• Monday, April 22, 2024
businessday logo

BusinessDay

NAHCO chairman calls on government to release airlines’ trapped funds

NAHCO chairman calls on government to release airlines’ trapped funds

Seinde Fadeni, the Chairman of the Board of Nigerian Aviation Handling Company Plc, has called on the Federal Government to release funds belonging to foreign airlines trapped in the vaults of the Central Bank of Nigeria (CBN).

Fadeni who was addressing the 42nd Annual General Meeting (AGM) of the Company in Lagos Friday said it was just fair that those who had worked hard for their money should be allowed access to the money worked for.

According to him, the Federal Government “should speedily resolve the issue of funds belonging to the airlines. It is just fair that monies legitimately earned should be released to the operators who earn such funds.”

Continuing, the NAHCO Chairman said, “NAHCO stands with the airlines and calls on the Federal Government and the Central Bank of Nigeria to release these funds. This would give the government more credibility as well as increase foreign investors’ confidence in our nation.”

Read also: African Airlines cargo volumes drop by 6.2% in March

Global airlines body, International Air Transport Association, (IATA) discloses that as at April 2023, airlines trapped funds in Nigeria amounted to $802m.

This is about half the total amount of trapped airlines fund in Africa which stood at $1.6billion within the same period. Referring to these funds interchangeably as both trapped and blocked, IATA said Africa’s Central Bank vaults holds 66 percent of such funds.

Fadeni pointed out that government should be an enabler, providing the needed environment for legitimate businesses to thrive.

Sharing his views on the incoming Tinubu administration, he believes that there is a burst of new optimism in the country arising out of fresh hope that a new regime brings with it.

“NAHCO shares in this hope as also expressed by majority of local and international businesses. We are poised to take advantage of business – enhancing policies of the in-coming administration, he stated.”

Indranil Gupta, the group managing director/CEO of the Company, said the Company achieved quite a number of milestones in the Year 2022 including the ISAGO recertification of its operations in Lagos, Kano and Abuja

He said, “This certification is a testament of our commitment to safety and our adherence to highest industry standards. It also positions us to better serve our clients, particularly international airlines who require the best of ground handlers who are ISAGO – certified.

NAHCO, the first ground handling service provider in Nigeria West Africa’s, declared a Profit Before Tax of N3.842billion for the year end 2022. This is an increase of 315.4 percent over the N924.86 declared for the same period in 2021.