Gbajabiamila Alleges Breach of Forex Regulations by Foreign Airlines – THISDAYLIVE

•Domestic operators lament unfair treatment

Juliet Akoje in Abuja

The Speaker of the House of Representatives, Hon. Femi Gbajabiamila yesterday alleged that foreign airline operators were breaching the extant financial regulations of the Central Bank of Nigeria (CBN) on foreign exchange.

Gbajabiamila stated this during an interactive session on the blocked $700 million belonging to foreign airline operators and other concerns raised by the Airline Operators of Nigeria (AON) over capital flight, breach of Bilateral Air Service Agreement (BASA), high cost of tickets/airfare imposed on Nigerians estimated at about 50 per cent above countries such as Ghana, South Africa, among others.

Earlier in his remarks, the Chairman, United Nigeria Airline who spoke on behalf of the AON, Prof. Obiora Okonkwo, demanded for the rate at which foreign airlines charge for airfare/tickets. He alleged that foreign airlines after receiving payment at the N740/$ parallel market rate were fond of compelling the CBN to offer them forex at N447 official exchange rate.

The airline operators also accused the authorities of International Air Transport Association (IATA) of favoritism in the implementation of policy and regulations, alleging that foreign airlines had barred Nigerians from using debit cards to pay for tickets.

IATA’s Area manager West & Central Africa, Dr. Samson Fatokun, while responding to the allegations on contravention of BASA and IATA regulations with regards to the payment in dollars, alleged that the foreign airlines were demanding for the repatriation of $700 million blocked fund since 2020 to date.

The speaker on his part said: “In the meantime, we have to look for solutions. I’m also going to plead with foreign airlines to show some good faith. And what’s that good faith or how do you show that good faith?

“To open up your portals or whatever it is for business to continue as usual so that Nigerians can purchase your tickets so that the travel agents can work while this is going on.

“So, while you are doing yours there, we are doing ours here. It cannot be a one-sided thing. So, we can give ourselves some time so that once you go back to status quo, we will also at this point look into how you can repatriate or how you can get your funds. If it’s special intervention or whatever, we will find a way to deal with it.”

He added: “So, it has to be for want of a better word, symbiotic and as well do our end and you need to do your end within some good faith assurance from you.

“When Fatokun angrily said ‘it is not written in any BASA that they have to sell in dollar or not sell in dollar. It’s a CBN regulation that airlines are not expected, should not sell in dollars, it’s a CBN regulation.’

The Speaker maintained: “By self-admission, laws are actually being broken right. You did say about an hour ago that yes, under BASA law, they are not allowed to sell foreign currency.

“Okay, so it’s not a BASA regulation, it’s a Nigerian law, either way, some laws are being broken. So, the question is whether BASA or CBN law, having heard that, let me still maintain my very soft punch to the airlines, please talk to your guys out there that you are breaking the CBN regulations.

“And I will also appeal to you to revert to status-quo while we look at the matter. Once that is done, it gives us more motivation to try and assist.”

Furthermore, he noted that: “In the BASA you have different provisions and some fall under economic regulations and then we the Civil Aviation authority of each country regulates.

“So, in this particular case, selling in a particular currency, we know that all the airlines are not supposed to sell in dollars in Nigeria. They know that.

“No airline wants to sell in dollars if it has guarantee, even it will be tempted to sell in dollar if you are guaranteed that you will be able to repatriate the fund as at when it’s due. Why should they do that?

“You see, what we are experiencing is a reaction and I can say it’s reaction to the long time that this money has been blocked.

“We are talking of March 2020, now till 2022. So, after that has any operator, I don’t want to be sentimental, let’s address the issue. As an operator, as a business man, if you have your money blocked in a system for over a year or two years, will you continue to expose yourself for further money to be blocked? That is the fundamental question and that’s what the airlines are doing.”

“Since we have found ourselves in this situation and if it’s not contravening any law, part of things you might consider is to go into discussion with NCAA, fuel suppliers to know if a consideration can be made that some of this naira fund can be used in place of dollar to pay this local expenses.”

Responding to the IATA in-country Manager’s position that he cannot take decision on the matter, he said, “this you have told us is in violation of the IATA laws on charging, not allowing selling tickets in foreign exchange. We all expect you to ensure enforcement.

“You know it. it’s not enough to tell us they have to talk to their countries to decide when it is already known to us that you as a we are in a lawmaking environment and you as manager who understands the law don’t allow them to violate laws because it’s Nigeria… So please IATA, don’t choose law to enforce and not to enforce in Nigeria, please.”

Responding to the Speaker’s comment that the foreign airlines should revert to status-quo, Fatokun noted: “These are In-Country Managers, they don’t have the final say on the operations, their functions do not extend to that. They have to go back to their head office, communicate that to their head offices and then they would respond.”

The Deputy President of National Association of Nigeria Travel Agencies (NANTA), Mr. Chima Ihe while speaking on the blocked fund said: “from the travelling agencies’ side, we are pleading with the government to see how they can help the airlines to access this fund. I want to disagree with Mr. Obiora that this money can be recycled. This is operational cost, it’s not a profit which you can ask them to recycle in Nigeria or invest in Nigeria.

“However, the issue of disparity in airfares and our inability to travel agencies to right now access inventory of the airlines to issue tickets, that isa big issue. I want to ask that you help us to ask the airlines to open the inventory so that the travel agencies can access what they have and do bookings,” he added.

Also, the Regional Commercial Manager of British Airways, Mrs. Adetutu Otuyalo, while speaking, dismissed report that the foreign airlines collect dollars for payment of tickets.

She, however added: “This time two years ago, anybody that has a Nigerian card can successfully make bookings on British Airways. I can attest to that. But what has happened is that, the banks have placed a limit on the Nigerian cards. Before you could do a thousand, $2,000, $3,000 on those cards. But right now, probably you could do $100 on those cards.”

The Speaker however noted that an expanded meeting would be scheduled for Thursday, to enable the Ministers of Finance, Budget and National Planning, Aviation as well as Governor of the CBN and other regulatory agencies to take informed decision.

(0 votes) 0/5
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp
Share on email
Email
Art of Tea - Tea of the Month
[oa_social_login]
[oa_social_login]