- Restoration of diplomatic relations will open new vistas in trade, investment and tourism sectors in both countries
Besides being a hub for aviation, tourism and businesses, the United Arab Emirates (UAE) is home to many Nigerians. It was, therefore, a piece of cheering news when President Bola Tinubu announced that his administration has finally resolved the diplomatic dispute between the United Arab Emirates (UAE) and Nigeria, Africa’s largest economy.
The UAE imposed a visa ban on Nigerians in October last year, shortly after Emirates Airlines suspended flights to Nigeria. The move was allegedly a response to Nigeria’s failure to help Emirates Airline repatriate its earnings in foreign exchange, amounting to $85 million. Additionally, the UAE’s Etihad Airways stopped flights to Nigeria. Emirates Airline is owned by the government of the UAE. Specifically, it is owned by the Investment Corporation of Dubai, which is a government-owned entity. The airline is part of the Emirates Group, which also includes other aviation-related companies and services. Like the Emirates Airline, Etihad Airways, part of the Etihad Aviation Group, is owned by the government of the Emirate of Abu Dhabi in the United Arab Emirates (UAE).
The UAE immigration authorities subsequently announced a ban on visa applications from Nigerians. The UAE government said the suspension would subsist pending the resolution of issues between it and the Nigerian government. The country also stopped issuing tourist visas to persons under the age of 40, a policy that affected many Nigerians as well. The row has had a significant negative impact on travels, bilateral trade and investments. The UAE is a major trading partner for Nigeria, and the suspension of flights had made it more difficult for businessmen and women to operate.
The sour relations between both countries had earlier witnessed the Emirates Airlines suspending its operations to Nigeria on December 13, 2021, in reaction to Nigeria’s Federal Government’s withdrawal of the carrier’s flight frequencies, except one, to Nigeria. But, the UAE was the first to reduce Air Peace’s request for three weekly flights to one, and had claimed it did not have enough slots for the airline. On its part, Air Peace said it would be suspending operations with effect from Tuesday, November 22, 2022, “till further notice.” It, thereafter, redirect its flights operation to other routes.
Nigerians, known for their adventurous spirit and penchant for visiting Dubai for holidays, shopping, and medical tourism, found themselves compelled to seek alternative airlines like Kenyan Airways or embark on circuitous routes via cities such as Cotonou, Accra, or other West African nations. Even when opting for these detours, travellers were subjected to a mandatory 14-day quarantine upon their arrival in Dubai. This stringent procedure has resulted in significant discomfort for Nigerian travellers, prompting calls from aviation experts for a diplomatic resolution between the two countries.
The total volume of bilateral oil trade between Nigeria and the UAE amounts to approximately $1.5 billion. Essentially, the UAE serves as a pivotal nexus, especially for Nigerian enterprises seeking to engage in commerce across the Eastern regions, encompassing countries such as China, Japan, Korea, and the broader Middle East. Many Nigerian businesses view the UAE as a central gateway to accessing these markets. Therefore, the recent suspension of bilateral travel between Nigeria and Dubai in recent months has had adverse consequences on the operational capacities of numerous Nigerian companies engaged in international business. One noteworthy challenge stems from the absence of Nigerian banks with UAE as a designated trading hub, a role crucial in facilitating trade across the Eastern hemisphere. The inability to travel and conduct business in the UAE has emerged as a prominent concern, hindering the ability of Nigerian companies to engage in international trade and business ventures.
Without mincing words, the travel ban, before President Tinubu’s intervention, had adverse effects on the economic interests of both nations and placed numerous Nigerian business owners in the UAE in challenging circumstances. Many experts believe this positive development will strengthen the interests of both countries in terms of trade, investments, security, and tourism. Numerous Nigerians, whose business endeavours were halted due to the ban, will now have the opportunity to revive their ventures. This signifies significant economic growth for both Nigeria as a nation and its citizens, when weighed in terms of missed opportunities in agriculture, tourism, trade, investments, peace, and security since the travel ban was enacted. It is also a win-win situation when seen from the strain the diplomatic row placed on the bilateral relationship between the two countries.
Issues behind the diplomatic row
Beyond the issue of repatriating revenues, it’s important to note that during the diplomatic rift last year, the Director-General of the Nigerian Civil Aviation Authority (NCAA), Captain Musa Nuhu, provided insights into the situation. He explained that NCAA withdrew its approval for Emirates to operate 21 flights to Nigeria due to the refusal of the General Civil Aviation Authority (GCAA) of the UAE to grant equal rights to the sole Nigerian carrier, Air Peace, which operated flights to Dubai via Sharjah. Nuhu clarified that the then Minister of Aviation, Hadi Sirika, had granted Emirates Airlines 21 weekly frequencies to two major Nigerian airports: 14 to Lagos and seven to Abuja.
