Business
Emirates to reduce operation in Nigeria over trapped funds
The Emirates Airline has revealed that it will reduce its operations in Nigeria from next month over its inability to repatriate an estimated $85m.
The airline made this known in a letter dated July 22, 2022 and addressed to the Minister of Aviation, Hadi Sirika.
Emirates said the planned reductions in its operations in Nigeria would start from August 15, 2022.
Part of the letter read, “We have had no choice but to take this action, to mitigate the continued losses Emirates is experiencing as a result of funds being blocked in Nigeria.
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“As of July 2022, Emirates has US$85 million of funds awaiting repatriation from Nigeria. This 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.
“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.
“This means that not only are Emirates’ revenues accumulating, we also have to send hard currency into Nigeria to sustain our own operation. Meanwhile, our revenues are out of reach, and not even earning credit interest.”
