Nigeria Requests Emirates to Resume Flights

By Adeniyi Onifade

There are strong hopes that flights by Dubai-based Emirates Airline will soon resume operations in Nigeria following President Muhammadu Buhari’s intervention that led to reports directing the Central Bank of Nigeria to make more foreign exchange available to the airline.

The move comes after Emirates suspended flights to the West African country last year, citing lack of progress in repatriating funds due to the country’s severe dollar shortage. The airline reportedly negotiated in several meetings with representatives from the Nigerian Aviation Ministry to discover solutions to release funds.

Valuechain reports that President Buhari posted on Twitter recently that while he spoke to United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan to offer condolences on the death of his mother-in-law, he also informed him about the effect of suspended flights.

“I also called for a resumption of suspended Nigerian operations of Emirates Airlines,” Buhari said. “I assured Sheikh Mohamed that the fund repatriation issues that led to the suspension are receiving appropriate attention. We will make additional foreign exchange available for affected airlines.”

The relations between the UAE and Nigeria are essential, according to Buhari in the tweet.

“Nigeria and the UAE have enjoyed excellent and beneficial relations for many years, including at the highest political levels. We can and must continue to iron out whatever issues arising between us,” he said.

Buhari also mentioned that Nigeria is mindful of the consular issues relating to the behavior of some Nigerians in the UAE. He said Nigeria will ensure the application of necessary sanctions, through the appropriate judicial process, against anyone identified to have committed criminal acts in the UAE.

What happened?

Emirates suspended flights to Nigeria twice last year to protest against its ticket revenue being withheld. Following several unsuccessful meetings with the government of Nigeria, the suspension occurred indefinitely.

According to Valuechain findings, Emirates had proposed a plan to progressively release at least 80% of its funds by the end of October 2022. When this did not follow through, the carrier pulled its routes, claiming its Nigerian operations were running at a loss and were no longer commercially viable.

On September 11th, Emirates reinstated its flights to Nigeria after suspending them on September 1st. The carrier demanded the payout of $85 million of its revenue after the Central Bank of Nigeria released $265 million to international airlines to settle outstanding proceeds from ticket sales.

According to the International Air Transport Association, Nigeria topped the list of debtors worldwide by withholding $551 million of airlines’ funds, which Nigerian authorities reportedly engaged with airlines to find solutions.

Challenges in Nigeria:

Repatriation issues first arose in March 2020 when the demand for foreign currency in the country outpaced its supply. Banks throughout Nigeria could not provide currency repatriations, while the country’s federal government implemented a currency redesign.

Valuechain reports that President Buhari approved for the Central Bank to redesign major Nigerian bank notes which eventually caused cash shortfall.

Earlier this month, the President Buhari said he was aware of the cash shortages and hardship faced by people and businesses on account of the Naira redesign. Violent protests have also erupted in Nigeria over the scarcity of cash. This week, protesters reportedly attacked automated teller machines and blocked roads in some cities as a result.

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