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Emirates airline suspends operations in Nigeria over $85m trapped funds

 

Eyewitness reporter 

From September 1st, 2022, Emirates airlines will cease to operate flight operations in and out of Nigeria.

The beleaguered airline said the operational environment in Nigeria is suffocating as its $85 million is still trapped in the country.
In addition, the airline said the unavailability of foreign exchange has complicated an already bad situation.
In a press statement made available to newsmen, the airline said it will stop its operation indefinitely starting from September, 1st 2022 till after it was able to repatriate its trapped fund.

It could be recalled that Emirate airline had cut down on its weekly number of flights into Lagos from 11 to seven over US$85 million of funds awaiting repatriation from Nigeria.

The airline said the figure has been rising by more than $US10 million every month, as the ongoing operational costs of our 11 weekly flights to Lagos and 5 to Abuja continue to accumulate.

They, however, said that the trapped funds are urgently needed to meet operational costs and maintain the commercial viability of their services to Nigeria.

“We simply cannot continue to operate at the current level in the face of mounting losses, especially in the challenging post-COVID-19 climate. Emirates did try to stem the losses by proposing to pay for fuel in Nigeria in Naira, which would have at least reduced one element of our ongoing costs, however, this request was denied by the supplier,” the airline had said.

However, with no considerable improvement and headway in repatriating the trapped fund, the airline, on Thursday, announced the suspension of its operations in Nigeria indefinitely.

The statement reads, “Emirates has tried every avenue to address our ongoing challenges in repatriating funds from Nigeria, and we have made considerable efforts to initiate dialogue with the relevant authorities for their urgent intervention to help find a viable solution.

“Regrettably there has been no progress. Therefore, Emirates has taken the difficult decision to suspend all flights to and from Nigeria, effective 1st September 2022, to limit further losses and impact on our operational costs that continue to accumulate in the market.

“We sincerely regret the inconvenience caused to our customers, however, the circumstances are beyond our control at this stage. We will be working to help impacted customers make alternative travel arrangements wherever possible.”

“Should there be any positive developments in the coming days regarding Emirates’ blocked funds in Nigeria, we will of course re-evaluate our decision. We remain keen to serve Nigeria, and our operations provide much-needed connectivity for Nigerian travelers, providing access to trade and tourism opportunities to Dubai, and to our broader network of over 130 destinations.”

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Aviation

From 6k to 50k: The economic insensitivity of arbitrary hike in parking rate at MM2

Olutayo Irantiola

Recently, the parking rate at the Multi-storey Car Park at the Murtala Muhammed Airport Terminal 2 (MMA2), operated by Bi-Courtney Aviation Services Limited (BASL) and managed by Balosh, was arbitrarily increased.

Overnight parking, which used to be six thousand naira (N6,000) only, was increased to fifty thousand naira (N50,000) only.
What is the mathematical rationale for this type of increase?

In 2021, Balosh, the company managing the toll system within the airport, was engaged by the Lagos State Government and Lagos State University Teaching Hospital (LASUTH), and it almost resorted into a crisis within the hospital premises because one would not be able to explain the rationale for having a patient in the hospital, and one would be charged for car park.Nigerians are unable to commute by road, train, or even the waterways.

 Despite the rising cost of all modes of commuting, one is now confronted with an unjustified increase in airport parking rates.

With the rising cost of house rent cum accommodation in Lagos, people have moved to various suburbs of Lagos.

 When they have a reason to travel, the most cost-effective option is to get their vehicle to the airport, park it, travel to their destination, and return to their vehicle to get home within 3-4 days.
 When it was N6,000, everyone assumed that it was affordable and safe to keep their cars at the airport, similar to what happens at the jetties and train station.

The rising cost of JetA1 has been attributed to the rising cost of air ticket which is almost beyond the reach of an average Nigerian; the rising cost of PMS (Petrol) at this time when Iran and US war is ongoing has made people abandoned their cars while app hailing taxi services are ‘cutting’ people’s heads off while the regular airport taxi call unfriendly rates to the already overtaxed Nigerian that has not gotten an increase in salary despite the galloping inflation.Further rationalising this increase, it seems that the airport authority is now competing with the airlines- if one can afford a N300,000 return ticket, then one can also afford a N150,000 for a three-day parking at the airport.

This is not a fair deal for Nigerian travellers who are working hard to travel by air, given the imminent fear of what could go wrong on the road.

Can one liken the increase to a collaboration between the taxi unions and the airport to rip people off of their hard-earned money?

 What this means is that for anyone who cannot afford parking at the airport, you will be forced to use a taxi that is ‘seemingly’ above the law, which is in connivance with the private operators of the airport.
The enforcement team at MM2 would never clamp taxis, but they aim at private vehicles that are forced to use the car park, regardless of how many minutes one wants to use at the airport.
Beyond the exorbitant rate introduced by the airport operators for the car park, they are also on the case of on-demand, multi-category delivery platform riders who pick up food items from restaurants within the airport.
This wanton drive for revenue will kill more businesses than build a thriving economy.
Beyond the few excuses given by the operators of the car park and the airport, Nigerians need organisations that are empathetic and can feel the pulse of the people.
With the current rate, it means anyone without a driver cannot live a simple life of fueling his car at over a thousand naira per litre, drive to the airport, keep his car and return joyfully to Lagos with the intent of driving home.

