The threat to sanction foreign airlines

The federal government’s warning to foreign airlines selling tickets to Nigerian passengers in dollars, in violation of the nation’s extant laws, to desist or face sanctions, is not only appropriate but quite necessary, timely and expedient.

The Minister of Aviation, Senator Hadi Sirika, issued the warning while speaking to journalists, after the weekly Federal Executive Council (FEC) meeting, which was presided over by President Muhammadu Buhari at the State House, Abuja, last week. He said the Nigerian government would not hesitate to punish identified erring international airlines selling tickets in hard currency.

He added that Nigerian Civil Aviation Authority (NCAA) had been instructed to swing into action by protecting the interest of Nigerians against reported airlines’ operations malpractices, adding that no violator, no matter how highly placed, would be spared.

According to him, findings at government’s disposal revealed that some of the airlines were refusing payment in naira and charging their ticket fares in dollars in violation of the country’s laws, while some others have blocked local travel agencies from accessing their websites for transactions, choosing to release expensive tickets.

His said: “I want to use this opportunity to say that reports are reaching us that some of the airlines are refusing to sell tickets in naira. That is a violation of our local laws, they will not be allowed. The high and the mighty among them will be sanctioned, if they’re caught doing that.

“NCAA had been directed to swing into action and once we find any airline violating this, we will definitely deal with them. Also, they blocked the travel agents from access. They also made only the expensive tickets available and so on so forth.

“Our regulators are not sleeping; we have a very vibrant Nigerian Civil Aviation Authority. Once they found any airline guilty, that airline will be dealt with because we need to protect our people. It is according to our agreements, to what we have signed and this is according to international convention.

“So going forward, they should desist from doing things that are outside of the law. They should also desist from writing us and putting things in social media. They should go through diplomatic channels if they want response from federal government.”

He disclosed that the foreign airlines made over $1.1 billion from Nigeria in 2016, when the Muhammadu Buhari administration cleared the $600 million it inherited from previous government, saying if it was retained in the country through Nigerian official airline, it would have created jobs.

Sirika recalled that the airlines remitted over $600 million to their home countries in 2016, while over $265 million has also been released this year out of about $484 million due to them.

He said the government was trying to keep the airlines happy by ensuring that their money does not pile up again, saying while the country needs their services, the airlines need the Nigerian market. The minister warned them to refrain from using the social media to press home their demands rather than resorting to the diplomatic channels.

Sirika described as irresponsible, embarrassing and lies, a report that the federal government’s air project setup had already gulped over N14.6 billion of government’s funds despite having only five per stake in the airline.

He explained that government had only spent N651 million (N352 million and N299 million) for transactional advisory services approved by the Federal Executive Council (FEC), which he said was yet to be disbursed as the consultants were yet to finish their work.

Sirika, while commenting on Nigeria Air, said, “So Nigeria Air is on course, we are going to come very soon to council for approval of the full business case. And the activity is a public private partnership, which is guided by the ICRC regulations, Infrastructure Concession Regulatory Commission.

“We have diligently followed that. And I want to seize the opportunity to say that we have been reading newspaper reports, especially those that I have maximum respect for like the Guardian, which put out a sensational article on the front page that the federal government of Nigeria has spent N14 billion on national carrier and they did nothing.

“This is absurd. This is unbecoming of a paper of that caliber to dish out lies on purpose to mislead the public. The entire amount of money spent on national carrier is around the transaction advisory services. And we came here with a memo with approval, which we dished out to the press as to the quantum of money to be spent. It was N352 million in today’s rate and another contract of N299 million. That’s it,” he said.

We commend the move by the aviation minister to protect Nigeria’s interest, her local currency – the naira, her statutes, sovereignty and territorial integrity. It needs be emphasised that Nigeria is not a banana republic but a democratic country governed by domestic laws and international statutes and conventions.

Consequently, our partners, friends and investors, foreign airlines inclusive, operating within the country’s shores must do so within the ambit of the law or be appropriately sanctioned. The fact that the naira is weak against the US dollars and other international currencies does not justify its being undermined or rejected by those transacting business in Nigeria; the naira is a legal tender and must be seen as such.