LAGOS, Aug 1 (Reuters) – Dubai’s Emirates plans to cut back flights to Nigeria this month resulting from troubles repatriating income from Africa’s most populous nation, in accordance with a letter despatched to the federal government and seen by Reuters.
Emirates plans to chop the variety of flights to Lagos to seven from 11 by mid-August, the letter mentioned, including it had $85 million caught within the nation as of July, a determine that had been rising by $10 million per thirty days.
Trade observers say extra airways might observe go well with if the central financial institution, which restricts entry to international forex to sort out a extreme greenback scarcity, didn’t tackle airways’ points.
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“We now have no alternative however to take this motion, to mitigate the continued losses Emirates is experiencing because of funds being blocked in Nigeria,” it mentioned in a letter to aviation minister Hadi Sirika dated July 22.
A spokesperson for the aviation ministry didn’t reply to a request for remark.
Emirates, in an emailed assertion, mentioned bother repatriating funds was impacting its business viability in Nigeria and that efforts to unravel the issue had been met with restricted success.
Emirates didn’t remark instantly on the letter and mentioned it hoped to proceed a full schedule.
Final week, the naira’s black market worth versus the greenback dropped to a document low. The central financial institution mentioned it was frightened concerning the naira’s worth. learn extra
Nigeria, which will get roughly 90% of its international trade from oil, is struggling to supply resulting from pipeline theft and years of underinvestment. learn extra
Amid related international trade restrictions in 2016, a number of airways diminished flights and carriers Iberia and United Airways stopped flying to Nigeria altogether. The latter re-launched a Nigerian service final 12 months, however Iberia has but to return.
The Worldwide Air Transport Affiliation mentioned in June Nigeria was withholding a whole lot of tens of millions in income that worldwide carriers working within the nation had earned. learn extra
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Further reporting by Camillus Eboh in Abuja and Maha El Dahan in Dubai
Modifying by Mark Potter
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