By By Elizabeth Ugbo
The House of Representatives, on Tuesday in Abuja, began moves to recover over $7bn allegedly owed to Nigeria’s Federation Account by foreign airlines operating in the country since 2023, as part of a 2023–2025 revenue monitoring exercise targeting the Federal Airports Authority of Nigeria (FAAN).
House Committee Flags Revenue Leakages
The Chairman of the House Committee on Finance, Abiodun Faleke, disclosed this at the flag-off of the review session in Abuja.
Faleke, who represents Ikeja Federal Constituency, expressed concern over mounting debts owed by both foreign and domestic airlines.
He said lawmakers want a detailed record of all outstanding debts from 2023 to 2025. According to him, Nigeria cannot ignore revenue leakages amid rising fiscal pressure.
“We are aware that when President Bola Tinubu took office, over $7bn was owed by international carriers,” Faleke said.
He also demanded passenger manifests and flight data for the review period.
FAAN Reports N17.78bn Outstanding from Airlines
The Managing Director of the Federal Airports Authority of Nigeria, Mrs Olubunmi Kuku, told lawmakers that airline operators owed N25.86bn in 2023.
FAAN recovered N8.08bn, representing 31.25 percent. However, N17.78bn remains unpaid.
Kuku did not disclose recovery figures for 2025. She explained that both foreign and domestic airlines, including defunct carriers, owe the debts.
Revenue Performance Falls Below Target
Documents submitted to the committee revealed further concerns.
FAAN generated N191.43bn out of an approved target of N292.93bn between 2023 and 2025. This represents 65.35 percent performance and a shortfall of N101.5bn.
Lawmakers questioned the agency’s accounting framework. They also raised concerns about inconsistencies in the figures presented.
IATA Clearing System Under Scrutiny
Kuku explained that the International Air Transport Association handles certain foreign airline remittances through international clearing systems.
She noted that this process sometimes delays payments.
However, lawmakers expressed dissatisfaction with the explanation. They argued that Nigeria’s rising public debt demands stronger revenue enforcement.
Aviation Charges and Compliance Issues
Airlines operating in Nigeria must remit statutory charges through FAAN and other aviation agencies.
These charges include:
- Landing fees
- Parking fees
- Passenger service charges
- Terminal navigation charges
- Regulatory levies
Over the years, delayed remittances and accumulated debts have persisted.
Meanwhile, the committee has intensified oversight of government agencies. Lawmakers aim to improve remittances into the Federation Account and reduce borrowing.
Push to Strengthen Public Finances
Nigeria currently faces fiscal strain and a widening budget deficit. Therefore, lawmakers say recovering unpaid aviation charges remains critical.
They believe plugging revenue leakages will strengthen public finances. It will also support infrastructure development without excessive borrowing.
Faleke directed FAAN’s management to reappear before the committee with a comprehensive statement of indebtedness. He also requested detailed manifests of all airlines that operated within the review period.
