EU Confirms Nigeria Has Cleared $850m Debt To European Airlines

The Federal Government has settled the $850 million outstanding debt owed European airlines, the European Union (EU) has revealed.

The EU Ambassador to Nigeria and the ECOWAS, Ms. Samuela Isopi, revealed this 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’, had in attendance the Director-General at 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, Directorate of International Partnerships (INTPA), 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 serve its members better, promote European business interests in Nigeria, and contribute to the overall mutual economic growth and development.

In a similar vein, the Dutch entrepreneurial development bank FMO and Nigeria’s First City Monument Bank (FCMB) signed a $25 million NASIRA guarantee agreement.

The agreement will also 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 as well as the removal of foreign exchange restrictions on the import of 43 items.

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

Isopi also pointed out that Nigeria is the EU’s biggest foreign investor, with a stock estimated at 26 billion euros, representing one-third of Nigeria’s foreign direct investment, adding 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 owned 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.