Dubai-based airline Emirates Airline announced that it will suspend all flights effective September 1, 2022 because it couldn’t repatriate $85m of money still in the country.
Long-haul carrier Emirates will suspend flights to Nigeria from next month over an inability to repatriate funds from Africa’s most populous nation, the Dubai-based airline has said.
Thursday’s announcement highlights the problems faced by international carriers flying to Nigeria, which is one the largest markets in Africa.
Due to a lack of dollars, the African country has limited access to foreign currency to imports and to investors looking to repatriate their earnings. Nigeria receives approximately 90 percent of its foreign money from oil, but is struggling with production due to pipeline thefts and years of underinvestment.
The International Air Transport Association (IATA) stated in June that Nigeria withheld $450m from international carriers operating in Nigeria.
Emirates claimed that it has not made any progress in its attempts to engage with the relevant authorities to urgently intervene.
“Therefore, Emirates has taken the difficult decision to suspend all flights to and from Nigeria, effective 1 September 2022, to limit further losses and impact on our operational costs that continue to accumulate in the market,” it said in a statement.
A spokesperson for the Federal Ministry of Aviation in Nigeria didn’t immediately respond to a request.
Emirates had sent a letter to the government saying it could cut flights to Lagos, Nigeria’s largest city, this month because it could not get $85m stuck in the country as of July, a figure that had been rising by $10m per month.
Emirates stated that it would reconsider its decision if the situation regarding the blocked funds changes in the coming days.
It was also stated that customers affected would be assisted in making alternative travel arrangements whenever possible.
In 2016, there were similar restrictions on foreign exchange and several airlines cut flights. United Airlines and Iberia both stopped flying to Nigeria. United launched a Nigerian service again last year, but Iberia is yet to return.
Due to rising jet fuel prices, many domestic airlines had to suspend flights in May.
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