The federal government may move to seize the assets of Dana Air to refund trapped funds belonging to passengers and travel agents, according to the Minister of Aviation and Aerospace Development, Festus Keyamo.
Keyamo said he would direct the Nigeria Civil Aviation Authority to investigate why the airline has not refunded affected customers months after its operations were suspended. He spoke in Abuja on Tuesday at the fourth quarter stakeholder engagement themed “Leveraging public feedback to drive excellence in aviation services.”
The minister explained that the suspension of Dana Air was a choice between “safety and disaster,” adding that safety concerns documented in several reports left the government with no option. He said the administration placed the lives of Nigerians above commercial considerations.
Dana Air’s suspension followed a runway excursion involving one of its MD-82 aircraft, 5N-BKI, at the Murtala Muhammed International Airport. The NCAA subsequently halted the airline’s Air Operator Certificate on April 24, 2024, to allow for full safety and economic audits.
Keyamo said the government is now exploring legal and regulatory options to ensure customers get their money back. “I have asked Najomo to dig deep to find out how those passengers and agents will be refunded. One solution will be that if the same individuals or entities try to return to aviation under any guise, they must settle their debts first,” he said.
He added that the government may compel the airline to liquidate available assets. “Let them sell their assets. Let us cannibalise their revenue and pay people. NCAA should do that because they cannot get away with it,” the minister stated.
Providing an update on consumer protection activities, Director General of NCAA, Capt. Chris Najomo, said over 9,000 passengers received refunds or compensation between January and September 2024. He noted that 80 percent of passenger complaints were resolved immediately, while baggage and refund issues were handled within regulatory timelines.
Background
Dana Air has faced recurring safety concerns over the years. The airline previously experienced multiple incidents, including the fatal 2012 Dana crash in Lagos that killed 153 people. Although the airline later resumed operations, public confidence continued to fluctuate due to periodic safety-related suspensions. The latest suspension has reignited concerns over regulatory compliance within the domestic aviation sector and renewed calls for stricter oversight of Nigerian carriers.
