During a recent plenary session, the Nigerian Senate called on President Muhammadu Buhari to direct the Central Bank of Nigeria (CBN) to release the blocked funds belonging to airlines that operate in the country.
The call came in response to a motion presented by Senator Bala Na’allah, which highlighted the detrimental impact of the unavailability of funds on the airline industry. Senator Na’allah made it known that the consequences of these blocked funds have triggered the unavailability of affordable airline tickets in Nigeria.
The protracted retention of funds as well as taxes and inflation erodes the profitability of airlines, resulting in increased ticket prices. This situation has a major impact on the accessibility of air travel for Nigerians, especially those with limited financial resources.
The senator explained further that the inability of airlines to get their funds has dire consequences like airlines’ closure and subsequent relocation to adjoining countries. According to him, this not only exacerbates the unemployment problem in the country but also stalls the growth and sustainability of the local aviation industry.
By releasing these funds, airlines in Nigeria will have resources to back their operations, invest in infrastructure, and offer affordable air travel options for Nigerians. This will enhance the accessibility of air transportation and contribute to economic growth and job creation in the sector.
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