The International Air Transport Association (IATA), says that about 98% of foreign airlines’ trapped funds in Nigeria have been repatriated by the international carriers.
The Director-General of IATA, Willie Walsh, in a statement on Sunday also disclosed that as of June 2023, Nigeria had blocked funds totaling $850 million, with attendant considerable impact on the operations and financial health of airlines operating in the country.
Recall that the Central Bank of Nigeria (CBN) said it has concluded all payments of foreign airlines trapped funds despite current foreign exchange crisis.
But Mr Walsh said that 98% of the $850 million had been paid while the balance of $19 million or two per cent of the funds, is still outstanding.
His statement reads: “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 U.S. dollars, and the high volume of blocked funds led some airlines to reduce their operations and one carrier to temporarily cease operations to Nigeria, which severely impacted the country’s aviation industry.
“However, as of April 2024, 98 percent of these funds have been cleared. The remaining $19 million is due to the Central Bank of Nigeria’s ongoing verification of outstanding forward claims filed by the commercial banks.
“We commend the new Nigerian government and the CBN 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.”
The remaining $19 million is due to the Central Bank of Nigeria’s ongoing verification of outstanding forward claims filed by the commercial banks.
