The regulatory Nigerian Civil Aviation Authority (NCAA) has launched an economic audit of all airlines operating in the country to ascertain their financial solvency, the local media reported Monday, quoting NCAA Director-General Harold Demuren.
The audit comes amid reports that the global economic crisis and the fall in the value of the local currency, the Naira, against some foreign currencies, have p u t the airlines in dire financial straits. The private Guardian reported recently that some troubled airlines had already laid off their workers, even though they have yet to settle their entitlements, while the airlines are also said to be owing huge sums of money to NCAA and other a viation agencies, fuel marketers and ground handling companies, among others. “I want to categorically state that we are conducting economic audit on our airlines to know their state of health,” Demuren, credited with enhancing aviation safety in Nigeria, said. He said any airline that fails the financial viability test would have its Air O perators Certificate (AOC) revoked by the agency. Nigeria’s domestic airlines have enjoyed a boost since the deregulation of the s ector long before deregulation became a buzz word in the country, but recent dow n turns in global economy and other problems have made their operations more difficult.
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