The Federal Airports Authority of Nigeria (FAAN) has been given two weeks ultimatum to recover N18.98 billion owed by foreign airlines operating in Nigeria
The House of Representatives Committee on Finance has directed the Federal Airports Authority of Nigeria (FAAN) to recover over N18.98 billion owed by foreign airlines operating in the country within two weeks.
Chairman of the committee, Rep. James Abiodun Faleke, issued the directive when officials of FAAN, led by its Managing Director, Olubunmi Kuku, appeared before the panel as part of its ongoing revenue monitoring exercise on Tuesday.
During the session, lawmakers expressed concern over the growing debt profile of several international airlines, describing the situation as unacceptable and a threat to government revenue.
Faleke noted that it was troubling that foreign airlines continue to accumulate debts for airport services despite clear payment timelines.
Earlier in her presentation, the FAAN Managing Director explained that airlines are expected to settle service charges within two weeks. However, she disclosed that several operators have exceeded the deadline, with some liabilities stretching beyond 30 days, 90 days and, in certain cases, more than one year.
Kuku presented a breakdown of the debts owed by various international airlines, listing operators such as Qatar Airways, Lufthansa, British Airways, Virgin Atlantic, KLM, EgyptAir, Ethiopian Airlines, Air France, Royal Air Maroc, Turkish Airlines and Africa World Airlines among those with outstanding payments.
According to her, the figures represent service charges collected through the International Air Transport Association (IATA) settlement platform.
She explained that the debt profile remains dynamic because airline liabilities are often maintained as “rolling balances,” meaning new charges may accumulate while older debts are being cleared.
Kuku stated that Qatar Airways currently owes about N1.5 billion, while Lufthansa’s outstanding debt is also estimated at about N1.5 billion. She added that Virgin Atlantic owes approximately N1.35 billion.
She further noted that KLM, EgyptAir and Ethiopian Airlines each owe more than N1 billion in varying categories of current and outstanding payments.
Other airlines listed in the debt profile include Air France, Royal Air Maroc, Turkish Airlines and Africa World Airlines, with debts ranging between N700 million and N1 billion.
The FAAN boss told lawmakers that the total outstanding debt from airlines presently stands at N18.98 billion.
Lawmakers, however, questioned why the authority allowed airlines to accumulate such liabilities despite the stipulated two-week payment window.
A member of the committee queried why airlines that fail to settle their charges within the required timeframe are not sanctioned or grounded from operating in Nigerian airports.
“Why would you allow an airline to owe beyond the two weeks allowed?” the lawmaker asked.
The committee also demanded to know whether airlines that eventually settle their obligations after the deadline are required to pay interest, warning that continued delays could amount to negligence.
Members further questioned why certain airlines were allowed to continue operating despite carrying debts that exceeded 90 days or even one year, stressing that such practices could undermine revenue enforcement.
Responding, Kuku explained that international airline payments are processed through a global clearing system managed by the International Air Transport Association (IATA), which sometimes results in settlement delays.
She said the system allows airlines to make payments through a centralised financial platform widely used in global aviation ticketing and settlement.
According to her, FAAN closely monitors the ageing of debts and begins stricter engagement with airlines once liabilities exceed 30 days, while debts above 90 days attract more serious attention.
She also revealed that FAAN has, in some cases, grounded airlines that failed to meet payment obligations, particularly among domestic operators that do not operate under the same global credit structures as international carriers.
Despite the explanation, lawmakers insisted that stronger enforcement mechanisms must be put in place to prevent the accumulation of large debts.
The committee subsequently directed FAAN to provide detailed addresses and documentation for all airlines listed as debtors, warning that the operators would be invited to appear before the House to explain the outstanding liabilities if the debts are not cleared.
Lawmakers stressed that Nigeria must ensure the full recovery of revenues owed to the government, noting that the aviation sector remains a critical component of national economic growth.
“We need every kobo that belongs to this country,” Rep. Faleke said, warning that airlines found violating their financial obligations will be held accountable.
