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House of Reps moves to recover $7bn in aviation debts from foreign airlines

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House of Reps moves to recover $7bn in aviation debts from foreign airlines
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The House of Representatives has initiated steps to recover over $7 billion allegedly owed to the Federation Account by foreign airlines operating in Nigeria since 2023, as part of broader efforts to plug revenue leakages and strengthen public finances.

Chairman of the House Committee on Finance, Abiodun Faleke, disclosed this on Tuesday in Abuja at the flag-off of the 2023–2025 revenue monitoring review of the Federal Airports Authority of Nigeria (FAAN). Faleke, who represents Ikeja Federal Constituency of Lagos State, raised concerns over the scale of indebtedness by both foreign and domestic airlines following submissions by FAAN’s Managing Director, Mrs Olubunmi Kuku.

Kuku informed the committee that out of N25.86bn owed by airline operators in 2023, the agency recovered N8.08bn, representing 31.25 per cent, leaving an outstanding balance of N17.78bn. She did not provide figures for recoveries made in 2025.

Documents presented to the lawmakers showed that FAAN generated N191.43bn out of an approved revenue target of N292.93bn for the period under review.

He also called for detailed passenger data, including the number of airlines operating in Nigeria, flights received within the review period, and passenger manifests. The committee directed FAAN’s management to reappear with a full statement of indebtedness covering 2023 to 2025 and complete manifests of both foreign and domestic airlines operating during the period.

Airlines in Nigeria are required to remit statutory charges such as landing and parking fees, passenger service charges, terminal navigation charges and other regulatory levies to the Federal Government through FAAN and other aviation agencies. Concerns over delayed remittances and mounting debts by local and international carriers have persisted over the years, with some defunct domestic airlines reportedly leaving behind significant unpaid obligations.

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With Nigeria grappling with fiscal pressures and a widening budget deficit, lawmakers insist that plugging revenue leakages, including unpaid aviation charges, is essential to strengthening public finances and funding infrastructure without excessive debt.

Interestingly, the Aviation Minister recently disclosed that the Federal Government successfully cleared outstanding debts owed to foreign airlines,  referring to the separate issue of Nigeria’s blocked funds that prevented foreign carriers from repatriating their earnings.

That situation, which peaked at $850 million in 2023, has since been resolved, with Nigeria resolving 98% of its $850 million backlog owed to international airline operators, leaving $19 million pending verification by its Central Bank.

The current probe focuses on the opposite direction of indebtedness — money foreign and domestic airlines owe Nigeria for using airport facilities and services but have not fully remitted to government coffers.

Payments by foreign airlines are often processed through international clearing systems coordinated by global aviation bodies, which may complicate collection efforts.

The lawmakers’ aggressive posture reflects mounting pressure to identify and recover revenue as Nigeria’s debt burden continues to surge, with debt servicing consuming a significant share of government revenue and leaving little room for critical infrastructure and social services.

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