(Ecofin Agency) – Nigeria, described as difficult in negotiations related to the transfer of airline revenues, is pushing some of them to opt for severe pressure tactics that might disrupt service to certain destinations.
Difficulties in repatriating airlines’ foreign exchange reserves by the Nigerian central bank are fueling the dissatisfaction of carriers. Emirates Airlines is already threatening to suspend flights to or from the West African country from 1is September 2022, saying his efforts to recover approximately $85 million were unsuccessful.
« Emirates has tried in every way possible to address our current challenges in the repatriation of funds from Nigeria and has made considerable efforts to engage in dialogue with the relevant authorities for their urgent intervention, to help find a workable solution. “, explains the carrier in a press release, adding” that there has been no progress “. At the beginning of August, he announced that he would reduce the number of his flights from 11 to 7, once more for the same reason.
To ease the pressure on its declining foreign exchange reserves due to fluctuating oil prices, Nigeria has opted for prudent management of its foreign currencies. Speaking to the press last June, Kamil Al-Awadi, vice-president of the International Air Transport Association (IATA), revealed that cash belonging to airlines and valued at the end of April at $450 million was blocked in the Nigeria.
Emirates’ move raises concerns that other airlines will follow suit. Apart from Nigeria, which concentrates the bulk of royalties from blocked airlines, 11 other African countries retain currency generated by carriers, for nearly $1 billion, according to IATA.