Nigeria settles $850m debt to European airlines

The Federal Government has paid off the outstanding debt of $850 million owed to European airlines, the European Union (EU) has said.

The EU Ambassador to Nigeria and ECOWAS, Samuela Isopi, revealed this on Tuesday at the ongoing 9th edition of the Nigeria-EU Business Forum in Abuja.

The forum, with the theme ‘Investing in Jobs and a Sustainable Future’, was attended by the Director-General of the EU, Myriam Ferran, the Minister of Budget and National Planning, Atiku Bagudu, and the Permanent Secretary at the Ministry of Industry, Trade, and Investment, Ambassador Nura Rimi.

At the event, the EU and Eurocham Nigeria (The European Business Chamber) signed a €300,000 grant agreement to support further development of the Chamber.

The Deputy Director-General of the Directorate of International Partnerships (INTPA) at the European Commission, Myriam Ferran, and Eurocham’s Vice-President, Frederik Klinke, signed the agreement on behalf of the parties.

The grant aims to enhance Eurocham’s capacity to better serve its members, promote European business interests in Nigeria, and contribute to mutual economic growth and development overall.

Similarly, the Dutch Entrepreneurial Development Bank (FMO( and Nigeria’s First City Monument Bank (FCMB) signed a $25 million NASIRA guarantee agreement.

The agreement will enable FCMB to expand its funding to agricultural, youth, and women-owned SMEs without requiring collateral, targeting a client group typically deemed too risky by banks.

Isopi commended the government for its intervention in clearing the backlog and for removing foreign exchange restrictions on the import of 43 items.

She explained that Nigeria remains the EU’s largest trading partner, with about €35 billion in trade relations in the previous year.

Isopi also noted that Nigeria is the EU’s biggest foreign investor, with a stock estimated at €26 billion, representing one-third of Nigeria’s foreign direct investment. She added that over 230 EU companies operate in Nigeria, providing jobs for youths and women.

Isopi noted that a key condition for any foreign investor is the ability to repatriate profits.

“A year ago, these funds amounted to $850m, with a big chunk being owed to European airlines. Today, more than 98 percent of arrears have been cleared. This is a major achievement,” Isopi said.

According to her, “investor confidence takes time to build up, but resolving these issues was a top priority.”