"They Stole Our $2 Million": Air Peace CEO Recounts How Tunisian Firm Duped Airline
- Air Peace CEO Allen Onyema was scammed by a Tunisia-based leasing firm, but chose not to pursue legal action to protect Nigeria’s reputation
- He explained that the loss occurred during a period when Nigerian airlines faced an unofficial global blacklist over contract breaches
- Onyema urged the FG to ease access to funding and foreign exchange for airlines, highlighting the challenges of high interest rates and others
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
The Chief Executive Officer of Air Peace, Allen Onyema, has revealed how the airline lost $2 million to a Tunisia-based leasing company, choosing not to take legal action in order to protect Nigeria’s image in the global aviation sector.
Source: UGC
Speaking at the 29th annual conference of the League of Airport and Aviation Correspondents in Lagos, Onyema explained that the foreign company had requested the funds for aircraft parts but disappeared after receiving payment.
According to him, at the time, Nigeria was unofficially blacklisted for contract breaches by some local airlines, and pursuing the matter could have worsened the industry’s reputation.
He said:
“A foreign company defrauded us of $2 million. They told us they wanted to buy aircraft parts and needed a sum of $2 million.
“If I had stopped them from taking the money, Nigeria would have been further blacklisted. What you would be hearing is that Nigerian airlines are unreliable.
“For the sake of the aviation industry, I decided not to stop this transaction. The company took our money and never came back. They stole our $2 million."
Since the unfortunate incident, Air Peace, Nigeria’s largest airline, has gone on to acquire multiple Embraer E175 aircraft costing hundreds of millions of dollars.
Air Peace boss seeks better funding for airlines
Onyema also lamented the high cost and difficulty of securing funding in Nigeria, citing interest rates of up to 35% and stringent collateral demands.
The former legal practitioner, who has now transitioned into an aviation mogul, called for aviation funding support.
He said:
“In Nigeria, funding is very expensive with a 35 per cent interest rate, and it’s not even available to everybody. People are also asked to bring collateral that is almost impossible to get. We need the banks, but the conditions being imposed are very far from being helpful."
He urged the government to create a foreign exchange window for airlines through the Central Bank of Nigeria or the Bank of Industry, similar to policies in Egypt and other countries.
While commending the current administration for stabilising exchange rates, he stressed that airlines still operate at a disadvantage without such targeted support.
Source: UGC
Air Peace CEO explains delay in public listing
In related news, Legit.ng reported that Onyema said the airline is holding off on becoming a publicly listed company until it has fully strengthened its operational base.
According to him, an early move to the stock market could expose the business to external pressures from minority shareholders, potentially affecting its commitment to social impact initiatives.
Onyema noted that while listing on the exchange is part of the company’s long-term vision, it will only proceed when the business has built a solid and sustainable foundation to ensure stability and continued service to the public.
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Source: Legit.ng
