Reasons For Emirates stop flights to Nigeria in September.

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Emirates to suspend Nigeria flights from September over trapped funds, Due to stuck funds, Emirates will stop flights to Nigeria in September, Reasons For Emirates stop flights to Nigeria in September.

Importers and investors who wish to move their profits outside of the country will have a more difficult time obtaining access to foreign currency as a direct consequence of this development.

Even though oil accounts for almost 90 percent of Nigeria’s export earnings, the government has been having trouble maintaining production levels due to thefts from pipelines and a general lack of investment over the years.

According to a study that came out in June from the Multinational Air Transport Association (MATA), Nigeria was keeping profits from foreign airlines that had bases in the country amounting to $450 million.

Emirates said that it had failed to make any progress in its efforts to establish contact with the relevant authorities in order to request urgent help from such authorities.

Emirates stated in a statement that “we have taken the painful decision to cease all flights to and from Nigeria, effective 1 September 2022)” This decision was made “to avoid future losses and impact on our operating expenses that continue to mount in the market,” Emirates said. “We have taken the painful decision to cease all flights to and from Nigeria.”

A phone placed to the Federal Ministry of Aviation requesting comment was not immediately returned by a spokesperson from that department.

Emirates sent a letter to the government earlier this month stating that it was considering suspending service to Lagos because it was unable to retrieve $85 million that had been stranded in the nation since July and the amount had been increasing by $10 million each month. The letter stated that Emirates was considering suspending service to Lagos because it was unable to retrieve the money.

The airline company added that it would reevaluate its position if there was a change in the status of the frozen funds during the next several days.

According to what was said, customers will be aided in arranging alternate travel plans whenever that was possible.

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On Thursday, Emirates Airlines announced that beginning September 1, 2022, it would no longer serve Nigeria.

In a statement, the UAE’s national airline said that it had made the choice because it was unable to bring back foreign currency it had earned in Nigeria.

Three weeks ago, airlines pleaded with Aviation Minister Hadi Sirika to allow the return of $85 million in earnings. There is a foreign exchange crisis in Nigeria, which has led to a depreciation of the Naira versus the dollar.

Malami’s $418 million Paris Club refund action was “fraudulent and self-serving,” according to the NGF.

Emirates airline’s Divisional Senior Vice-President (DSVP), International Affairs, Sheik Majid Al Mualla, wrote to the minister about its plans to reduce its operations in Nigeria beginning on August 15, 2022.

It announced that the number of flights departing from and arriving at Lagos’s Murtala Muhammed International Airport (MMIA) will be cut in half, from 11 to 7.

Emirates claimed it “had no choice but to take this measure” to prevent further losses caused by Nigeria’s blocking of the airline’s payments.

According to a report from July 2022, “Emirates has US$ 85 million in money waiting to be repatriated from Nigeria. With 11 weekly flights to Lagos and 5 to Abuja, the airline has accumulated monthly running expenditures of more over $US 10 million.

The airline stated it cannot continue to operate at the current level “in the face of rising losses, especially in the harsh post-COVID-19 context” and that the money is needed immediately to cover operating costs and keep its services to Nigeria commercially viable.

Furthermore, “Emirates did try to stem the losses by proposing to pay for gasoline in Nigeria in Nairas, which would have decreased one portion of our continuing expenditures,” but this request was rebuffed by the supplier.

The accumulated earnings of Emirates need the transfer of foreign cash into Nigeria to fund the company’s ongoing operations there. Our income is out of reach and not even accruing interest on credit.

This is not a choice we have made lightly, Your Excellency. To be sure, we’ve done everything we could to coordinate with the CBN to resolve this problem. After our SVP’s meeting with the CBN’s Deputy Governor in May, he wrote to the Governor directly the following June, but still heard nothing back.

To improve FX allocation, Emirates had meetings with its bank in Nigeria and worked with IATA, but with mixed results. We’ve put in a lot of time and effort, yet things just keep getting worse. We are in the unenviable situation of having to reduce flights to try to stem the tide of future losses.

It also requested help from the Nigerian government in order to alleviate its financial restriction, which is seen as the airline’s most pressing problem.

Reasons For Emirates stop flights to Nigeria in September.

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