The aviation sector in Nigeria is facing a crisis due to massive foreign withdrawals, unpaid debts, and inadequate government repayments. Foreign airlines have repatriated $1.76 billion in the first and second quarters of 2023, with the Balance of Payment account receiving a total credit of $19.39 million from airline travel. However, passengers spent ₦779.61 billion on tickets, while cargo and other expenses amounted to $10.22 billion and ₦5.65 billion, respectively.

The crisis persists, with foreign airlines expressing dissatisfaction over the government's failure to settle outstanding debts. Nigeria leads the chart in terms of airlines' blocked funds, with $792 million. In an attempt to address the issue, the Federal Government recently released $61 million to foreign airlines, which was criticized by the airlines as grossly inadequate.

As of July 2022, foreign airlines had approximately $464 million trapped in Nigeria. By November 2023, around 90% of the $783 million owed remained unpaid, and this figure has surged to nearly $800 million as of January 2024. This failure to settle debts resulted in the suspension of operations by two major airlines, Emirates and Etihad, leading to a significant 20% decline in international passenger traffic for the country.

The Nigeria Civil Aviation Authority (NCAA) has implemented a 'no pay, no service' sanction on defaulting airlines, focusing on strict measures against debtors and adhering to regulatory frameworks. The aviation industry faces challenges not only from outstanding debts but also from illicit activities, with the NCAA aiming to enforce consumer protection regulations and ensure timely care for passengers.

Nigeria is never a good place to invest

They "foreign airlines" should not repatriates their money again because economy is shambles?