Emirates Pulls Flights From Nigeria Due To Stuck Revenue

As a result of government officials’ refusal to allow Emirates to repatriate $85 million in revenues from Nigeria, Emirates will reduce the number of flights it flies to the West African country.

In recent months, Nigeria has refused to pay international airlines more than $850 million in repatriation because of a severe shortage of US dollars. Nigeria, despite the “great efforts” of the likes of Emirates, wants to keep as much money as possible and refuses to release it.

Last week, the airline’s senior vice president for international relations, Sheikh Majid Al Mualla, wrote to Nigeria’s minister of aviation: “It is with a heavy heart that I write to advise you of anticipated reductions in Emirates operation to Nigeria.”

According to the letter, Emirates would have to reduce flights between Dubai and Lagos from 11 to 7 per week starting August 15, 2022. In order to reduce Emirates’ ongoing losses due to monies being frozen in Nigeria, “we had no choice but to take this move.”

Sheikh Al Mualla alleges the Nigerian government has already withheld $85 million in revenues, increasing by $10 million every month.

We must secure these resources quickly to keep providing services to Nigeria at a profit and cover our operating expenses. In the difficult post-COVID-19 scenario, we can’t operate at our existing level with rising losses.

When it comes to operating in Nigeria, the airline is said to rely on flying in cash to pay for services. According to Al Mualla, they tried to pay for petrol in Nigeria’s Naria money, but the supplier wanted US Dollars instead.

According to Al Mualla, Emirates and the International Air Transport Association (IATA) have failed to come up with a solution, and things are getting worse.

Several African countries, including Algeria, Ethiopia, and Zimbabwe, have also refused to allow the repatriation of cash earned by foreign airlines because the government refused to pay the airlines’ fees.

Emirates has had a rocky relationship with Nigeria in recent years, despite the importance of the Nigerian market to its operations. Due to increased Covid testing requirements imposed on Nigerian travellers during the pandemic, Emirates could not fly to the country for several months.

A tit-for-tat slot conflict forced Emirates to halt service to Nigeria late last year temporarily.