When Emirates suspended its services to Nigeria, it stated, “Emirates is committed to its operations in Nigeria, and we stand ready to reinstate services once restrictions are lifted by the Nigerian authorities, ensuring travellers have more choice and access to trade and tourism opportunities in Dubai, and beyond to our network of over 120 destinations.” In solidarity with Emirates, Etihad Airways also suspended its flights to and from Nigeria. While the issue of repatriating revenues was well-known, records indicate that some Nigerians traveling to the Middle East nation were involved in criminal activities.
It was a known fact that wealthy Nigerians have made huge investment in real estate in UAE. Therefore, analysts predicted that Nigerians would feel it more if UAE decides to permanently cut diplomatic relations with the country. The UAE had forced Nigerians out of the country at different times, compelling the Federal Government to send airplanes to evacuate the citizens back to the country. This came after eight Nigerians were sentenced to death in Sharjah for robberies at money exchanges and cash machines (ATMs) across the emirate in December 2016. Also, prostitutes and fraudsters were also known to have descended on Dubai.
Some Nigerians believed to be members of cult groups, who were armed with cutlasses, were arrested fighting on the streets of Ajman, Dubai. Knowing that those behind the clashes were young Nigerians, the Arab nation decided to restrict issuance of visa to those below 40 years, except those travelling with family members on tourism. Some smart Alecs circumvented this regulation by obtaining visa for family visit and travelling alone. The UAE was equally ahead of them, detaining such travellers on arrival.
At the height of the visa ban, hundreds of Nigerians lost their jobs and were stranded for months. It was gathered that the Nigerians realised the sordid situation upon securing another jobs. Unable to bear the ensuing misery, some of them returned to Nigeria since they committed no crime in their host country. Others stayed, hoping that the decision would be rescinded. Many Nigerians who are professionals resorted to doing menial jobs, owing to the allures of the UAE, its cultures and traditions across its seven emirates namely; Abu Dhabi, Dubai, Sharjah, Ras al-Khaimah, Ajman, Umm al-Quwain and Fujairah. To many Nigerians working in the emirates, the urge to live and work in the country was tempting despite not having work permits.
Reversal of visa ban and inking of billion-dollar deal
Last week, following the lifting of the visa ban by the UAE, Nigeria secured an investment deal worth billions of dollars, according to the Presidency. According to Presidency, Nigeria and the emirates established a framework for investments worth billions of dollars across multiple sectors, including defence and agriculture. “What we’ve done today is to not only normalise relations, but then to add new dimensions to that relationship or partnership that are mutually beneficial to both nations. And I think as we move forward, the details of those investments will become clear,” the Presidency said.
In line with the Bilateral Air Service Agreement (BASA), the Federal Government and the emirates have agreed to give reciprocal rights to Nigerian airlines. Minister of Aviation and Aerospace Development, Festus Keyamo, while speaking at the side-lines of the 7th African Aviation Summit in Abuja, at the weekend, said during his meeting with Emirates and Etihad airlines, he insisted Nigerian airlines should be given reciprocal rights.
On resumption of flight operations by Emirates and Etihad, he said: “We are working out the details. We cannot say the time frame.” But the Presidency said Emirates and Etihad airlines are expected to resume operations immediately without any payment by the Federal Government. This was to include a successful negotiation of a new foreign exchange liquidity programme with the UAE.
While the specific financial details of the deal remain undisclosed, President Tinubu’s willingness to break the deadlock reflects a more open approach to foreign investors who have voiced concerns about the challenges of repatriating funds from Nigeria, particularly in light of the strict foreign currency restrictions imposed during President Muhammadu Buhari’s tenure. In a departure from previous policies, Nigeria has announced that the new agreement will also encompass the launch of a joint foreign exchange liquidity program with the UAE. Further particulars regarding this program will be unveiled in the upcoming weeks.
Moreover, both nations have agreed that the investment arms of the UAE government will inject “several billions of US dollars” into various sectors of the Nigerian economy, including defense, agriculture, among others. The official statement also underscored President Tinubu’s appreciation for UAE leader Al Nahyan’s steadfast friendship and his resolute efforts to collaborate in fully normalising and elevating the standard of relations between these two prominent countries.
As Nigerians were celebrating the announcement by the Federal Government, in a statement on its website on the diplomatic meeting, Emirates News Agency, UAE’s official news agency, did not mention anything about the lifting of visa ban on Nigerians as well as flight resumption. The agency only mentioned that the UAE President and Tinubu explored opportunities for further bilateral collaboration in areas that served both countries’ sustainable economic growth, including the economic, development, energy and climate action fields.
