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.
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.
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.
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.
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