Reps move to recover $7bn from foreign airlines

 The House of Representatives has launched efforts to recover more than $7 billion allegedly owed to the Federation Account by foreign airlines operating in the country since 2023.

The move was announced by the Chairman of the House Committee on Finance, Hon. Abiodun Faleke, during the flag-off of the review of the 2023–2025 revenue monitoring exercise for the Federal Airports Authority of Nigeria (FAAN) in Abuja on Tuesday.

Faleke expressed serious concern over the scale of indebtedness by foreign carriers and other entities, describing it as a significant revenue leakage that has deprived the national treasury of vital funds. He emphasized that the committee would work closely with relevant agencies to trace, verify, and pursue full recovery of these outstanding amounts.

The $7 billion figure reportedly stems from accumulated debts related to various charges, including landing fees, parking fees, passenger service charges, and other aeronautical and non-aeronautical revenues collected or due through operations at Nigerian airports. These funds are meant to accrue to the Federation Account under Nigeria's revenue-sharing framework.

The announcement comes against the backdrop of ongoing efforts by Nigerian authorities to strengthen fiscal discipline and plug loopholes in public revenue generation. FAAN, the agency responsible for managing and maintaining airports, has been under scrutiny for revenue collection efficiency, with the current review aimed at identifying shortfalls and improving monitoring mechanisms for the specified period.

Faleke highlighted the importance of this initiative in bolstering government finances amid economic pressures, stating that no entity domestic or foreign should operate in Nigeria without fulfilling its financial obligations to the state. He called for transparency and cooperation from all stakeholders, including the airlines, to facilitate a smooth reconciliation process.

The development has drawn attention in aviation circles, where foreign airlines have historically raised concerns about trapped funds in Nigeria due to foreign exchange shortages and repatriation difficulties. In previous years, trapped ticket revenues—funds from local sales that airlines struggled to convert and remit abroad—peaked at around $850 million, prompting threats of service suspensions and interventions by bodies like the International Air Transport Association (IATA).

However, the current focus by the House appears reversed: rather than airlines seeking repatriation of their earnings, the legislature is targeting what it views as unpaid dues owed by these carriers to Nigerian authorities. Details on the specific airlines involved or the breakdown of the $7 billion remain limited at this stage, with the committee expected to provide more clarity as the recovery process advances.

The initiative aligns with the reforms in the aviation sector, including FAAN's push toward cashless policies at airports to curb leakages and enhance accountability. Officials hope these measures, combined with legislative oversight, will help maximize revenue from the sector, which plays a key role in Nigeria's economy through tourism, trade, and connectivity.

As the revenue review progresses, the House Committee on Finance has signaled its readiness to summon relevant parties for further engagements, potentially including FAAN management, airline representatives, and regulatory bodies like the Nigerian Civil Aviation Authority (NCAA).