Some of the foreign companies operating in Nigeria may have started quitting the country over the failure of the Federal Government to refund foreign airlines their $744 million blocked funds.

This is as some of the auxiliary companies to the affected airlines have started declaring their Nigerian staff redundant, thereby further escalating the unemployment rate in the country.

Also, Mr. Olumide Ohunayo, the Director, Zenith Travels, advised the Federal Government to allow the foreign airlines to sell their tickets in dollars to the air travellers, adding that this would reduce the challenge of foreign exchange for the airlines.

It was gathered that one of such companies to some of the foreign airlines, Storm Aviation, the organisation that is responsible for the maintenance, repair and overhaul (MRO) facilities for Emirates Airlines aircraft in Nigeria may have declared some of its staff redundant.

It was also gathered that no fewer than 20 of the company’s staff, including technical personnel, were affected by this decision.

Storm Aviation has its head office in the United Kingdom, but its Nigerian staff are being laid off by the company in Nigeria.

Engr. Abednego Galadima, the President of National Association of Aircraft Pilots and Engineers (NAAPE), in an exclusive interview with Daily Independent, confirmed the development.

According to Galadima, NAAPE was already taking up the matter with the company, saying that some of its members, especially engineers were affected by the decision to quit Nigeria.

He regretted that all efforts to resolve the blocked funds issue by the airlines had proved abortive over the months and called on the Federal Government to resolve the crisis before it degenerates further.

In a bid to ensure good negotiations for its members in Storm Aviation, Galadima said the union was already in discussion with the company.

Besides, he explained that the NAAPE leadership would next week meet with the management of Storm Aviation to continue the redundancy negotiation.

He said: “The current challenges being faced by Emirates Airlines are having an effect on our members who are either working with the airline or its contractors in Nigeria. For instance, Storm Aviation, the contractor to Emirates Airlines on MRO, has lost its contract. So, the company decided to quit Nigeria and that decision affected a number of our members working in the company.

“The decision to quit actually affected our engineers working in the MRO of Storm Aviation. They were declared redundant by the company. So, the union is taking it up with the company. We have commenced redundancy negotiation with Storm Aviation.

“Our next meeting with the company is next week and I believe the company will not drag the discussion. So that our members can get what is due to them. I cannot determine the amount of money involved at the moment. It is a collective bargaining between us and the company. It is not something that I can sit down here to give a figure to.”

Also, commenting on the issue, Mr. Olumide Ohunayo, the Director, Research, Zenith Travels Limited, lamenting that the suspension of operations into Nigeria by Emirates Airlines would have a spiral effect on the allied services in the country to the airline.

Ohunayo declared that apart from the MRO firm, other allied organisations to Emirates like hotels, catering services, car hire, security, expatriates, fuelers and other backup companies would be affected by the decision of the airline to quit the Nigerian scene.

He advised the Federal Government to take a cue from the Zimbabwean government, which allowed the foreign airlines operating into its country to sell tickets in dollars.

He explained that rather than insisting on naira sales for the airlines, dollar sales would reduce the challenge of blocked funds currently being experienced by the foreign airlines.

He also urged the Federal Government to merge the black market rate with the official rate, noting that this would reduce the challenge.

He said: “By and large, we should find a way out of this crisis. Zimbabwe was also affected and it has told the airlines to sell tickets in dollars. We either tell the airlines to sell in dollars or we try to merge the official rate with the parallel rate so that we can have a single market rate for all. The foreign airlines don’t need to stress themselves with any official rate, which is not available for them in the country.

“Also, once an airline reduces frequencies, it affects its consultants and expatriates who are either relieved of their jobs or placed on compulsory leave. It is usually a loss of revenue for everyone and once these staff are not working, it will also affect their own expenses, which dovetail into the economy.

“Even, the fuel suppliers are feeling the pains. Now, the fuel suppliers that refused to collect naira from Emirates are now collecting zero naira and zero dollars. So, we are all feeling the pains. I think the Nigerian oil companies should have collected naira, rather than insisting in dollars from Emirates and today, everybody on that value chain that gained from the services of Emirates are all down without jobs.”

Emirates Airlines had on October 29, 2022, suspended flight operations to Nigeria over its inability to repatriate funds trapped in the country.

The airline claimed that its $85 million was trapped in Nigeria, while efforts to repatriate the ticket sales funds had proved abortive.

Before the October suspension of flight services to Nigeria, the airline had in August 2022, suspended services to the country over the same challenge of trapped funds.

The airline bemoaned the failure of the government to return its funds to it despite the promises of allocation by the Central Bank of Nigeria (CBN).

Just last month, the International Air Transport Association (IATA) told the Minister of Aviation, Sen, Hadi Sirika, that the trapped funds of its members in Nigeria had grown to $744 million as at February 2023.

The figure made Nigeria the country with the highest trapped funds on the African continent.

Also, in order to weather the storm, some of the foreign airlines have reduced their frequencies into Nigeria, while others shut their lower inventories to travel agencies. (Text, excluding headline: Daily Independent)

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