FOREX CRISIS: $567 MILLION IN FROZEN ASSETS AS FG MEETS AIRLINES

It was learned on Sunday that the Federal Government would meet with foreign airlines operating in Nigeria to discuss matters relating to the international carriers' trapped cash, which have now reached a total of $567 million.

Emirates Airlines, located in Dubai, had already declared on Thursday that its flight operations in Nigeria will be suspended indefinitely. Operators added that other foreign airlines might also stop operating.

According to information received on Sunday from the International Air Transport Association, Nigeria had the most blocked money ($567 million) for international carriers as of September 2022.

According to IATA, the amount of frozen cash in the sector has climbed by 27% over the past six months, totaling $1.851 billion. The increase in sales markets and the decline in Nigeria, Pakistan, Egypt, Russia, are the two main causes of the greater total amount blocked.

The top nation with blocked cash is Nigeria, where airlines now have a balance of $567 million, the statement continued.

However, Kingsley Nwokoma, the president of the Association of Foreign Airlines and Representatives said that the debts had increased beyond what had been noted in September.

The Federal Government has not been able to meet down with airlines to discuss how to pay off the debts, he said, adding that it had been increasing by the minute due to ticket sales.

Do you realize what that means？ Tickets are selling every minute as I speak to you. There will be more money that is stuck and blocked. The government has been unable to come to a payment plan agreement.

The funds are growing every day, and if we haven't sat down to decide how to pay off the loan, whether monthly or quarterly, we're back where we started.

It's different from when the debt is building every minute when you owe me money if the loan is not growing and you are paying it off. Additionally, there is no prior agreement regarding how the payment will be made.

OVERSEAS AIRLINES

Nwokeoma responded, “All the foreign airlines are being owed,” when asked to name the specific international carriers and the sum owing.

It's only that some, like Emirates Airlines, Qatar Airlines, Turkish Airlines, Virgin, British Airways, etc., are more noticeable than others due to their numerous frequencies. You are owed more the more operations and frequencies there are.

Safety may be compromised if the money is not being paid, hence the airlines halt operations in order to prevent such a compromise.

But he added, “but, of course, when airlines begin to shut down operations it must be a thing of worry to ministry in charge of aviation,” despite the flow of funding was outside the ministry's control.

“This especially when we know well well that it is going to effect a lot of Nigerians, as some have already booked their journey and are going to have it canceled, as well as those who have plans to utilize that airline for travel,” Odaudu continued.

Therefore, I don't believe that halting flights is the best course of action. The CBN promised to release additional money after releasing some.