The International Air Transport Association (IATA) has lauded the Nigerian government for successfully releasing 98 percent of the airlines’ trapped funds, which had been inaccessible for repatriation.
In a statement on Sunday, IATA’s director-general, Willie Walsh, disclosed that this amounted to $831 million, with the remaining two percent totaling $19 million.
Walsh emphasized that Nigeria’s blocked funds, totaling $850 million as of June 2023, had significantly impacted airline operations and financial stability within the country.
He highlighted the challenges airlines faced in repatriating revenues in U.S. dollars, leading to operational constraints and financial strain.
“We commend the new Nigerian government and the Central Bank of Nigeria for their concerted efforts in resolving this issue,” Walsh stated, underlining the critical role of reliable air connectivity for the nation’s economy and citizens.
He urged the government to swiftly clear the remaining $19 million and to maintain a focus on supporting the aviation sector.
Walsh also noted a positive trend, with a 28 percent decrease in airline funds being blocked from repatriation by governments globally.
He emphasized that while progress had been made, the remaining $1.8 billion in blocked funds required urgent attention.
The reduction in blocked funds was largely attributed to significant clearances in Nigeria and Egypt, although currency devaluation in both countries had adversely affected airlines.
Eight countries, including Pakistan, Bangladesh, Algeria, the XAF Zone, Ethiopia, Lebanon, Eritrea, and Zimbabwe, accounted for 87 percent of the total blocked funds, amounting to $1.6 billion.
IATA called upon governments to eliminate all obstacles hindering airlines from repatriating revenues, in alignment with international agreements and treaty obligations, to ensure the sustainability of the aviation industry.
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