Kehinde Fajobi
The International Air Transport Association (IATA) has confirmed that Nigeria is no longer among the countries blocking airlines’ funds.
According to IATA, nine nations now account for 83 per cent of the airline industry’s blocked funds, totalling $1.43 billion. The countries include Pakistan, XAF Zone, Bangladesh, Algeria, Lebanon, Mozambique, Angola, Eritrea, and XOF Zone.
As of October 2024, $1.7 billion in airline funds remained blocked, a slight improvement from the $1.8 billion reported in April.
In June, IATA announced that the Central Bank of Nigeria (CBN) had cleared $831 million in trapped funds belonging to foreign airlines, resolving the long-standing issue.
Commenting on the situation, IATA Director General Willie Walsh noted progress in several countries but highlighted emerging concerns.
He said: “Over the last six months, we have seen significant reductions in blocked funds in Pakistan, Bangladesh, Algeria, and Ethiopia.
“At the same time, amounts are rising in the XAF/XOF zones and Mozambique. Bolivia has also emerged as a problem, where repatriating sales revenues is becoming increasingly difficult and unsustainable for airlines.
“This unfortunate game of ‘whack-a-mole’ is unacceptable. Governments must remove all barriers for airlines to repatriate their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations.”
Walsh warned that blocking funds threatens aviation connectivity and economic growth.
“No country wants to lose aviation connectivity, which drives economic prosperity. But if airlines cannot repatriate their revenues, they cannot be expected to provide a service. Economies will suffer if connectivity collapses.
“So, it is in everyone’s interest, including governments, to ensure that airlines can repatriate their funds smoothly,” he added.