The country of Nigeria hopes that flights from Dubai-based Emirates will resume soon. Nigerian President Muhammadu Buhari called for the airline's return last week and reportedly directed the Central Bank of Nigeria to produce more foreign currency available to Emirates.
The move comes after Emirates suspended flights to the West
African country last year, citing the lack of progress in repatriating funds
due to the country's severe dollar shortage. The airline reportedly negotiated
in several meetings with representatives from the Nigerian aviation ministry to
discover solutions to release the funds.
Buhari posted on Twitter earlier this week that while he
spoke to United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan to
offer condolences on the death of his mother-in-law, he also informed him about
the effect of suspended flights.
"I also called for a resumption of suspended Nigerian
operations of Emirates Airlines," Buhari said. "I assured Sheikh
Mohamed that the fund repatriation issues that led to the suspension are
receiving appropriate attention. We will make additional foreign exchange
available for affected airlines."
The relations between the UAE and Nigeria are essential,
according to Buhari.
"Nigeria and the UAE have enjoyed excellent and
beneficial relations for many years, including at the highest political levels.
We can and must continue to iron out whatever issues arise between us," he
said.
Buhari also mentioned that his country is mindful of the
consular issues relating to the behavior of some Nigerians in the UAE. He said
Nigeria will ensure the application of necessary sanctions, through the
appropriate judicial process, against anyone identified to have committed
criminal acts in the UAE.
Emirates halted Nigerian flights twice last year to protest
against its ticket revenue being withheld. Following several unsuccessful
meetings with the government of Nigeria, the halt occurred indefinitely.
According to ch-aviation, Emirates had proposed a plan to
progressively release at least 80% of its funds by the end of October 2022.
When this did not follow through, the carrier pulled its routes, claiming its
Nigerian operations were running at a loss and were no longer commercially
viable.
On September 11th, Emirates reinstated its flights to
Nigeria after suspending them on September 1st. The carrier demanded the payout
of $85 million of its revenue after the Central Bank of Nigeria released $265
million to international airlines to settle outstanding ticket sales.
According to the International Air Transport Association,
Nigeria topped the list of culprits worldwide by withholding $551 million of
airlines' funds, which Nigerian authorities reportedly engaged with airlines to
find solutions.
Nigeria and the UAE have enjoyed excellent and beneficial relations for many years, including at the highest political levels. We can and must continue to iron out whatever issues arise between us.
— Muhammadu Buhari (@MBuhari) February 14, 2023
Repatriation issues first arose in March 2020 when the
demand for foreign currency in the country outpaced its supply. Banks
throughout Nigeria could not provide currency repatriations, while the
country's federal government implemented a currency change. According to
ch-aviation, Buhari authorized the central bank to redesign major Nigerian bank
notes, but it caused a cash shortfall.
Earlier this month, the Nigerian President said he was aware
of the cash shortages and hardship faced by people and businesses on account of
the Naira redesign. Violent protests have also erupted in Nigeria over the
scarcity of cash. This week, protesters reportedly attacked automated teller
machines and blocked roads in three cities.
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