Emirates airline says blocked payments in Nigeria remain substantial

About half of the carrier's outstanding ticket sales revenue in the African country is overdue for repatriation

Emirates suspended flights to the Nigerian cities of Abuja and Lagos over the issue of blocked funds. AFP

Emirates airline is owed a “substantial” amount in ticket sales revenue by Nigerian authorities, with little progress made so far in repatriating the blocked payments from Africa's most populous nation.

The Dubai airline, which halted flights to Nigeria five months ago, declined to reveal the amount withheld in the country.

But about half of the funds approved for clearing within its backlog are overdue for repatriation and the process “remains beset with constant delays”, Emirates said on Friday.

“We have made many concerted efforts to enable a swift return to Nigeria. We had proposed a number of solutions and measures to recover our funds, and engaged in dialogue with government stakeholders and industry bodies,” an Emirates spokeswoman said.

“Regretfully, and despite many media reports of public assurances made at the highest levels, solutions continue to be stalled.”

The comments come a day after Nigeria's Aviation Minister Hadi Sirika said the Dubai airline had received most of its funds out of Nigeria and had about $35 million that still needed to be released, according to Reuters.

Nigeria is the top market where foreign airlines' revenue remains stuck, with $743 million withheld in trapped funds, according to the International Air Transport Association.

Blocked remittances have plagued airlines for years but the situation has been exacerbated by the Covid-19 pandemic, which left airlines strapped for cash after about three years of weak travel demand.

Nigeria's airline repatriation issues began in March 2020, when demand for foreign currency in the country outpaced supply and its banks were not able to service currency repatriations.

Preventing airlines from repatriating funds may appear to be an “easy way to shore up depleted treasuries” but, ultimately, the local economy will pay a high price in the form of reduced air connectivity, Iata said in December.

Emirates, which previously operated flights to both Abuja and Lagos, first suspended the Abuja route. At the end of October last year, it also halted flights to Lagos over the issue of blocked funds.

“Unless there is a committed strategy by the local authorities to deliver concrete action, air services for travellers, for businesses seeking global market opportunities and for investments — all supported through air transport and critical to Nigeria’s economic recovery — will continue to dwindle,” Emirates said.

The airline said it is ready to work with Nigerian authorities to find a solution.

“We remain committed to finding a mutual resolution with the Nigerian government and Central Bank to repatriate the rest of our blocked funds in a swift manner, and provide a road map that includes firm measures to prevent future repatriation accumulation challenges and delays,” it said.

“We call on them to work with us, hand in hand, to ensure Nigerian travellers and businesses have unfettered connectivity and access to our global network.”