House of Representatives Committee on Finance has given the Federal Airports Authority of Nigeria (FAAN) two weeks to recover N18.98 billion owed to the Federal Government by foreign airlines operating in the country.
The directive was issued on Tuesday by the Committee Chairman, Rep. James Faleke, during an interactive session with FAAN officials led by the Managing Director, Mrs Olubunmi Kuku, as part of the committee’s ongoing revenue monitoring exercise.
Lawmakers expressed displeasure over what they described as the growing debt profile of international airlines, insisting that the situation was unacceptable in the face of government’s revenue needs.
Faleke said the accumulation of liabilities, despite clearly defined payment timelines for airport service charges, raised serious concerns about enforcement and compliance in the aviation sector.
In her presentation, Kuku explained that airlines using Nigerian airports are required to settle their service charges within two weeks.
She, however, disclosed that several operators had exceeded this window, with some liabilities ageing beyond 30 days, 90 days and, in certain instances, more than a year.
She put the total outstanding indebtedness of foreign airlines to FAAN at N18.98 billion.
According to her, the debts relate to statutory charges for services provided by FAAN and are largely processed through the International Air Transport Association’s (IATA) global settlement platform.
Airlines listed in the debt profile include Qatar Airways, Lufthansa, British Airways, Virgin Atlantic, KLM, EgyptAir, Ethiopian Airlines, Air France, Royal Air Maroc, Turkish Airlines and Africa World Airlines. She said Qatar Airways and Lufthansa each owe about N1.5 billion, Virgin Atlantic about N1.35 billion, while KLM, EgyptAir and Ethiopian Airlines each owe over N1 billion.
Other carriers, including Air France, Royal Air Maroc, Turkish Airlines and Africa World Airlines, carry liabilities ranging between N700 million and N1 billion.
Committee members queried why FAAN allowed the debts to accumulate beyond the stipulated two-week payment period.
One lawmaker asked why airlines that defaulted were neither sanctioned nor barred from operating at Nigerian airports, and whether late payments attracted interest charges.
Members warned that persistent delays in settling obligations could amount to negligence and undermine the integrity of government revenue collection.
Responding, Kuku said international airline payments often pass through IATA’s central clearing system used globally for ticketing and financial settlements, which can create delays beyond FAAN’s direct control.
She stressed that FAAN closely monitors ageing of debts, steps up engagements with airlines once liabilities exceed 30 days and applies stronger enforcement measures when debts cross 90 days.
She added that the authority had, in some instances, grounded defaulting airlines, particularly domestic operators that do not operate under the same global credit structure as foreign carriers.
Unsatisfied, the committee directed FAAN to furnish it with detailed addresses and documentation of all indebted airlines and warned that the affected carriers would be invited to appear before the House if they failed to clear their debts within the two-week deadline. “We need every kobo that belongs to this country,” Faleke said, adding that any airline found violating its financial obligations to Nigeria would be held accountable.
Foreign airlines operating in Nigeria are required to pay passenger service charges, landing and parking fees, aeronautical charges and other operational levies for the use of airport facilities and services.
Lawmakers have repeatedly argued that while the IATA settlement structure is global, it should not be used as justification for prolonged delays in remitting monies owed to Nigerian agencies.
The latest directive by the House Committee on Finance forms part of wider National Assembly efforts to strengthen revenue collection, block leakages and shore up government income, especially from strategic sectors such as aviation.
