Friday, September 21, 2012

Central Bank Bars Nigeria Airlines From Bank Loans

Nigeria's Central Bank has barred the nation's top two airlines from receiving any additional loans over their massive outstanding debts to the federal government.

Central Bank spokesman Ugo A. Okoroafor told The Associated Press on Friday the decision affected Arik Air Ltd. and Aero Contractors Co. of Nigeria Ltd.

The Central Bank says Arik Air, the nation's largest airline, owes more than $534 million. The Central Bank says Aero Contractors Co. of Nigeria Ltd., the airline of choice for many of the foreign oil companies working in Nigeria, owes more than $203 million.

Simon Tumba, a spokesman for Aero Contractors, declined to immediately comment Friday. Arik Air spokesman Adebanji Ola said the airline "was not in receipt of that particular" order by the Central Bank and declined to comment further.


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