ABUJA, Nigeria (VOICE OF NAIJA)-The House of Representatives Committee on Finance on Tuesday instructed the Federal Airports Authority of Nigeria to recover the N18.98bn owed to the Federal Government by foreign airlines operating in the country within two weeks.
The directive was issued by the Committee Chairman, James Faleke, when FAAN officials, led by the Managing Director, Olubunmi Kuku, appeared before the panel as part of its ongoing revenue monitoring exercise.
Lawmakers expressed concern over what they described as the rising debt profile of international airlines operating in Nigeria, calling the situation unacceptable.
Faleke noted that the accumulation of such liabilities, despite clearly defined payment timelines for airport service charges, raised serious questions about revenue enforcement in the aviation sector.
Earlier, the FAAN Managing Director explained that airlines operating at Nigerian airports are required to settle their service charges within two weeks.
She revealed, however, that several operators had exceeded that window, with some liabilities stretching beyond 30 days, 90 days, and, in some cases, over a year.
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Kuku also presented a breakdown of outstanding debts owed by international carriers.
The airlines listed included Qatar Airways, Lufthansa, British Airways, Virgin Atlantic, KLM, EgyptAir, Ethiopian Airlines, Air France, Royal Air Maroc, Turkish Airlines, and Africa World Airlines.
She explained that the figures reflect charges for services provided by FAAN and collected through the International Air Transport Association settlement platform.
According to Kuku, Qatar Airways currently owes about N1.5bn, while Lufthansa’s outstanding liability is also approximately N1.5bn. Virgin Atlantic owes about N1.35bn, and KLM, EgyptAir, and Ethiopian Airlines each owe over N1bn across varying categories of current and outstanding payments.
Other carriers, including Air France, Royal Air Maroc, Turkish Airlines, and Africa World Airlines, have liabilities ranging between N700m and N1bn.
Kuku told the committee that the total outstanding amount owed by the airlines currently stands at N18.98bn. Lawmakers questioned why airlines were allowed to accumulate such debts despite the two-week payment requirement.
A committee member asked FAAN why operators who fail to meet obligations within the approved timeframe were not sanctioned or barred from operating at Nigerian airports.
“Why would you allow an airline to owe beyond the two weeks allowed?” the lawmaker asked.
The committee also inquired whether airlines settling payments after the deadline are required to pay interest on outstanding sums and warned that persistent delays could amount to negligence.
Members further questioned why certain airlines were permitted to continue operations despite debts exceeding 90 days or even a year, stressing that such practices could undermine revenue enforcement.
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In response, Kuku explained that international airline payments are often processed through a global clearing system operated by IATA, which can result in settlement delays.
She noted that the system allows airlines to make payments via a centralised platform used globally for aviation ticketing and financial settlements.
Kuku said FAAN monitors the ageing of airline debts closely and intensifies engagement with operators once liabilities exceed 30 days, while debts over 90 days attract stronger enforcement measures.
She added that FAAN has occasionally grounded airlines that fail to meet payment obligations, particularly domestic operators not subject to the global credit structure used by international carriers.
Despite the explanation, lawmakers insisted on stricter enforcement mechanisms to prevent continued debt accumulation.
The committee directed FAAN to provide detailed addresses and documentation for all airlines listed as debtors and warned that operators failing to clear their debts within the stipulated period would be invited to appear before the House to explain the outstanding liabilities.
“We need every kobo that belongs to this country,” Faleke said, warning that airlines found violating financial obligations would be held accountable.
Foreign airlines operating in Nigeria are required to pay statutory charges for using airport facilities and services provided by FAAN, including passenger service charges, landing and parking fees, aeronautical service charges, and other operational levies.
The recovery of such charges has sometimes been complicated by the global settlement structure used in the aviation industry, where airlines process payments through the International Air Transport Association clearing system.
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Under this system, airlines operating in multiple jurisdictions settle certain charges through centralised platforms that aggregate payments before disbursing them to airport authorities and service providers.
However, Nigerian lawmakers have repeatedly stressed that this system should not justify prolonged delays in settling debts owed to government agencies.
The latest directive by the House Committee on Finance is part of a broader effort by the National Assembly to strengthen revenue collection by federal agencies and block leakages in government income streams, particularly in sectors critical to national economic growth.