The International Air Transport Association has confirmed that the Central Bank of Nigeria has cleared foreign airlines trapped funds worth $831m from June last year to date.
This was disclosed by the Director-General of IATA, Willie Walsh, in a statement on Sunday, according to The Punch.
International airlines now have over $1.8 billion in funds stuck worldwide, according to the IATA, which is headquartered in Geneva, Switzerland.
IATA said that only $19 million remains outstanding from the high of around $850 million in foreign airline funds in Nigeria in June.
IATA said the remaining $19m was awaiting the CBN verification through commercial banks.
However, the DG of IATA commended the Nigerian government for their efforts in guaranteeing the international airlines’ successful repatriation of the monies.
He said, “At its peak in June 2023, Nigeria’s blocked funds amounted to $850 million, significantly affecting airline operations and finances in the country. Carriers faced difficulties in repatriating revenues in US dollars, and the high volume of blocked funds led some airlines to reduce their operations and one carrier to temporarily cease operations in Nigeria, which severely impacted the country’s aviation industry. However, as of April 2024, 98 per cent of these funds have been cleared. 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. 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.”
According to IATA, the quantity of airline funds that governments prevent from being repatriated has significantly decreased.
Walsh noted the major reason for the reduction was a significant clearance of funds blocked in Nigeria.
Egypt also approved the clearance of its significant accumulation of blocked funds.
“However, in both cases, airlines were adversely affected by the devaluation of the Egyptian Pound and the Nigerian Naira,” IATA said.
