Emmanuel OchayiDr Allen Onyema, chairman of Air Peace, has lamented that the Central Bank of Nigeria (CBN) is withholding $14 million, which was meant for the maintenance of the airline’s aircraft. The funds were deposited in naira six months ago with delay in the release causing financial strain on the airline.
Onyema, in an interview with journalists yesterday, said, “We ferried 15 of our aircraft for maintenance overseas. We needed dollars to pay for the maintenance; so, we paid naira to the Central Bank of Nigeria (CBN), which is equivalent to $14 million needed to pay and bring the aircraft back to Nigeria after the checks. We have not received this money. This is money we borrowed at a 26% interest rate, but six months have passed, and we are yet to get this money from CBN. The total debt we are expected to be paid to us from the CBN is $24 million. This is why we said that what we need is a conducive environment, and Nigerian airlines will blossom.”
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The delay in accessing these funds from the CBN has forced the airline to borrow at high-interest rates from banks, increasing its financial burden.
Onyema also highlighted the challenges faced by indigenous airlines in Nigeria, such as the difficulties in accessing foreign exchange. He stressed that if the CBN releases the owed funds and offers support to Nigerian airlines, they have the capacity to thrive.
Another issue Onyema raised was the lack of transit facilities for passengers at international airports like the Murtala Muhammed International Airport (MMIA) in Lagos and the Nnamdi Azikiwe International Airport (NAIA) in Abuja.
This absence of transit facilities hampers the performance of airlines, especially those operating regional and international routes.
His words, “Currently, immigration treats them like other passengers whose final destination is Nigeria and are expected to obtain a visa and follow other procedures like other passengers who are arriving in Nigeria. What is usually obtained is that as long as the passengers are not leaving the airport, they do not need a visa because they are in transit.
Onyema stressed the need for Nigerian airports to include transit facilities and called for a change in immigration policies to recognize and facilitate transit passengers. He cited the example of the Kotoka International Airport in Accra, which has such a transit facility and allows Air Peace to take passengers from neighboring countries to farther destinations.
He explained that instead of a national carrier, the aviation sector in Nigeria needs investment in airport infrastructure. He believed that with government support, Nigerian airlines could provide the necessary capacity.
The chairman also revealed that Air Peace had secured the necessary permits, including a Foreign Carrier Operator Permit (FCOP) and a Third Country Operator Permit (TCO-UK), to operate flights to the United Kingdom.
These permits reflect the airline’s commitment to maintaining high safety standards and meeting capacity requirements for international flights.
However, the delay in the release of the funds kept with the CBN is a concern for Air Peace, whose Onyema added that it conducive environment and government support is essential for the growth of Nigerian airlines.
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