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Reps query foreign airlines’ N18.98bn debt, give FAAN two-week recovery deadline

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The House of Representatives Committee on Finance on Tuesday directed the Federal Airports Authority of Nigeria to recover the N18.98bn owed to the Federal Government by foreign airlines operating in the country within two weeks.

The directive was issued by the Chairman of the Committee, James Faleke, when officials of FAAN, led by the Managing Director, Olubunmi Kuku, appeared before the panel as part of its ongoing revenue monitoring exercise.

Lawmakers expressed displeasure over what they described as the growing debt profile of international airlines operating in Nigeria, insisting that the situation was unacceptable.

Faleke noted that the accumulation of such liabilities, despite clearly defined payment timelines for airport service charges, raised serious questions about revenue enforcement in the aviation sector.

Earlier in her presentation, the FAAN managing director explained that airlines operating in Nigerian airports are required to settle their service charges within two weeks.

She, however, disclosed that a number of operators had exceeded that window, with some liabilities stretching beyond 30 days, 90 days and, in certain cases, more than one year.

Kuku also presented a breakdown of the outstanding debts owed by several international carriers.

Among the airlines listed were Qatar Airways, Lufthansa, British Airways, Virgin Atlantic, KLM, EgyptAir, Ethiopian Airlines, Air France, Royal Air Maroc, Turkish Airlines and Africa World Airlines.

She explained that the figures represent charges for services provided by FAAN and collected through the settlement platform of the International Air Transport Association.

According to her, Qatar Airways currently owes about N1.5bn, while Lufthansa’s outstanding liability also stands at approximately N1.5bn.

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She further stated that Virgin Atlantic owes about N1.35bn, while KLM, EgyptAir and Ethiopian Airlines each owe over N1bn in varying categories of current and outstanding payments.

Other airlines listed in the debt profile include Air France, Royal Air Maroc, Turkish Airlines and Africa World Airlines, with liabilities ranging between N700m and N1bn.

The FAAN boss told the committee that the total outstanding amount owed by the airlines currently stands at N18.98bn.

Lawmakers, however, queried why the airlines were allowed to accumulate such debts despite the stipulated two-week payment window.

A member of the committee asked FAAN why operators who fail to meet their obligations within the approved timeframe were not sanctioned or barred from operating at Nigerian airports.

“Why would you allow an airline to owe beyond the two weeks allowed?” the lawmaker queried.

The committee also demanded to know whether airlines that eventually settle their obligations after the deadline are required to pay interest on the outstanding sums, warning that persistent delays could amount to negligence.

Members further questioned why certain airlines were allowed to continue operations despite carrying debts exceeding 90 days or even one year, stressing that such practices could undermine revenue enforcement.

Responding, Kuku explained that international airline payments are often processed through a global clearing system operated by IATA, which sometimes results in settlement delays.

She noted that the system allows airlines to make payments through a centralised platform used globally for aviation ticketing and financial settlements.

According to her, FAAN closely monitors the ageing of airline debts and intensifies engagement with operators once liabilities exceed 30 days, while debts above 90 days attract stronger enforcement measures.

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She also revealed that FAAN had, on some occasions, grounded airlines that failed to meet their payment obligations, particularly domestic operators that do not operate under the same global credit structure as international carriers.

Despite the explanation, lawmakers insisted that stricter enforcement mechanisms must be introduced to prevent the continued accumulation of debts.

The committee subsequently directed FAAN to provide detailed addresses and documentation for all the airlines listed as debtors.

It also warned that the affected operators would be invited to appear before the House to explain the outstanding liabilities if they fail to clear the debts within the stipulated period.

“We need every kobo that belongs to this country,” Faleke said, warning that airlines found violating their financial obligations would be held accountable.

Foreign airlines operating in the country are required to pay a range of statutory charges for the use of airport facilities and services provided by FAAN.

These include passenger service charges, landing and parking fees, aeronautical service charges and other operational levies.

PUNCH Online reports that over the years, the recovery of such charges has occasionally been complicated by the global settlement structure used in the aviation industry, where airlines process payments through the International Air Transport Association’s clearing system.

Under this arrangement, airlines operating in multiple jurisdictions settle certain charges through centralised platforms that aggregate payments before disbursement to airport authorities and service providers.

However, Nigerian lawmakers have repeatedly raised concerns that the system should not be used as a basis for prolonged delays in settling debts owed to government agencies.

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The latest directive by the House Committee on Finance forms part of a broader effort by the National Assembly to strengthen revenue collection by federal agencies and block leakages in government income streams, particularly in sectors considered critical to national economic growth.

punch.ng

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PHOTOS: FG Approves Upgrade Of Onne, Rivers, Delta, Calabar Ports

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The federal government has approved the comprehensive modernisation and upgrade of Onne, Rivers, Delta and Calabar ports as part of efforts to expand Nigeria’s maritime infrastructure beyond Lagos.

