The International Air Transport Association (IATA) has confirmed that 98% of the foreign airline funds held up in Nigeria have now been successfully cleared.
This progress marks a notable improvement since June 2023, when Nigeria’s blocked funds peaked at $850 million, which impacted airline operations and finances in the country.
As of April 2024, only $19 million remains outstanding, pending the Central Bank‘s verification of outstanding forward claims filed by commercial banks.
Airlines operating to Nigeria had previously encountered difficulties repatriating revenues in US dollars, prompting adjustments to their operations such as halting the sale of lower-priced tickets.
Emirates, a UAE carrier, ceased flights to Nigeria due to these challenges and plans to resume operations in October.
IATA Director-General Willie Walsh commended the Nigerian government and the Central Bank for their efforts in resolving the issue, stressing the importance of reliable air connectivity for individuals and the economy.
“We commend the new Nigerian government and the Central Bank of Nigeria for their efforts to resolve this issue. 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 prioritising aviation,” the DG stated.
IATA reported a 28% decrease in globally blocked airline funds since December 2023, with total blocked funds standing at approximately $1.8 billion by April 2024.
While acknowledging the positive trend, Walsh restated the need for governments to remove barriers to airlines’ repatriation of revenues in line with international agreements.
“The reduction in blocked funds is a positive development. The remaining $1.8 billion, however, is significant and must be urgently addressed. The efficient repatriation of airline revenues is guaranteed in bilateral agreements.
“Even more importantly, it is a pre-requisite for airlines—who operate on thin margins—to be able to provide economically critical connectivity. No business can operate long-term without access to rightfully earned revenues,” he said.
Pakistan and Bangladesh are highlighted as having severe situations, with airlines unable to repatriate $731 million of revenues.
IATA urged these countries to release the blocked funds promptly to ensure the continued provision of essential air connectivity.