THE GUARDIAN
• Woos aviation investors with tax holidays, other incentives
• IATA ranks Nigeria highest in airport charges in Africa
President Bola Tinubu, yesterday, directed the Central Bank of Nigeria (CBN) to create a platform for quarterly reconciliatory meetings with foreign airlines, towards settling accumulated trapped funds.
Minister of Aviation and Aerospace Development, Festus Keyamo, disclosed this in Abuja at the ongoing African Aviation Summit.
He noted that the development was one of the reasons President Tinubu travelled to the United Arab Emirates (UAE) to address.
He expressed his displeasure with the trapped funds of foreign airlines in Nigeria Before the Minister’s directive, foreign airlines had found it difficult to get their funds due to Nigeria’s foreign exchange (forex) policy.
Keyamo, while stating that he believes that a proactive approach is necessary to find a lasting solution to the issues, added that the Federal Government was also addressing the challenges associated with forex supply, which resulted in the huge sum of money being owed foreign airlines.
He said: “The current administration is aware that one of the setbacks entrepreneurs have suffered in Nigeria in recent years is the fluctuation of forex and its availability.
“This administration is committed to ensuring that forex is readily available to entrepreneurs and I have directed that the CBN hold quarterly reconciliation meetings with a view to resolving this issue.”
He also noted that President Tinubu was on Monday in the UAE to resolve the issue of blocked funds, among other issues.
The Minister also unveiled three roadmap projects, which include Aerotropolis, Aircraft Leasing Company (ALC), and Maintenance Repair and Overhaul (MRO) facility.
He further unveiled five focus areas to realise the country’s vision of becoming an aviation hub in Nigeria. The key areas listed include infrastructure upgrade, ALC, MRO facility and forex availability.
“Government welcomes major players in aircraft leasing and lessors to invest in Nigerian airlines to provide state of the art aircraft. The government will ensure the enforcement of contract agreements and the rights of investors and indeed all parties are protected and Nigeria being a signatory to the Cape Town Convention will uphold international obligations.
“Also, CBN is open to providing tax holidays to encourage existing and new entrants into the aviation sector. I wish to reiterate that this administration will continue to sustain the support given to the industry.
“MRO facility is another critical aspect that can make the Nigerian aviation industry a hub on the continent. With the shortage of qualified engineers, the current administration is willing to provide all the necessary support for the establishment of world-class MROs and training organisations.”
Meanwhile, the International Air Transport Association (IATA) has criticised Nigeria over multiple charges imposed on airlines operating in the country.
The global trade body representing the airline industry recently queried the Federal Government for not being responsive to the foreign airlines’ inability to repatriate their funds in excess of $800 million.
In Nigeria, foreign airlines collect Naira for their tickets to customers and exchange the same for foreign currencies for their operations, but they have been faced with their inability to get the exchange executed through the official foreign exchange market due to the scarcity of forex resources…
