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IATA Commends Nigeria For Clearing 98% Of Foreign Airlines’ Trapped Funds
The International Air Transport Association (IATA) commends Nigeria for clearing 98% of foreign airlines’ trapped funds.
At its peak in June 2023, IATA said Nigeria’s blocked funds was $850m, forcing some airlines to reduce their operations.
As of April 2024, 98% of these funds have been cleared, remaining remaining $19 million.
As of May 2022, Nigeria, with $450m trapped funds, top the list of 12 African countries that have collectively owe US$1b.
The International Air Transport Association (IATA) has reported a 98% decrease in the amount of foreign airline funds blocked from repatriation by the Nigerian government.
At its peak in June 2023, IATA said Nigeria’s blocked funds amounted to $850 million, forcing some airlines to reduce their operations to Nigeria, which severely impacted the country’s aviation industry.
As of April 2024, 98% of these funds have been cleared. IATA notes that the remaining $19 million is due to the Central Bank’s ongoing verification of outstanding forward claims filed by the commercial banks.
“We commend the new Nigerian government and the Central Bank of Nigeria for their efforts to resolve this issue,” Willie Walsh, IATA’s Director General, said in a statement.
“Individual Nigerians and the economy will all benefit from reliable air connectivity for which access to revenues is critical. We are on the right path and urge the government to clear the residual $19 million and continue prioritizing aviation,” Walsh added.
As of May 2022, Nigeria, with $450 million trapped funds, top the list of 12 African countries that have collectively blocked foreign airlines from repatriating US$1 billion to their home countries, which is 67% of airlines’ blocked funds globally.
