Use FX concession to improve operations, NCAA charges airline operators

The Nigerian Civil Aviation Authority (NCAA) on Sunday advised Airline operators to operates with renewed vigour having secured a special sectoral Foreign Exchange (Forex) allocation in the Secondary Market Intervention Sales (SMIS).

Captain Muhtar Usman, Director-General of NCAA, gave the advise in a statement on Sunday in Lagos, that the forex concession was to further engender market confidence, ensure access to forex by the airlines and sustain the integrity of the Nigerian Inter-bank forex market

The forex concession was recently granted to the airlines by the Central Bank of Nigeria (CBN) as a result of the intervention of the Minister of State for Aviation, Sen. Hadi Sirika.

The statement said: “This is to further engender market confidence, ensure access to forex by the airlines and sustain the integrity of the Nigerian Inter-bank forex market.

“The CBN has resolved pursuant to the minister’s show of concern to intervene in the inter-bank forex market through forward settlement.

“For clarity, the SMIS retail is an important one-off exercise dedicated to the clearance of the backlog of matured forex obligation for airlines’’.

According to the statement, this success is another step ahead in seamless operations in the aviation industry.

“It is expected that this is a major window for those airlines that had earlier ceased their operations to recommence in earnest.

“Therefore, with this intervention comes a landmark incentive for both local and foreign operators to carry out safe, secure and lucrative operations in Nigeria.

“In addition, all scheduled and mandatory checks which are done in the Diasporas will be undertaken with this leverage at a reduced cost.

“The NCAA therefore, expects the foreign operators to carry out their operations with renewed vigour,’’ the statement said.

It added that all problems associated with repatriation were now a foregone conclusion.

It advised all airline operators to take full advantage of this laudable gesture of the Federal Government of Nigeria and adhere strictly to the provisions of the Bilateral Air Services Agreement (BASA) with Nigeria.

Usman had earlier led a delegation of Airline Operators of Nigeria (AON) to meet with the Ministers of State for Aviation, Finance and their Petroleum counterparts, including the CBN Governor.

As a result of the meeting, Sirika was able to extricate for the foreign airlines, 50 per cent clearance of their forex obligations.

The Press Statement

FG GRANTS AIRLINES FOREX CONCESSION

The Honourable Minister of State for Aviation, Honourable Hadi Sirika, has finally secured a special sectorial allocation of forex for Airline Operators in the Secondary Market Intervention Sales (SMIS) for Airline operators.

This is to further engender market confidence, ensure access to forex by the airlines and sustain the integrity of the Nigerian Inter-bank forex market.

The Central Bank of Nigeria (CBN) has resolved pursuant to the Minister’s show of concern to intervene in the inter-bank forex market through forward settlement.

For clarity, the Special Secondary Market Intervention Sales (SMIS) – Retail is an important one-off exercise dedicated to the clearance of the backlog of matured forex obligation for airlines.

It is however, worthy to note that other sectors were similarly availed priority in the inter-bank forex market. These are Raw Materials and machineries for manufacturing companies and Agricultural chemicals.

It will be recalled that the Director-General, Nigerian Civil Aviation Authority (NCAA) had earlier led a delegation of Airline Operators of Nigeria (AON) to hold meetings with the Ministers of State for Aviation, Finance and their Petroleum counterparts including the CBN Governor.

As a result of the meeting, Honourable Sirika was able to extricate for the foreign airlines 50 per cent clearance of their forex obligations. This present success is another step ahead in seamless operations in the aviation industry.

It is expected that this is a major window for those airlines who had earlier ceased their operations to recommence in earnest.

Therefore, with this intervention comes a landmark incentive for both local and foreign operators to carry out safe, secure and lucrative operations in Nigeria.

In addition, all scheduled and mandatory checks which are done in the diasporas will be undertaken with this leverage at a reduced cost.

The Director General of the Regulatory Authority, NCAA, therefore expects the foreign operators to carry out their operations with renewed vigour.

According to him, all problems associated with repatriation is now a foregone conclusion. He advised all Airline Operators to take full advantage of this laudable gesture of the Federal Government of Nigeria and adhere strictly to the provisions of the Bilateral Air Services (BASA) with Nigeria.

SAM ADUROGBOYE,

GM (PUBLIC RELATIONS),

NCAA.