Reps move to recover $7bn aviation debt from foreign airlines

The House of Representatives has initiated steps to recover over $7bn allegedly owed to the Federation Account by foreign airlines operating in Nigeria since 2023.

Chairman of the House Committee on Finance, Abiodun Faleke, disclosed this on Tuesday in Abuja at the flag-off of the 2023–2025 revenue monitoring review of the Federal Airports Authority of Nigeria (FAAN).

Faleke, who represents Ikeja Federal Constituency of Lagos State, raised concerns over the scale of indebtedness by both foreign and domestic airlines following submissions by FAAN’s Managing Director, Mrs Olubunmi Kuku.

Kuku informed the committee that out of N25.86bn owed by airline operators in 2023, the agency recovered N8.08bn, representing 31.25 per cent, leaving an outstanding balance of N17.78bn. She did not provide figures for recoveries made in 2025.

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

The FAAN boss explained that the debts were owed by both foreign and domestic airlines, including some that have ceased operations. She added that certain revenues from foreign airlines are remitted through the International Air Transport Association (IATA), a process she said has contributed to payment delays.

Lawmakers, however, expressed dissatisfaction with the explanations, citing Nigeria’s rising public debt and continued foreign borrowing to fund the national budget. They also questioned the agency’s accounting framework and pointed to inconsistencies in its revenue performance figures.

Faleke stated that when President Bola Tinubu assumed office, over $7bn was owed by international carriers. He demanded a comprehensive record of debts for 2023, 2024 and 2025, including details of defaulting airlines.

He also called for detailed passenger data, including the number of airlines operating in Nigeria, flights received within the review period, and passenger manifests.

The committee directed FAAN’s management to reappear with a full statement of indebtedness covering 2023 to 2025 and complete manifests of both foreign and domestic airlines operating during the period.

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

Concerns over delayed remittances and mounting debts by local and international carriers have persisted over the years, with some defunct domestic airlines reportedly leaving behind significant unpaid obligations. Payments by foreign airlines are often processed through international clearing systems coordinated by global aviation bodies.

The renewed scrutiny comes amid intensified revenue oversight by the House Committee on Finance, which has launched a broader monitoring exercise targeting government agencies to improve remittances into the Federation Account and reduce reliance on borrowing.

With Nigeria grappling with fiscal pressures and a widening budget deficit, lawmakers insist that plugging revenue leakages, including unpaid aviation charges, is essential to strengthening public finances and funding infrastructure without excessive debt.