By By Elizabeth ugbo
The House of Representatives Committee on Finance has directed the Federal Airports Authority of Nigeria (FAAN) to recover over N18.9 billion owed by foreign airlines within two weeks. The directive came on Tuesday during a revenue monitoring session at the National Assembly of Nigeria. Committee Chairman James Abiodun Faleke issued the order while FAAN Managing Director Olubunmi Kuku briefed lawmakers on the outstanding debts owed by international airlines operating in Nigeria.
Lawmakers Demand Immediate Recovery of Airline Debts
The committee expressed concern over the growing debt profile of several international airlines. Lawmakers warned that the situation could weaken government revenue collection.
Faleke stressed that Nigeria must recover all outstanding funds owed to the government.
“We need every kobo that belongs to this country,” Faleke said.
He added that airlines that violate financial obligations must face strict enforcement measures.
FAAN Explains Airline Payment System
During the briefing, Kuku explained that airlines must settle service charges within two weeks.
However, she noted that several operators have exceeded the payment window. Some debts have remained unpaid for more than 30 days. Others have crossed the 90-day mark, while a few stretch beyond one year.
Kuku also explained that international airlines process payments through the global settlement platform managed by the International Air Transport Association (IATA).
According to her, this system allows airlines to make payments through a centralised financial platform used globally for aviation ticketing and settlements.
However, she added that the system sometimes introduces settlement delays.
Breakdown of Airlines Owing FAAN
Kuku presented a detailed breakdown of the outstanding liabilities.
She disclosed that the total debt owed to FAAN currently stands at N18.98 billion.
According to the report:
- Qatar Airways owes about N1.5 billion.
- Lufthansa owes roughly N1.5 billion.
- Virgin Atlantic owes about N1.35 billion.
- KLM owes over N1 billion.
- EgyptAir owes over N1 billion.
- Ethiopian Airlines owes over N1 billion.
Other airlines with debts between N700 million and N1 billion include:
- Air France
- Royal Air Maroc
- Turkish Airlines
- Africa World Airlines
She explained that airline debts operate as rolling balances. Therefore, new charges may accumulate while older debts are gradually cleared.
FAAN Enforcement Measures Against Defaulting Airlines
Kuku told lawmakers that FAAN monitors airline debt profiles closely.
According to her, FAAN begins stricter engagement once liabilities exceed 30 days. Furthermore, debts older than 90 days attract stronger enforcement actions.
She revealed that FAAN has grounded some domestic airlines in the past for failing to settle their obligations.
However, international airlines operate under global credit arrangements. Therefore, enforcement often requires coordination with global aviation settlement systems.
Reps Question FAAN’s Debt Enforcement
Despite the explanation, lawmakers questioned why airlines accumulated large debts.
One lawmaker asked FAAN officials why defaulting airlines were not sanctioned earlier.
“Why would you allow an airline to owe beyond the two weeks allowed?” the lawmaker asked.
Lawmakers also demanded to know whether airlines that pay after the deadline must pay interest.
They warned that continued delays could amount to negligence.
Committee Demands Full List of Debtor Airlines
The committee ordered FAAN to provide full documentation on all indebted airlines.
Lawmakers also requested the addresses and operational details of the airlines listed as debtors.
Furthermore, the committee warned that it may invite the airlines to appear before the House if they fail to clear their debts within the two-week deadline.
