Nigeria’s House of Representatives has given the Federal Airports Authority of Nigeria (FAAN) two weeks to recover more than NGN18.98 billion naira (USD13.6 million) that foreign airlines owe to the government, according to multiple news reports.

The ultimatum was issued by the House Committee on Finance during a revenue monitoring session covering the 2023-2025 fiscal years, aimed at strengthening accountability among government agencies, as reported by newspapers such as Leadership, Vanguard, Daily Trust, and Punch.

They reported that the committee chairman, James Abiodun Faleke, had expressed concern that several international carriers had allegedly accumulated large debts for airport services despite a two-week payment deadline.

FAAN CEO Olubunmi Oluwaseun Kuku told lawmakers that the outstanding debt reflects service charges processed through the IATA Clearing House settlement platform and includes both current and overdue balances.

According to Kuku, airlines with significant outstanding payments include Qatar Airways and Lufthansa, each owing about NGN1.5 billion (USD1.1 million) and Virgin Atlantic with about NGN1.35 billion (USD970,000). KLM Royal Dutch Airlines, EgyptAir, and Ethiopian Airlines allegedly each owe more than NGN1 billion (USD718,000) in various charges.

Other airlines listed among the debtors include British Airways, Air France, Royal Air Maroc, Turkish Airlines, and Africa World Airlines, with debts ranging from NGN700 million (USD502,000) to NGN1 billion.

ch-aviation has reached out to IATA and each of the airlines for comment. The latest IATA ICH membership list includes all the above carriers, while only two from Nigeria, Air Peace and Overland Airways, are included.

A Virgin Atlantic spokesperson said: "We’re working closely with our partners at FAAN to ensure any outstanding payments are resolved in line with agreed processes."

Two-week window

According to the reports, the Nigerian lawmakers questioned why airlines were allowed to exceed the two-week payment window, with some debts reportedly exceeding 30 days, 90 days, or more than a year. They also asked whether penalties or interest were imposed on overdue payments and why airlines with longstanding debts are still allowed to operate in Nigeria.

Kuku said that international airline payments are processed through the global clearing system managed by IATA, which can sometimes delay settlements. She added that FAAN monitors outstanding balances and increases engagement with airlines once debts exceed 30 days, with stricter measures after 90 days.

She also claimed that FAAN had grounded some airlines that failed to meet payment obligations, particularly domestic carriers that do not operate under the same global credit arrangements.

Despite the explanation, the airport authority was told to recover the debts within two weeks and submit documentation on all debtor airlines. The committee warned that airlines could be summoned to appear before the House if the debts remain unpaid. "We need every kobo that belongs to this country," Faleke said.

Cleared funds

The situation reverses the conundrum international airlines serving Nigeria faced in recent years when the country topped the list of states worldwide blocking the repatriation of airline revenues in US dollars. At its peak in June 2023, Nigeria's blocked funds amounted to USD850 million, resulting in some airlines reducing their operations. However, in 2024, IATA reported that the blocked funds had been returned through constructive engagement and phased repatriation.