The House of Representatives Committee on Finance has issued a stern directive to the Federal Airports Authority of Nigeria (FAAN), giving the agency just two weeks to recover over N18.98 billion in outstanding debts owed by foreign airlines operating in the country.
During an ongoing revenue monitoring exercise on Tuesday, the committee, chaired by Hon. James Abiodun Faleke, grilled FAAN officials led by Managing Director Olubunmi Kuku over the escalating debt profile.
Lawmakers described the situation as unacceptable, noting that foreign carriers routinely exceed the stipulated two-week payment window for airport services, with some debts lingering beyond 30 days, 90 days, or even over a year.
Truth Live News gathered that the total outstanding amount currently stands at N18.98 billion, accumulated through charges processed via the International Air Transport Association (IATA) settlement platform. This global clearing system creates “rolling balances,” where new charges pile up while older ones are partially settled, contributing to delays.
A breakdown presented by FAAN highlighted significant liabilities from major international operators, including Qatar Airways and Lufthansa (each owing about N1.5 billion), Virgin Atlantic (approximately N1.35 billion), and others such as KLM, EgyptAir, Ethiopian Airlines, Air France, Royal Air Maroc, Turkish Airlines, and Africa World Airlines (with debts ranging from N700 million to over N1 billion).
Chairman Faleke emphasized the need for full revenue recovery, stating, “We need every kobo that belongs to this country.” He warned that airlines found violating financial obligations would be held accountable.
Lawmakers questioned why FAAN allows operations to continue despite prolonged defaults, asking, “Why would you allow an airline to owe beyond the two weeks allowed?” They further probed whether late payments attract interest and why no stricter sanctions, such as grounding, have been applied to international carriers unlike domestic ones that have faced such measures.
FAAN’s MD explained the complexities of the international credit structure but was directed to provide detailed addresses and documentation for all debtor airlines within the timeframe.
Should the debts remain unpaid, the operators will be summoned to appear before the House to explain the liabilities.
The committee also mandated stronger enforcement mechanisms to curb future accumulation, underscoring the aviation sector’s importance to national economic growth and the imperative of safeguarding public revenue.
