, then you calculate the inflationary pressures. We are not recovering our costs. We are providing services and subsidising it. We understand the difficulties facing the industry now, but going forward, we have to sit down and review it because NCAA does not get any money from the federal government. All our revenues are internally generated and we need this to provide the appropriate services for the safety, security and efficient service delivery to the public. NCAA can also not increase any charge without having a stakeholders consultation.”
