Lawmakers question weak enforcement as major international carriers accumulate billions in unpaid airport service charges…….
The House of Representatives Committee on Finance has directed the Federal Airports Authority of Nigeria (FAAN) to recover ₦18.98 billion owed to the Federal Government by foreign airlines operating in Nigeria within two weeks.
The directive was issued on Tuesday by the committee’s chairman, James Faleke, when FAAN officials led by the Managing Director, Olubunmi Kuku, appeared before lawmakers as part of an ongoing revenue monitoring exercise.
Members of the committee expressed concern over what they described as the growing debt profile of international airlines, saying the continued accumulation of unpaid charges was unacceptable.
Faleke said the situation raises serious questions about revenue enforcement in Nigeria’s aviation sector, especially since there are clearly defined timelines for settling airport service charges.
Airlines exceeding payment deadlines
During her presentation, FAAN Managing Director Olubunmi Kuku explained that airlines operating at Nigerian airports are required to settle service charges within two weeks.
However, she disclosed that several operators have exceeded that window, with some debts stretching beyond 30 days, 90 days and in some cases over one year.
Kuku presented a breakdown of the outstanding liabilities owed by several international carriers.
Airlines listed among the debtors include Qatar Airways, Lufthansa, British Airways, Virgin Atlantic, KLM, EgyptAir, Ethiopian Airlines, Air France, Royal Air Maroc, Turkish Airlines and Africa World Airlines.
According to the FAAN boss, Qatar Airways and Lufthansa each owe roughly ₦1.5 billion, while Virgin Atlantic’s outstanding liability is about ₦1.35 billion.
She added that KLM, EgyptAir and Ethiopian Airlines each owe over ₦1 billion, while other carriers such as Air France, Royal Air Maroc, Turkish Airlines and Africa World Airlines have liabilities ranging from ₦700 million to about ₦1 billion.
Altogether, the debts owed by the listed airlines currently stand at ₦18.98 billion.
Lawmakers question enforcement
Lawmakers challenged FAAN officials over why airlines were allowed to accumulate such large debts despite the two-week payment deadline.
One member of the committee asked why operators that failed to meet their obligations within the approved timeframe were not sanctioned or prevented from continuing operations at Nigerian airports.
“Why would you allow an airline to owe beyond the two weeks allowed?” the lawmaker queried during the session.
Members also demanded to know whether airlines that eventually pay after the deadline are required to pay interest on outstanding balances, warning that persistent delays could amount to administrative negligence.
The committee further questioned why certain operators were allowed to continue operating despite debts exceeding 90 days or even one year.
FAAN cites global payment system
In response, Kuku explained that payments by international airlines are often processed through a global clearing platform operated by the International Air Transport Association (IATA).
She said the system allows airlines to process payments through a centralised global settlement platform used for ticketing and financial transactions, which can sometimes lead to delays before funds are remitted to airport authorities.
According to her, FAAN closely monitors the ageing of airline debts and begins intensified engagement once liabilities exceed 30 days.
Debts that extend beyond 90 days, she added, typically trigger stronger enforcement actions.
Kuku also revealed that FAAN has grounded some airlines in the past for failing to meet payment obligations, particularly domestic carriers that do not operate under the same global credit framework used by international airlines.
Committee demands stronger action
Despite the explanation, lawmakers insisted that stricter enforcement measures must be introduced to prevent the continued accumulation of debts.
The committee subsequently directed FAAN to submit detailed documentation and addresses of all the indebted airlines.
Lawmakers also warned that the affected operators could be invited to appear before the House if they fail to settle the outstanding liabilities within the two-week deadline.
“We need every kobo that belongs to this country,” Faleke said, stressing that airlines violating their financial obligations would be held accountable.
Charges airlines must pay
Foreign airlines operating in Nigeria are required to pay several statutory charges for the use of airport infrastructure and services provided by FAAN.
These include passenger service charges, landing fees, parking charges, aeronautical service fees, and other operational levies tied to airport operations.
Over the years, the recovery of such charges has sometimes been complicated by the global settlement structure used in the aviation industry, where payments are processed through centralised clearing platforms managed by IATA.
Under this arrangement, airlines operating across multiple countries make payments through aggregated settlement systems before funds are distributed to airport authorities and service providers.
However, Nigerian lawmakers have repeatedly warned that the global clearing process should not be used as justification for prolonged delays in settling debts owed to government agencies.
The directive issued by the Finance Committee is part of broader efforts by the National Assembly to strengthen revenue collection and block financial leakages within federal agencies, particularly in strategic sectors such as aviation.
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