{"id":206820,"date":"2022-07-30T09:01:13","date_gmt":"2022-07-30T08:01:13","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=206820"},"modified":"2022-07-30T09:01:13","modified_gmt":"2022-07-30T08:01:13","slug":"emirates-to-reduce-flights-to-nigeria-over-unpaid-85m-forex-scarcity","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2022\/07\/30\/emirates-to-reduce-flights-to-nigeria-over-unpaid-85m-forex-scarcity\/","title":{"rendered":"Emirates to reduce flights to Nigeria over unpaid $85m, forex scarcity"},"content":{"rendered":"<p>The Emirates has said it will reduce its weekly number of flights into Lagos, Nigeria from 11 to 7 due to unpaid $85million trapped in the country and unavailability of forex.<\/p>\n<p>Emirates said save for solutions to its challenges in Nigeria are found immediately, its decision will become effective on August 15, 2022.<\/p>\n<p>In a letter by the Divisional Senior Vice President (DSVP) of Emirates, Sheikh Majid Al Mualla to Nigeria\u2019s Minister of Aviation, Senator Hadi Sirika, the airline said it has been difficult to reclaim its trapped fund and the money was needed to run its operations.<\/p>\n<p>The airline, which said the fund has been rising by over $10million every month, as its operational cost continues to accumulate, said its proposal to pay for aviation fuel in local currency was also rebuffed by fuel suppliers in Nigeria.<\/p>\n<p>The letter reads, \u201cIt is with a heavy heart that I write to inform you of planned reductions in Emirates\u2019 operations to Nigeria. With effect from 15 August 2022, <a href=\"https:\/\/www.withinnigeria.com\/news\/2022\/04\/14\/emirates-airline-to-introduce-metaverse-nfts\/\" target=\"_blank\" rel=\"noopener\">Emirates<\/a> will be forced to reduce flights from Dubai to Lagos from 11 per week to 7 per week.<\/p>\n<p>\u201cWe have had no choice but to take this action, to mitigate the continued losses Emirates is experiencing as a result of funds being blocked in Nigeria.<\/p>\n<p>\u201cAs of July 2022, Emirates has US$85 million of funds awaiting repatriation from Nigeria. This figure has been rising by more than $US10 million every month, as the ongoing operational costs of our 11 weekly flights to Lagos and 5 to Abuja continue to accumulate.<\/p>\n<p>\u201cThese funds are urgently needed to meet our operational costs and maintain the commercial viability of our services to Nigeria. We simply cannot continue to operate at the current level in the face of mounting losses, especially in the challenging post COVID-19 climate.<\/p>\n<p>\u201cEmirates did try to stem the losses by proposing to pay for fuel in Nigeria in Naira, which would have at least reduced one element of our ongoing costs, however this request was denied by the supplier.\u201d<\/p>\n<p>He further disclosed that sending in foreign exchange to run its operations in Nigeria daily is further affecting Emirates\u2019 profit margins, but promised to return to normal flight operations if it was able to reclaim its trapped fund.<\/p>\n<p>\u201cWe also have to send hard currency into Nigeria to sustain our own operation. Meanwhile our revenues are out of reach and not even earning credit interest.<\/p>\n<p>\u201cYour Excellency, this is not a decision we have taken lightly. Indeed, we have made every effort to work with the Central Bank of Nigeria (CBN) to find a solution to this issue. Our Senior Vice-President met with the Deputy Governor of the CBN in May and followed up on the meeting by letter to the Governor himself the following month, however no positive response was received.<\/p>\n<p>\u201cMeetings were also held with Emirates\u2019 own bank in Nigeria and in collaboration with IATA to discuss improving FX allocation, but with limited success.<\/p>\n<p>\u201cDespite our considerable efforts, the situation continues to deteriorate. We are now in the unfortunate position of having to cut flights, to mitigate against further losses going forward.<\/p>\n<p>\u201cWhile we appreciate that this issue is primarily a financial one, any support you could kindly provide would be warmly welcomed by Emirates. We are confident that your valuable involvement would make a real difference in improving this very difficult situation.<\/p>\n<p>\u201cShould there be any positive development in the coming days, we will of course re-evaluate this decision. Meanwhile thank you for your understanding and please feel free to contact me if you wish to discuss the matter further,\u201d Al Mualla disclosed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Emirates has said it will reduce its weekly number of flights into Lagos, Nigeria from 11 to 7 due to unpaid $85million trapped in the country and unavailability of forex. Emirates said save for solutions to its challenges in Nigeria are found immediately, its decision will become effective on August 15, 2022. In a [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":3972,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_override_bookmark_settings":[],"jnews_override_counter":[],"footnotes":""},"categories":[2],"tags":[757,3572,43039,22394],"class_list":["post-206820","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-emirates","tag-flights","tag-forex-scarcity","tag-unpaid-money"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Emirates to reduce flights to Nigeria over unpaid $85m, forex scarcity<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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