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Emirates plans to reduce Nigeria service due to trapped revenue – letter

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BARCELONA, CATALONIA, SPAIN – 2022/05/31: Emirates Airline, Boeing 777-300ER airplane is seen touchdown at El Prat Airport. (Picture by Thiago Prudencio/SOPA Photographs/LightRocket through Getty Photographs)

LAGOS, Aug 1 (Reuters) – Dubai’s Emirates plans to scale back flights to Nigeria this month as a consequence of troubles repatriating income from Africa’s most populous nation, in response to 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.

Business observers say extra airways might observe swimsuit if the central financial institution, which restricts entry to international forex to deal with a extreme greenback scarcity, didn’t handle airways’ points.

“We’ve no alternative however to take this motion, to mitigate the continued losses Emirates is experiencing on account 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 resolve the issue had been met with restricted success.

Emirates didn’t remark immediately 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 anxious in regards to the naira’s worth. Learn full story

Nigeria, which will get roughly 90% of its international trade from oil, is struggling to supply as a consequence of pipeline theft and years of underinvestment. Learn full storyRead full story

Amid comparable 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 tons of of tens of millions in income that worldwide carriers working within the nation had earned. Learn full story

(Extra reporting by Camillus Eboh in Abuja and Maha El Dahan in DubaiEditing by Mark Potter)

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