Nigeria has released 98% of blocked airline funds, and the International Air Transport Association (IATA) now says just US$ 19 million of blocked funds remains due to the Central Bank’s ongoing verification of outstanding forward claims filed by the commercial banks.
By June 2023, about US$ 850 million of airline funds were stranded in the country as a result of the country’s restrictive currency policies, making it impossible for international airlines to repatriate profits.The high volume of blocked funds had led some airlines to reduce their operations, which severely impacted the country’s aviation industry.Emirates said in August 2022 that it would suspend all flights to and from Nigeria, citing its inability to repatriate funds from the country.“We are on the right path and urge the government to clear the residual US$ 19 million and continue prioritising aviation,” said Willie Walsh, IATA’s Director General.
In a letter sent to the government on 22 July 2022, Emirates said that it had US$ 85 million stuck in the country as of that month, a figure that had been rising by US$ 10 million per month.
With the funds cleared, the company’s services in Nigeria are now set to resume on 1 October 2024.
In Africa as a whole, IATA reported a reduction of US$ 708 million in blocked funds since December 2023, but continent-wide total blocked funds still stood at approximately US$ 1.8 billion at the end of April.
Algeria, Ethiopia, Eritrea, Zimbabwe, and states which use the Central African franc, are responsible for 40.56% of the blocked funds, according to IATA.
The International Air Transport Association (IATA) on Tuesday urged Pakistan and Bangladesh to remove barriers to airlines repatriating ticket revenues after Nigeria released the vast majority of blocked funds.
According to the world trade body, Pakistan and Bangladesh collectively owe $731 million out of a global total of $1.8 billion in blocked airline funds.
See Also:
British Airways Plans to Temporarily Halt Flights to Nigeria
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