The President of Association of Foreign Airlines and their Representatives in Nigeria (AFARN), Dr Kingsley Nwokoma has advised the Federal Government , the Central Bank of Nigeria (CBN), and the Ministry of Aviation and Aerospace Development on the best formula to offset the over $800 million trapped in Nigeria.
Nwokoma said unless the government works out a sustainable model for clearing the huge backlog of funds owed foreign carriers the amount will continue to balloon and push the affected carriers on tenterhooks.
Speaking at a briefing at AFARN’s office at the Cargo Wing of the Lagos Airport , yesterday, Nwokoma said the Federal Government needs to demonstrate more sensitivity in handling the matter concerning foreign carriers as failure to release revenue from ticket sales in Nigeria may force the carriers to withdraw flight services into the country.
He said the $61million recently released by the CBN, was a pittance compared to the huge sum held back in Nigeria.
Nwokoma said unless the Federal Government evolve measures to release the trapped funds in huge tranches, the price of air tickets will continue to rise astronomically .
He said: “The issue of foreign carriers trapped funds is a key matter that the Federal Government should urgently seek lasting solutions to. One of the ways to go about resolving the matter is for the Federal Government to agree to quarterly payment and ensure it keeps to the agreement to clear the backlog.
“If the government fails to do the needful, you will discover that one day foreign carriers will stop flying into Nigeria, because the withholding of funds is affecting their operations.
“You will recall that some foreign carriers have stopped operating into Nigeria because of trapped funds and other challenges.”
