The Nigerian government has cleared part of the trapped funds for Emirates and Etihad Airlines, paving the way for flights to Dubai to resume by December. Trapped funds have been reduced from $85 million to $12 million for Emirates. This move is tied to the lifting of the visa ban, and agreements are likely to be finalized during COP28 in Dubai. The visa ban, implemented by the UAE in October 2022, has affected travel and business activities between Nigeria and Dubai. Once the ban is lifted, Nigerians are expected to resume travel to Dubai for various purposes, including business, tourism, and family visits.
Key Points:
- Trapped Funds: Trapped funds belonging to Emirates and Etihad Airlines have been partially repaid by the Nigerian government. The funds have been reduced from $85 million to $12 million for Emirates, despite the loss incurred due to the weakening of the naira against the dollar.
- Visa Ban and Flight Suspension: The UAE imposed a ban on visa applications from Nigerians in October 2022. As a result, Emirates suspended flight operations to Nigeria due to the inability to repatriate revenue trapped in the country. Talks have been ongoing at the highest level to lift the visa ban and resume flights.
- Policy Recommendations: The resumption of flights is expected to benefit both countries economically. Nigerians constitute a significant portion of visitors to Dubai, contributing to tourism, business, and trade activities.
- Business Impact: Businesses in Dubai, including shops, restaurants, and supermarkets, have been affected by the visa ban and the subsequent drop in Nigerian visitors. Some businesses are facing challenges and operating at a loss, highlighting the economic impact of the travel restrictions.
- Bilateral Air Service Agreements (BASA): The issue of double taxation, raised by UAE-based businesses, including airlines, calls attention to the need for stronger BASA agreements. Addressing taxation concerns will be crucial for creating a favorable business environment for both Nigerian and foreign carriers.
Conclusion: The potential resumption of flights to Dubai by December is a positive development for travel and business activities between Nigeria and the UAE. The clearance of trapped funds and discussions around the visa ban indicate progress in resolving the travel restrictions. This is anticipated to have a positive impact on businesses in Dubai that rely on Nigerian visitors. Strengthening bilateral agreements, including BASA, will be essential for sustaining a conducive environment for airlines and businesses operating between both countries.
