By Adedapo Adesanya
Fresh data from the International Air Transport Association (IATA) has revealed that the total amount of foreign airlines’ trapped funds in Nigeria has risen to $812.2 million from the $802 million reported in April.
The updated figure came as IATA warned all owing governments that the blocked airline funds could threaten airline connectivity in the affected markets.
This was noted on the sideline of the ongoing IATA Annual General Meetings and World Air Transport Summit ongoing in Istanbul, Turkey.
According to a statement seen by Business Post, the industry’s blocked funds have increased by 47 per cent to $2.27 billion in April 2023 from $1.55 billion in April 2022.
Speaking on this, Mr Willie Walsh, IATA’s Director General, said, “Airlines cannot continue to offer services in markets where they are unable to repatriate the revenues arising from their commercial activities in those markets. Governments need to work with industry to resolve this situation so airlines can continue to provide the connectivity that is vital to driving economic activity and job creation.”
Nigeria led the top five countries that account for 68.0 per cent of blocked funds comprising Nigeria ($812.2 million), Bangladesh ($214.1 million), Algeria ($196.3 million), Pakistan ($188.2 million), and Lebanon ($141.2 million).
IATA urged governments to abide by international agreements and treaty obligations to enable airlines to repatriate these funds arising from the sale of tickets, cargo space, and other activities.
The IATA had recently said it would continue discussions with the incoming government, which was inaugurated in May.
Although President Bola Tinubu did not allude to the airline funds in his speech, he, however, announced that his administration would move towards unifying the country’s exchange rate, adding that this would help divert funds away from arbitrage into productive endeavours such as investment in plant, equipment and job creation.
Aduragbemi Omiyale 
Modupe Gbadeyanka