Airlines trapped funds: FG directs CBN to reconciliation meeting 

By Chukwuemeke Iwelunmo

In a bid to resolve the lingering trapped airlines’ trapped funds, President Bola Ahmed Tinubu has directed that the Central Bank of Nigeria (CBN) hold quarterly reconciliation meetings with a view to finding a lasting solution to a matter that has damaged the country’s reputation in the eyes of the global aviation industry.

The Minister of Aviation and Aerospace Development, Mr. Festus Keyamo made the disclosure yesterday at the 7th Aviation Africa Summit and Exhibition holding in Abuja.

Keyamo noted that the current administration was open to providing tax holidays to encourage existing and new entrants into the Nigerian aviation sector.

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It is not clear how much foreign airlines’ fund is still held by Nigeria, it is estimated that it may have risen to more than $500 million. Scarcity and pressure on the country regarding foreign exchange resulted in Nigeria being unable to release all of the monies of international carriers.

The Minister noted that the current administration was aware that one of the setbacks entrepreneurs have suffered in Nigeria in recent years is the fluctuation of foreign exchange and its availability, stressing that it is the vision of this current administration to make Nigeria the aviation hub of Africa.

He, however, noted that in order to attract foreign investors, the government is already looking at the following areas to improve aviation business in Nigeria through infrastructure upgrade, upgrading of the Category Three Instrument Landing System (ILS) at major airports, construction of the second runway in Abuja, airport improvement programmes through concession and government willingness to partner with companies to turn major airports into aerotropolis.

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Other initiatives in the aviation sector roadmap which he said the government has fully adopted include the creation of aircraft leasing companies.

The government, according to the Minister welcomes major players in aircraft leasing and head lessors to invest in Nigeria airlines to provide state-of-the-art aircraft, adding that the government would ensure enforcement of contract agreements and the rights of investors and all parties are protected.

Nigeria, being a signatory to the Cape Town Convention he reiterated would help to uphold the international convention.

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