Reps to Foreign Airlines: pay N19b debt to Fed Govt
The House of Representatives on Tuesday gave the Federal Airport Authority of Nigeria two weeks to recover about N19 billion debt owed the government by foreign airlines operating in the
The House of Representatives on Tuesday gave the Federal Airport Authority of Nigeria two weeks to recover about N19 billion debt owed the government by foreign airlines operating in the country.
Chairman of the House Committee on Finance, James Abiodun Faleke gave the directive at the resumed investigative hearing and revenue monitoring exercise between 2023 and 2025.
He asked the management of FAAN to report any difficulties encountered in an effort to recover the debt, adding that those who failed to pay up such debt would be summoned to the House to explain why they failed to pay.
Faleke also asked why FAAN has not grounded any of the foreign airlines over the debt owed, adding that is a Nigerian airline fail to pay their debt in other countries, they will not be allowed to operate.
Managing Director of FAAN, Mrs Olubunmi Kuku had told the Committee that the debt owed varies from period to period even though the rules allow payment within two weeks.
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She listed the some of the debt to include N1.16 billion owed by Qatar Airline, N1.5 billion by Lufthansa Airline, N476 million by British Airways, N1.357 billion by Virgin Atlantic, N1.252 billion by KLM, N1.1 billion by Egypt Air, N1.127 billion by Ethiopia Airline, N1 billion by Air France, N940 million by Air Royal Maroc, N845 million by Turkish airline and N746 million by African World Airline.
She said part of the delay is associated with the process of reconciliation with the International Air Traffic Association, adding that the debt ranges from one to 30 days and 30 to 90 days.
A member of the Committee, Billy Osawaru wondered why FAAN would allow the foreign airline to pay their debt to the agency instalmentally as well as hold on to the debt beyond the two weeks allowed by law.
He said by holding on to the debt beyond the legally allowed two weeks, the foreign airlines were in breach of the nation’s laws, asking whether they will be paying the debt with interest.
