With the country's currency becoming increasingly weak and foreign exchange shortages in Nigeria, paying for airline insurance and other services has become a major struggle for many Nigerian carriers. And on top of this problem, the Nigerian Civil Aviation Authority has threatened to ground uninsured aircraft and ban airlines and air service providers. Insurance is a growing problemNigerian carriers usually sell tickets in Naira, but are expected to pay for flight insurance, aircraft maintenance, and equipment in US dollars. But a few months ago, in June, the Central Bank of Nigeria devalued the naira and ordered commercial banks to sell foreign currency only at the fixed market rate, causing a severe foreign exchange shortage in the country. because it did not appeal to investors. With the sharp decline in Nigeria's foreign imports and exports in recent years, the value of the naira is bound to fall as airlines have little or no access to US dollars at the exchange rate. sounds good. Without more US dollars, the number of airlines unable to pay for flight insurance and other required services continues to grow at an alarming rate.
The problem may continue to worsen, at the expense of Nigerian carriers who cannot find the necessary hard cash, according to Ibom Air Managing Director George Uriesi. Restrictions will be lifted soon as more flights fall into the uninsured category, the Civil Aviation Authority of Nigeria issued a directive on August 11 to all airlines and air traffic controllers. , which was signed by the Director General of Aviation, Captain Musa Nuhu. According to the directive, any flight operated by a local airline without proper insurance will be grounded. Restrictions will be lifted soon as more flights fall into the uninsured category, the Civil Aviation Authority of Nigeria issued a directive on August 11 to all airlines and air traffic controllers, which was signed by the Director General of Aviation, Captain Musa Nuhu. According to the directive, any flight operated by a local airline without proper insurance will be grounded. The directive also states that any airline and air traffic controller that does not comply with section 18.14.11 of the Nigerian Civil Aviation Act - which came into effect on July 10 this year, will incur immediate penalties. Captain Nuhu pointed out that the punishment, in addition to the downing of the plane, would include heavy fines imposed on the violators, although the punishment was not specified. At the end of the line, Although, the intention and punishment are right for aviation safety, the overall outlook for Nigerian carriers is not good with this new threat. As the Nigerian airline industry is still struggling to recover, the current restrictions may lead to the failure of some airlines, as many of the planes on the ground eventually come out. low-income airlines.
