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Airlines, others owe Aviation Agencies N32.4b – NCAA

By on August 22, 2011

Aviation agencies are owed N32.4 billion by airlines, oil marketers, ground handling companies, and government agencies, which account in part for the poor facilities at the airports and in turn endanger the lives of fliers.

The debt had mounted this high by April 30 and would have shot further if figures beyond that date were available.

Sources close to service providers and the Nigerian Civil Aviation Authority (NCAA) warned that the debt, if not redeemed soon, would cripple the ability to keep services running.

Lack of maintenance of infrastructure may cause Nigeria to lose its Category 1 FAA Safety Status.

Aviation Minister Stella Oduah has warned debtor airlines of the dire consequences of withholding the payment of their bills, giving them 30 days to enter into an agreement on the settlement of the debts or risk being grounded.

The most hard hit by the three aviation agencies is the Federal Airports Authority of Nigeria (FAAN), owed N22.96 billion, which include $1,389,897,629.60.

The FAAN had early last year put debt owed it at N17 billion, but that has now jumped by N5.96 billion.

The debts arose from non payment of rents by airlines, retail shop owners at terminals, duty free shops, handling, oil and gas and other allied services.

Top on the list of the debtors is Arik Airline whose debt profile in FAAN records indicate that it is owing N1,965,475,207.64 from its operations in and out of the Murtala Mohammed International Airport, Ikeja, Lagos and N797,435,128.34 at the General Aviation Terminal (GAT),Ikeja, Lagos totalling N2.762 billion.

Next in the long list of the debtors is the British carrier-Virgin Atlantic which owes FAAN N618.66million, Nigerian Aviation Handling Company(NAHCO) N239.612million, oil & gas companies N232.82million, banking/financial services N44.8million, duty free shops N24.2milliom, Aerocontractors N241.8million, Nigerian Air Force N17 million, Associated Airlines N41.8million, Chanchangi Airlines N393.56million , IRS Airlines N206.21million, Overland N12.62million, Air Nigeria N253.66million,Ethihad N7.2million and Dana Air N124.55million.

Other debtors include 86 dormant airlines which are indebted to FAAN to the tune of N440.326 million which are unlikely to be recovered while various government agencies totalling 31 owed N651.568million and dormant concessionaires N191.476million.

Out of the total indebtedness by various industry clients, the NCAA is owed a total of N5.363billion with Arik Air also on top of the debtors list with a bill of N2.428 billion.

Other debtors on NCAA list include – Aerocontractors N698.042million, Associated Airlines N26.9million, Chanchangi Airlines N383.8 million, Dana Airlines N487.6million, IRS N648million, Overland N11.5million and Bristow N4.38 million.

Sources said majority of the debts owed NCAA arose from the 5% Ticket Sales Tax  already embedded in the air fares of passengers and 5% Cargo Sales Tax and are expected to be paid to the government through the regulatory agency.