Nigerian Banks Refuse to Repatriate Over $600-Million

Emirates, the world’s fourth-largest airline and one of the United Arab Emirates’ two flag-carriers, has announced it will suspend all flight operations to Nigeria—Africa’s richest and most populous nation—on 01 September 2022. The move follows numerous attempts to recover $85-million of more than $600-million in Emirates earnings being held by the regime of Nigerian President Muhammadu Buhari.

The airline explained in a statement: “Emirates has taken the difficult decision to suspend all flights to and from Nigeria, effective 01 September 2022, to limit further losses and impact on our operational costs that continue to accumulate in the market.” The carrier added: “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.”

Emirates apologized to customers for inconveniences the suspension is apt to cause, and committed to helping travelers find alternate transportation options whenever possible.

In July 2022, Emirates cut over 44% of its flights to Lagos, Nigeria’s former capital and largest city. The measure occasioned the airline’s first attempt to mitigate worsening revenue losses, and heralded its imminent inability to sufficiently fund large-scale operations in Nigeria against unrealized profits.

In a July letter to Nigerian Minister of Aviation Hadi Sitika, Emirates asserted that not only was its revenue being held captive by the Nigerian state, but that the amount of wrongfully un-repatriated monies had been climbing by $10-million-per-month.

In response to Emirates’ overtures to recoup its monies, Nigeria’s International Air Transport Association leveled a series of specious allegations against the air-carrier, contending that Emirates—in cahoots with unnamed additional international airlines—has selectively targeted Nigerian travelers with higher fares for purpose of maximizing profits.

Nigeria’s IATA further alleged that [purportedly] rising air travel costs will ultimately precipitate the collapse of Nigeria’s economy. The association claims that by withholding Emirates’ profits, Nigeria has stabilized its citizens’ ability to travel internationally.

“[The] Average Nigerian traveler is paying the price, as airfares in Nigeria have increased; so, it is not helping the average Nigerian to travel,” IATA of Nigeria averred. “The price [airfare] is two to three times higher. It will come to a time Nigerians will not be able to travel. It will come to a time it will collapse Nigeria’s economy.”

Emirates has magnanimously pledged to review its decision and possibly resume service to Nigeria once progress has been made in repatriating its frozen funds.

FMI: www.emirates.com