Nigeria Pursues N19bn Airline Debt as Kenya Plans Sh175bn Road Bond Listing
Nigeria's House of Representatives has given aviation authorities a two-week deadline to recover N19 billion owed by foreign airlines, while Kenya prepares to list a Sh175 billion infrastructure bond backed by road maintenance levies.
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Nigeria's House of Representatives issued a two-week ultimatum Tuesday for the Federal Airport Authority of Nigeria (FAAN) to recover approximately N19 billion in outstanding debts owed by foreign airlines operating in the country, according to The Nation Newspaper.
The directive represents the latest effort by Nigerian authorities to strengthen revenue collection from international carriers, a persistent challenge as foreign exchange restrictions and payment processing delays have strained relations between the government and global airlines over the past two years.
In Kenya, the government is preparing to list a Sh175 billion ($1.36 billion) infrastructure bond on the Nairobi Securities Exchange, backed by the country's securitised road maintenance levy fund, Business Daily Africa reported. Investors in the bond will receive settlements directly from the dedicated levy fund, providing a ring-fenced revenue stream for debt service.
The road bond listing marks Kenya's largest infrastructure financing initiative through the domestic capital markets this year, as the Treasury seeks to diversify funding sources beyond traditional bilateral and multilateral lenders. The securitisation structure aims to attract institutional investors by offering predictable cash flows from the mandatory road maintenance levy collected on fuel sales.
Kenya's budget allocations have also drawn scrutiny after the Independent Electoral and Boundaries Commission received Sh169 million ($1.31 million) in supplementary funding for vehicle purchases, according to Business Daily Africa. The allocation follows the appointment of a fresh team of commissioners who assumed office on July 11, 2025.
The vehicle procurement budget has sparked debate over spending priorities as Kenya implements fiscal consolidation measures under its IMF programme, which targets a primary budget surplus and reduced public debt levels. Critics have questioned the timing of discretionary expenditures amid ongoing revenue pressures and austerity commitments.
Both Nigeria and Kenya face mounting pressure to optimise revenue collection and expenditure management as elevated debt service costs constrain fiscal space across sub-Saharan Africa's major economies.