Foreign Airlines $600m Backlog Still Trapped In Commercial Banks- Keyamo
The Minister of Aviation and Aerospace, Festus Keyamo, has stated that foreign airlines have about $600 million backlog still trapped in commercial banks.
He clarified that the initial money being owed to the foreign airlines was about $700 million out of which the Central Bank of Nigeria (CBN) has cleared $136.73 million, adding that the remaining balance were transactions the foreign airlines had with the commercial banks.
“It is the naira component deposited at the commercial banks that the banks have not been able to pay them the dollar equivalent, not the CBN,” he explained.
The minister, who spoke on the sidelines of the 10th edition of the Annual Aviation Workers Week and Award Niger in Abuja, added: “The ones for the CBN are actually the ones they promised to pay during their normal weekly auction they did two to three years ago up to this year.
The CBN has been able to fulfill that obligation to foreign investors. Government has shown its capacity to fulfill its dollar obligation to foreign investors.”
On whether the high exchange rate would lead to high airfares, the minister stressed that the government was doing all it can to force down airfares.
He reiterated that the government was working hard to ensure that local airlines are competitive on the foreign route, saying one of the ways to achieve that is to allow local airlines to have access to dry leases at single digit.
He said: “There is no way our local airlines can compete for loans at 26 per cent. What we are doing is to go all over the world to get aircraft for them so that they can compete in those routes that our Bilateral Air Service Agreement (BASA) has allowed us to compete in.
“If for instance British Airways has 14 slots to come into Nigeria every week, we should also have our local airlines reciprocate and have 14 slots going to the UK every week. That competitiveness is what will force down the price.”
Keyamo also disclosed that the relocation of the headquarters of the Federal Airport Authority of Nigeria (FAAN) would save the Federal Government the sum of N1 billion annually.
Keyamo said that the decision to move the headquarters back to Lagos was after consultation with stakeholders including workers’ unions in the aviation sector. The minister, who also got an award, congratulated the workers for sustaining the annual event.
Keyamo stated that the theme of the aviation week, ‘Workers as Strategic Partners in Achieving the Aviation Road Map’ was apt as the aviation industry cannot succeed without the workers. He noted that how the workers are treated would determine their level of efficiency.
The Chairman, Joint Consultative and Negotiating Council, Hector Nnamdi, who said the movement of FAAN to Lagos was in national interest, noted that the event, which marks the grand finale of the programme, was tailored towards a contemporary subject in the aviation sector.
“Without doubts, the Nigerian aviation industry has witnessed a series of policy overhauls with moderate results. We pride ourselves in the implementation of the Aviation Roadmap from 2012 till date. It must, however, be re-emphasised that over the years, the critical roles of workers in the industry had not received the desired attention from the drivers of the roadmap, hence the minimum results achieved,” he said. He, however, expressed confidence that the minister would partner with the workers for maximum input.
