Air Peace Chairman Reveals Delays in Accessing CBN Funds and Challenges Facing Indigenous Airlines

Mr. Allen Onyema, Chairman of Air Peace, has expressed concern about the delays in accessing the $14 million held by the Central Bank of Nigeria (CBN). The funds, initially paid in naira, were intended for the maintenance of aircraft that underwent various degrees of maintenance overseas. Onyema revealed that despite six months passing since the deposit, the airline has yet to receive the money. He emphasized the challenges facing indigenous airlines in accessing foreign exchange and called for a conducive environment and government support to boost the growth of Nigerian carriers.

Key Points

1. Delayed CBN Funds: Air Peace paid the equivalent of $14 million in naira to the CBN to cover the costs of aircraft maintenance carried out abroad. However, despite the funds being needed for these maintenance payments, they have not been disbursed by the CBN. Onyema mentioned that the money was borrowed from banks at a 26% interest rate, highlighting the urgency of accessing these funds. In total, Air Peace expects to receive about $24 million from the CBN.
2. Foreign Exchange Challenges: The Chairman of Air Peace raised concerns about indigenous airlines’ difficulties in accessing foreign exchange. This situation has been exacerbated by the lack of prompt disbursement of funds by the CBN.
3. Need for Government Support: Onyema emphasized the need for a conducive environment and government support to enable Nigerian airlines to thrive. He pointed out that with the availability of these funds and support, Nigerian carriers have the capacity to perform exceptionally well.

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1. Transit Facilities and Policy Barriers: Onyema also highlighted the challenges posed by the absence of transit facilities for passengers at international airports in Nigeria. This deficiency affects the performance of airlines operating regional and international routes. Policies of the Nigeria Immigration Service (NIS) and the Nigeria Customs Service (NCS) have created additional obstacles for indigenous airlines, particularly when it comes to handling transit passengers.
2. Regional and International Expansion: Air Peace operates to destinations in West and Central Africa and seeks to bring passengers from neighboring countries to its hub in Lagos for onward international flights. However, policy barriers, lack of transit facilities, and related immigration and customs procedures hinder this potential.
3. Single African Air Transport Market (SAATM): Onyema emphasized the importance of upgrading Nigerian airports to include transit facilities and adopting immigration policies that recognize transit passengers. This will enable Nigerian airlines to compete effectively and take advantage of the Single African Air Transport Market (SAATM).
4. Foreign Carrier Operator Permits: Air Peace has secured Foreign Carrier Operator Permits, which allow it to operate flights to Europe and the UK. This achievement followed stringent audits to ensure compliance with high safety standards, capacity, and standard conditions.

Conclusion

Air Peace’s Chairman’s remarks shed light on the challenges facing indigenous airlines in Nigeria, from delayed funds held by the CBN to policy barriers affecting regional and international expansion. The call for government support and a conducive environment for growth is crucial for the success of Nigerian carriers and their ability to compete effectively in the aviation industry.

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