The International Air Transport Association has removed Nigeria from the list of countries that failed to allow the repatriation of foreign airlines’ revenue.
This decision followed the Nigerian government’s clearance of all revenue backlogs owed to foreign airlines earlier this year.
Blocked funds globally as of Monday, amounted to $1.7 billion.
In January 2024, the Central Bank of Nigeria announced that it had cleared the backlog of foreign exchange obligations to foreign airlines operating in the country.
The CBN also stated that it had disbursed approximately $61.64 million in the final batch of payments to airlines through various banks, fulfilling its commitment to eliminate forex scarcity in the Deposit Money Banks.
Before the final liquidation, the last accruals attributed to Nigeria amounted to about $800 million.
However, in its report on Monday, IATA confirmed that $1.7 billion in airline funds were still blocked from repatriation by governments worldwide as of the end of October 2024.
This represented a slight improvement compared to the $1.8 billion reported at the end of April.
“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[1]/XOF[2] 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,” IATA’s Director General, Willie Walsh stated.
“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.
Nine countries accounted for 83 percent of the airline industry’s blocked funds, amounting to $1.43 billion. These included Pakistan – $311 million for 48 months; XAF Zone – $235 million for 60 months; Bangladesh – $196 million for 47 months; Algeria – $193 million for 24 months; Lebanon – $142 million for 60 months; Mozambique – $127 million for 47 months; Angola – $80 million for 36 months, Eritrea – $75 million for 96 months and XOF Zone, $73 million for 12 months.
IATA noted that Pakistan continues to lead the list of countries with blocked airline funds, currently at $311 million, an improvement from $411 million in April 2024. The association highlighted that the main issue contributing to the delays in repatriation is the system of audit and tax exemption certificates, which is causing prolonged processing delays.
IATA also noted that Bangladesh had reduced its blocked funds to $196 million, down from $320 million in April. The global body urged Bangladesh’s central bank to continue prioritizing airlines’ access to foreign exchange in accordance with international obligations.
