The House of Representatives Committee on Finance on Tuesday directed the Federal Airports Authority of Nigeria to recover N18.98bn owed to the Federal Government by foreign airlines operating in the country within two weeks. As reported by Attractions Media, the directive came during a revenue monitoring session at the National Assembly.
James Abiodun Faleke, Chairman of the Committee, issued the order when FAAN officials appeared before the panel. “We need every kobo that belongs to this country,” Faleke stated. He warned that failure to recover the debts would attract stricter enforcement actions.
Olubunmi Kuku, Managing Director of FAAN, led the agency’s delegation to the hearing. She explained that airlines operating in Nigerian airports must settle service charges within two weeks. However, she noted that several operators exceeded this window.
Kuku disclosed that some debts stretched beyond 30 days, 90 days and, in certain cases, more than one year. She presented a detailed breakdown of outstanding liabilities to the committee members.
The FAAN managing director listed several international carriers among the defaulters. Qatar Airways owes approximately N1.5bn, while Lufthansa carries a similar outstanding liability of about N1.5bn.
Virgin Atlantic owes roughly N1.35bn, according to Kuku. She added that KLM, EgyptAir and Ethiopian Airlines each owe over N1bn. Other airlines with significant debts include Air France, Royal Air Maroc, Turkish Airlines and Africa World Airlines, with liabilities ranging between N700m and N1bn.
Committee members expressed dissatisfaction with the debt accumulation. One lawmaker asked FAAN why defaulting airlines were not sanctioned or barred from operating. “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 settle after the deadline pay interest on outstanding sums. Furthermore, lawmakers questioned why carriers continued operations despite carrying debts exceeding 90 days or one year.
Kuku explained that international airline payments are processed through the International Air Transport Association settlement platform. She stated that this global clearing system sometimes causes settlement delays.
According to her, FAAN monitors debt ageing and intensifies engagement once liabilities exceed 30 days. She noted that debts above 90 days attract stronger enforcement measures. She also disclosed that FAAN has grounded domestic airlines for non-payment, though international carriers operate under different credit structures.
The committee directed FAAN to provide detailed addresses and documentation for all listed airline debtors. Faleke indicated that operators failing to clear debts within the two-week window would be summoned to appear before the House.
“We cannot allow foreign airlines to take advantage of Nigeria’s system,” Faleke stated. He emphasized that accountability and enforcement must be applied strictly.