This is another way of destroying the middle class in Nigeria. If you engage a friend, sibling or acquaintance without a license to drive your car away from the airport, and such a person runs into the VIO or FRSC, the problem becomes complicated.

It is expedient for the airport operators to devise a strategy to identify actual travellers, which should be based solely on their boarding passes and means of identification.

For those whose boarding passes and tally slips given at the car park entrance can be matched, they should be given a concession.

 They can deal decisively with other vehicles parked without justification. But making the car park rate unaffordable to the common man should not be allowed to stay.

There is no moral justification for overnight parking, let alone moving from 6,000 to 50,000!

I will want to implore the Honourable Minister of Aviation and Aerospace Development of Nigeria, Mr. Festus Keyamo, SAN; Managing Director of the Federal Airports Authority of Nigeria(FAAN), Mrs Olubunmi Kuku and other government agencies to please look into the matter and reduce the hardship being experienced by Nigerian travellers who need to park at MM2.

Olutayo Irantiola is a PR Consultant and Public Affairs analyst based in Lagos, Nigeria

 

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Aviation

FAAN resumes toll collection at Airports, adopts hybrid payment method 

Gloria Odion, Reporter
The Federal Airports Authority of Nigeria(FAAN) have resumed collection of toll at all its toll plazas located at the airports in the country, including Murtalar Mohammed International Airport, Lagos.
The toll suspension arose from the chaos which the new cashless payment method introduced by FAAN recently generated which resulted in long queues of motorists at these facilities.
This development has raised public outcry which necessitated the intervention of President Bola Ahmed Tinubu who directed the suspension of the cashless payment system.
However, the Minister of Aviation and Aerospace Development, Festus Keyamo, has directed the resumption of toll collection at all these plazas.
In a press statement by his Special Adviser on Media and Communications, Tunde Moshood, the Minister declared that a hybrid access gate payment should be adopted by FAAN at the toll gates located at the Airports in the country.
“Following the earlier suspension of the full cashless Access Gate payment system as directed by the President of the Federal Republic of Nigeria, President Bola Ahmed Tinubu due to the traffic gridlock it created, the Minister of Aviation and Aerospace Development met with officials of the Federal Airports Authority of Nigeria (FAAN) and senior officials of the Ministry.
“After reviewing the initial implementation and the operational challenges observed, the following decisions were reached:
” The Ministry has resolved to engage concessionaires in order to introduce a fully automated or electronic system at all access gates at our airports in order to fully and eventually eliminate cash payments.
” In the meantime, a hybrid payment system that accommodates both cash and card payments will resume at all airport access gates with effect from Friday, March 13, 2026.
” Motorists who already possess FAAN Go Cashless Cards may continue to use them until further notice.
“Other electronic payment options, including POS terminals and other approved digital channels, will also remain available.
“Members of the public and road users are encouraged to obtain and use the FAAN Go Cashless Card as the Authority continues to enhance and fully optimise the cashless payment system.
“This directive restores the previous access  gate payment arrangement whilst the Ministry continues to work on the fully automated or electronic system” the statement concluded.
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Aviation

Tension de-escalates at Lagos Airport as FAAN, Cargo agents reach truce over new tariff

Funso OLOJO, Editor
The brewing crisis over the new cargo tariff introduced by the Federal Airports Authority of Nigeria( FAAN) may have been de- escalated  as the Airport Authority and the aggrieved Customs Licensed Cargo Agents have reached a compromise over the controversial tariff.
It could be recalled the new tariff regime of N20 per kilogram introduced by FAAN has sparked off a row between the airport authority and the cargo agents who vowed to resist the increase from the initial N7 per kilogram.
Tension has heightened when the two warring parties stuck to their gun with FAAN issuing a quit notice to the residents cargo agents and a threat to demolish their associations’ Secretariat.
However sanity prevailed after about one week of stand- off between the two gladiators as they both met for dialogue on Monday February 9th, 2026.
According to the statement issued by FAAN, the two sides have reached an agreement on the proposed review of cargo port charges.
“The agreement was achieved at a stakeholders meeting held on Monday February 9th, 2026,at the MMIA Terminal 2 conference room chaired by the Director of Cargo Development and Services, Mr Lekan Thomas.
“After constructive deliberation, both parties agreed on a revised port charges of N15.00 per kilogram, representing a compromise from the earlier proposed N20.00kg and an upward review of the existing #N7.00kg.
“The outcome reflects the spirit of dialogue, partnership and  shared responsibility.
“FAAN believes the resolution will enhance ease of doing business at MMIA while supporting sustainable airport and cargo infrastructure development.
“The Authority reaffirms it’s commitment to continuous stakeholders engagement,the SEDI(safety, efficiency, development and innovation) principles and the ongoing modernization of cargo terminal facilities.
“FAAN appreciates the cooperation of the customs Licensed cargo Agents and looks forward to sustained collaboration in advancing Nigeria’s air cargo sector” the Airport Authority stated.
Dr Segun Musa, the Vice- President of the National Association of Government Approved Freight Forwarders (NAGAFF) and one of the leaders of the warring associations at the Cargo Airport, confirmed the truce.
” Yes, we met yesterday, Monday (February 9th 2026) and we agreed on N15 per Kilogram.
“We agreed with FAAN in the interest of the economy, so that work could go on.
“The situation is now normalized” Musa declared.
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