Minister of Marine and Blue Economy, Adegboyega Oyetola, disclosed this in a post on X, noting that the approval builds on the government’s earlier plan to modernise and upgrade the Apapa and Tin Can Island ports in Lagos.

According to the minister, the latest approval is aimed at developing a more balanced, efficient and globally competitive port system.

“Under the leadership of President Bola Ahmed Tinubu @officialABAT, infrastructure renewal and economic diversification remain central to the Renewed Hope Agenda,” the minister said.

He explained that efficient port infrastructure was essential to the government’s economic objectives because of its role in facilitating trade, supporting industries and attracting investments.

“Modern and efficient ports are critical to this vision because they facilitate trade, support industry, attract investment and create jobs.

“Extending the modernisation programme beyond Lagos will complement ongoing investments in Apapa and Tin Can Island, while helping to reduce the concentration of cargo traffic around Lagos and creating additional efficient gateways for international trade.”

Oyetola said the planned upgrades at Onne, Rivers, Delta and Calabar ports would improve cargo handling and operational efficiency, while reducing the time vessels spend at the ports.

IHe added that the projects would also strengthen regional connectivity and make the movement of goods more predictable and cost-effective.

“These ports have strategic roles to play in our trade, industrial and regional development, and we are determined to equip them to meet the demands of a growing economy,” Oyetola added.

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The minister said the approval formed part of a wider government strategy to expand the country’s maritime infrastructure.

He noted that the federal government had also approved the development of the Ibom, Bakassi, Agge, Gateway, Ondo and Bonny deep seaports.

“Our approach is comprehensive. We are modernising existing ports while facilitating the development of new deep seaports,” he said.

Oyetola said the combination of existing port upgrades and new deep seaport projects would increase Nigeria’s maritime capacity and strengthen economic connections across the country.

“Together, these investments will expand Nigeria’s maritime capacity, create stronger economic corridors and position our country as a major maritime and logistics hub in Africa.

“Our vision is an integrated maritime and logistics system in which ports, roads, rail, inland waterways and other transport infrastructure work together to enable the seamless movement of cargo.

“We want Nigerian businesses to spend less time and resources moving their goods, while creating an environment that encourages investment and supports job creation.”

Oyetola said the ministry would continue to collaborate with state governments, terminal operators, investors, shipping companies and other stakeholders to ensure the projects deliver tangible improvements to Nigeria’s marine and blue economy.

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We Were Afraid Social Media Would Completely Kick Us Out Of Business – Jide Kosoko

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Veteran Nollywood actor, Jide Kosoko, has recalled how the rise of social media sparked fears among older entertainment industry practitioners that they would be completely kicked out of their jobs.

It was reports that Kosoko made this known during an interview with Punch. News

The ace movie star said many people worried that the technology could push them out of business.

However, reflecting on the emergence of artificial intelligence (AI), Kosoko admitted that he was yet to fully understand the technology.

He said, “When social media came, we were afraid. Is this not going to kick us out of business? Is this not going to kick us out completely? But, I must say that eventually, we were able to scale through by virtue of the fact that most of our junior colleagues are computer literate, unlike people like us.

“We eventually used it to our advantage, so we have to thank God for that.

“When I started seeing AI, I still don’t understand it till now.”

In other news, Jide Kosoko has appealed to Nigerians to give President Bola Tinubu more time to address the country’s challenges.

The thespian said it is too early to judge the administration before its policies and reforms have had enough time to produce results.

Speaking during an interview with FeelrightnewsTV, Kosoko compared running a country to constructing a building.

He said no one can fairly decide whether a building project is successful before it is completed, adding that the same approach should apply when assessing a government.

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The actor also said President Tinubu, like every other human being, is not perfect and should not be expected to get everything right. Politics

According to him, no leader can completely avoid mistakes while governing a nation.

Kosoko further claimed that many people opposing the current administration were shaping public opinion and influencing what Nigerians, especially young people, think about the government.

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FG to end regulated gas pricing in 2028

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Nigeria is set to end regulated pricing in the domestic gas market by September 24, 2028, as the Nigerian Midstream and Downstream Petroleum Regulatory Authority targets a transition to a fully established willing-buyer, willing-seller framework.

The Chief Executive of NMDPRA, Rabiu Umar, disclosed this on Thursday at the Gas Market Maturity Workshop organised under the Decade of Gas initiative at the Petroleum Technology Development Fund, Abuja.

Umar said the transition would be based on measurable conditions that demonstrate the maturity of different segments of the gas market, in line with the provisions of the Petroleum Industry Act.

