The Managing Director of the Federal Airport Authority of Nigeria (FAAN) has revealed that foreign airlines owe the agency about N18.98billion, representing service charges collected through the International Air Transport Association (IATA) settlement platform.

The MD revealed this while appearing before the House of Representatives Committee on Finance on Tuesday

The FAAN boss had, in her presentation, said airlines were expected to settle charges within two weeks, but noted that several operators had exceeded that period, with some debts spanning 30 days, 90 days, and, in certain cases, over a year.

Kuku listed the indebted foreign airlines as: Qatar Airways, Lufthansa, British Airways, Virgin Atlantic, KLM, EgyptAir, Ethiopian Airlines, Air France, Royal Air Maroc, Turkish Airlines, and Africa World Airlines.

Kuku, however, noted that the debt profile is dynamic because airline liabilities are often “rolling balances,” meaning new charges can accumulate while older debts are being settled.

She said, Qatar Airways, for instance, currently owes about N1.5 billion, while Lufthansa’s outstanding debt stands at approximately N1.5 billion

The FAAN MD said Virgin Atlantic owes about N1.35 billion, while KLM, EgyptAir, and Ethiopian Airlines each owe over N1 billion in varying categories of current and outstanding payments.

Other airlines listed in the debt profile include Air France, Royal Air Maroc, Turkish Airlines, and Africa World Airlines, with debts ranging between N700 million and N1 billion.

She told lawmakers that the total outstanding amount from airlines currently stands at N18.98 billion

The lawmakers, however, questioned the FAAN MD on why airlines were allowed to accumulate such liabilities despite the two-week payment window.

A member of the committee asked FAAN why airlines that fail to settle their charges within the stipulated timeframe are not sanctioned or grounded from operating in Nigerian airports.

Lawmakers further queried why certain airlines were allowed to operate despite carrying debts beyond 90 days or even one year, stressing that such practices could undermine revenue enforcement.

Responding, the FAAN Managing Director explained that international airline payments are processed through a global clearing system managed by IATA, which sometimes introduces settlement delays.

Kuku noted that the arrangement allows airlines to make payments through a centralised financial platform used worldwide in aviation ticketing and settlement.

According to her, FAAN monitors the ageing of debts and begins stricter engagement with airlines once liabilities exceed 30 days, while debts above 90 days attract more serious attention.

Kuku also disclosed that FAAN has, in some instances, grounded airlines that failed to meet payment obligations, particularly among domestic operators that do not operate under the same global credit structures as international carriers.