Trapped funds: Air transport workers raise alarm over looming job losses

Air transport workers under the auspices of National Union of Air Transport Employees, (NUATE) have raised concerns over the looming unemployment that awaits employees who work with foreign airlines in Nigeria, if the issue of trapped funds is not addressed as soon as possible.

These concerns are coming at a time when foreign airlines have reduced frequencies into Nigeria and Emirates Airlines has disclosed plans to suspend operations over its trapped funds in Nigeria.

The International Air Transport Association last week disclosed that the trapped fund has since grown to $464 million in July, urging the government to prioritize the release of the funds.

In a letter addressed to Hadi Sirika, the minister of aviation and signed by Ocheme Aba, general secretary of the union stated that the trapped funds have become a threat to the employment and livelihood of thousands of workers of foreign airlines should there result in further significant reductions, or outright shutdown, of operations of these airlines.

Aba also mentioned that if the situation is not addressed soon, there would be concomitant losses — not excluding jobs — that would accrue to several service providers who are dependent on, almost entirely, on the foreign airlines – ground handling, inflight catering, logistics, aviation security, etc. This, unfortunately, is already visible from the reductions of operations that have come into effect in the past weeks resulting from the impasse.

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He noted that the union is very mindful of current difficulties being experienced by the State with regard to the acute shortage of foreign exchange earnings and recognise that there are no straight fixes available.

The general secretary however stated that in view of the apparent calamity that will surely befall the nation if the situation is not ameliorated quickly enough, “we urge you to prevail on the Federal Government to take extraordinary measures to resolve the quagmire. Such a measure could include the use of crude oil swap to defray the backlog in the first instance,” he said.

The union pleaded with the minister not to be cowered by the enormity of this, and other, problems presently mitigating the sector’s projected growth.

“We offer our hand of support, whatever that counts for, at this very trying time. We equally make ourselves available for any stakeholders meeting convened to address the matter. And we are hopeful that God helping us shall overcome,” Aba said.