“Gas must be affordable for Nigerians while supporting President Ahmed Tinubu’s investment reforms. This transition is in line with the Nigeria decade of gas goal to become a gas-powered economy by 2030,” he stated.

He said the PIA envisaged a shift from a market largely coordinated through regulation to one driven increasingly by commercial contracts between willing buyers and willing sellers.

“Invariably, this is the first time that we have been bold enough to set a clear target for our gas market transition,” he noted.

According to Umar, the authority was targeting a 24-month period to establish the conditions required to declare the market a fully functioning willing-buyer, willing-seller market.

“The journey we are starting should lead us to a place where we should target a 24-month at best period within which we will be able to declare the market to be truly a willing-buyer, willing-seller market.”

He stressed that the transition must not be based on broad statements of intent but on clearly defined indicators, thresholds and safeguards.

Umar identified supply availability and diversity, the number and quality of buyers and sellers, access to transportation infrastructure, strength of contracts, payment reliability, delivery obligations, market information and credible price signals as key indicators of market maturity.

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The NMDPRA boss, however, said Nigeria’s domestic gas supply remained tight despite the country’s vast gas resources, stressing that infrastructure development must be matched by sufficient gas molecules to utilise the infrastructure.

“If you look at supply, for example, on the domestic side, it is still tight, no matter how you look at it. We have a lot of work to do in our infrastructure space,” he said. “The focus right now is not just delivering the infrastructure, but ensuring that we have enough molecules to fill the pipeline,” he added.

Umar specifically stressed the need to ensure that major gas infrastructure projects, including the Ajaokuta-Kaduna-Kano pipeline, had sufficient gas supply to make them commercially useful.

He said the role of the regulator would also evolve as the market developed, with greater emphasis on establishing market rules, ensuring fair access, protecting competition and monitoring market conduct.

The NMDPRA chief executive disclosed that the authority had commenced consultations on draft regulations on anti-competitive practices, aimed at translating the competition provisions of the PIA into enforceable regulatory rules.

He also called for a realistic assessment of the different segments of the Nigerian gas market, noting that they were at different stages of development.

According to him, the sequencing of the transition would require determining which market segments were ready to move first, the thresholds they must meet and the safeguards required before liberalisation.

Umar further disclosed that the authority was nearing the conclusion of the process for the issuance of gas distribution licences, with the exercise expected to be completed in the coming weeks.

He said qualified companies would be issued gas distribution licences in the fourth quarter of 2026.

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The NMDPRA boss also said the authority was working to deepen domestic utilisation of liquefied petroleum gas and liquefied natural gas, stressing that increased domestic utilisation of the country’s gas resources would be an important indicator of economic growth.

He said the government was also seeking to expand the use of compressed natural gas, while several LNG and gas-to-power projects were being developed across the country.

According to him, greater domestic gas utilisation could support power generation, reduce dependence on imports and minimise transmission losses associated with moving electricity over long distances.

He added that the authority was committed to creating a predictable, coherent and transparent regulatory environment capable of attracting long-term investment into the gas sector.

Umar said gas projects required substantial upfront investment and long-term contracts before investors and financiers could commit capital.

“For you to take an FID in a gas investment, you need to have a long-term contract,” he said, adding that the authority was willing to engage with individual projects to identify regulatory measures that could support their development.

Also speaking, the Coordinating Director of the Decade of Gas Secretariat, Ed Ubong, said Nigeria could achieve a willing-buyer, willing-seller gas market before the end of the first horizon of the Decade of Gas programme in 2030.

Ubong said the programme had identified clear markers for achieving the target, including increasing gas supply to 12.6 billion cubic feet per day by 2030.

He said 16 key infrastructure projects were expected to support the growth of the gas market, while more than 60 projects capable of creating about 15 billion cubic feet per day of gas demand had been identified on the demand side.

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He noted that a mature gas market would also require the development of a successful gas-to-power market and greater access to cooking gas.

In her speech, the President of the Nigerian Gas Association, Engr. Mrs Yetunde Taiwo, said the transition to a willing-buyer, willing-seller market must be driven by clearly defined milestones.

Taiwo said the NGA had consistently advocated for a commercially driven gas market but stressed that the transition must be properly sequenced to avoid moving either prematurely or too slowly.

“As NGA, what we would like to see really is to see those goalposts, those milestones that have been set, that makes it a realistic journey for us to say we have achieved a willing buyer, willing seller status.”

According to her, Nigeria had made significant progress in the gas industry over the past decade, but substantial work remained to be done.

She called for stronger collaboration between government, regulators and industry, with government providing clear policy direction, regulators establishing predictable rules, and industry continuing to invest, innovate and execute projects.

Taiwo said the ultimate objective should be a gas market capable of attracting investment, encouraging greater participation and delivering reliable gas to industries, businesses and consumers.

Source: punchng.com

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