Airlines’ trapped funds: Relevant authorities are working on it ― Lai Mohammed

The ongoing controversy over the $600 million trapped funds belonging to the foreign carriers operating in Nigeria may soon be tackled as indications have emerged that the relevant authorities in Nigeria are already working around it.

The Minister of Information and Culture, Lai Mohammed stated this on Monday in Lagos airport during the tour of the newly commissioned terminal at the international wing of the airport.

Responding to questions from journalists on the trapped funds, the minister said that the relevant government organizations were working to address the issue saying: “On the trapped funds, I can tell you that the relevant authorities are working hard on that issue”.

Speaking on if the loans obtained from China and other institutions were well-utilized and would be paid back as stipulated in their contract terms, the minister expressed optimism that the loans obtained by the Federal Government for infrastructure purposes were being judiciously used by the government but regretted that most Nigerian citizens don’t pay taxes to the government.

He appealed to Nigerians to ensure prompt and adequate payment of taxes for the growth of the country.

The Nigerian government had secured a $500 million loan deal from the Exim Bank of China for the construction of five new terminals, while additional counterpart funding of $100 million was added by the Nigerian government.

Construction commenced on the Lagos new international terminal by the Chinese construction company, China Civil Engineering Construction Corporation (CCECC), in 2013 with a completion period fixed for 20 months.

Concerns were however raised by the public about the repayment plans by the Federal Government.
According to the minister: “It is not actually taking the money that is the problem, but what we do with the money. When loans are used and invested in infrastructures such as this, then it means the loans are widely used.

“The major problem is that the tax to the Gross Domestic Product (GDP) ratio is so low because most Nigerians don’t pay tax. So, I want to appeal to Nigerians to help the government in paying their taxes, and then there will be a reduction in the deficit that we are experiencing.”
The minister expressed satisfaction at the new Lagos airport terminal, stressing that the facilities in the terminal were comparable to anywhere else in the world.

He explained that the new terminal was built to complement the old terminal, which was constructed in 1979, stressing that the terminal with eight security screening points, seven passenger boarding bridges and six boarding gates, has the capacity for 14 million passengers annually.

Commending President Muhammadu Buhari for supporting infrastructure development in the country despite the challenges while maintaining that no past governments in the country had shown much commitment to infrastructure in the country, Lai-Mohammed declared: “I was here 40 years ago when the first terminal was commissioned. You know aviation is unforgiving of any mistake. So, we need to test-run and be extremely certain that every piece of equipment is working optimally. The beauty of it is that this airport has become operational. You can come here and continue to various parts of the world.

“When the old airport was commissioned, it took quite a while for it to become operational. The new international terminal is not to replace the old one, but to complement it. It is gradually, and very soon this airport will be very busy. You can see that terminals are not used only by airlines. We have restaurant operators, banks, foreign exchange operators and others. And you have to screen people over and over again before it becomes operational”.

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