$85m fund: Reactions trail Emirates’ halt of Nigerian flights

There were mixed reactions on Thursday over the plan by Emirates Airlines to suspend flights to Nigeria with effect from September 1 over blocked $85 million funds. While some stakeholders see the plan as a subtle pressure on the federal government, others asked the government to do the needful in order to boost the confidence […]

There were mixed reactions on Thursday over the plan by Emirates Airlines to suspend flights to Nigeria with effect from September 1 over blocked $85 million funds.

While some stakeholders see the plan as a subtle pressure on the federal government, others asked the government to do the needful in order to boost the confidence of investors in the Nigerian economy.

Emirates’ decision followed its inability to repatriate its funds from Nigeria even as findings showed that other airlines may be exploring the same option.

Emirates suspends all Nigerian flights over $85m blocked funds

CBN halts cheap money, raises interest rate on intervention funds

The airline had in a leaked letter to the Minister of Aviation, Hadi Sirika said it would reduce its frequencies in Nigeria from 11 to seven by mid-August over its trapped $85m in Nigeria. Such trapped funds including those of other foreign airlines are over $600m.

The Bilateral Air Service Agreements (BASAs) mandate foreign airlines to issue tickets in naira while the Central Bank of Nigeria (CBN) provides the dollar equivalent.

In a statement on Thursday, Emirates said it will stop all its flights to Nigeria, adding it might re-evaluate its decision if there was any positive development in the coming days.

President of the National Association of Nigerian Travel Agencies (NANTA), Mrs Susan Akporiaye warned that Nigeria may be facing another lockdown as more foreign airlines may resort to suspending flights.

“Until the issue is resolved, other airlines might be doing the same thing. We didn’t meet our own end of the bargain. BASAs say airlines should be allowed to repatriate their funds unhindered.”

Another airline official said the Emirates’ decision is to force Nigeria to release the scarce dollars to foreign airlines.