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Home Economy

Reps move to recover $7bn airline debt to federation

Quadri Olaitan by Quadri Olaitan
March 3, 2026
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Airline

House of Representatives begins $7bn airline debt recovery drive, probing unpaid foreign airline charges owed to Nigeria’s Federation Account

The House of Representatives of Nigeria has commenced steps to recover more than $7bn allegedly owed to the Federation Account by foreign airlines operating in the country, signalling a renewed push for fiscal accountability within the aviation sector.

Also read: IATA warns blocked airline funds threaten global connectivity

Chairman of the House Committee on Finance, Abiodun Faleke, disclosed the development on Tuesday during the flag-off of the review of the 2023 to 2025 revenue monitoring exercise of the Federal Airports Authority of Nigeria in Abuja.

Faleke, who represents Ikeja Federal Constituency in Lagos State, expressed deep concern over mounting indebtedness by both foreign and domestic airline operators following submissions by FAAN Managing Director, Mrs Olubunmi Kuku.

According to Kuku, airline operators owed FAAN N25.86bn in 2023, out of which only N8.08bn, representing 31.25 per cent, was recovered, leaving an outstanding balance of N17.78bn. She did not provide updated recovery figures for 2025.

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Documents presented to lawmakers further revealed that FAAN generated N191.43bn out of an approved revenue target of N292.93bn within the review period, reflecting a performance level of 65.35 per cent and a shortfall of N101.5bn.

Kuku explained that the liabilities involved both active and moribund carriers, adding that some payments from foreign airlines are processed through the International Air Transport Association, a system she said contributes to delays in remittances.

Lawmakers, however, voiced dissatisfaction with the explanations, particularly amid Nigeria’s rising debt profile and continued reliance on foreign borrowing to finance national budgets.

Faleke stated that records available to the committee indicated that over $7bn remained unpaid by international carriers when President Bola Ahmed Tinubu assumed office.

“We want a full record of all your debts in 2023, 2024, and 2025. When the call is made, those who are owing, we want to know them,” Faleke said, stressing that accurate passenger and flight data would be critical to verifying outstanding obligations.

The committee subsequently directed FAAN management to reappear with comprehensive documentation detailing airline indebtedness, including manifests showing flights and passenger volumes recorded during the period under review.

Airlines operating in Nigeria are required to remit statutory charges such as landing and parking fees, passenger service charges, terminal navigation fees and other regulatory levies through FAAN and related aviation agencies.

Concerns over delayed remittances have persisted for years, with several defunct domestic carriers reportedly leaving behind significant unpaid liabilities, while foreign airlines’ payments often pass through international clearing frameworks.

The $7bn Airline Debt Recovery initiative forms part of a broader revenue monitoring exercise recently intensified by the House Committee on Finance to plug leakages, boost government earnings and reduce dependence on borrowing.

Also read: Turkish Airlines secures positive three year golf deal

Lawmakers maintained that recovering outstanding aviation revenues remains a decisive step towards strengthening public finances and supporting infrastructure development without worsening the nation’s debt burden.

Quadri Olaitan
Quadri Olaitan

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