The International Air Transport Association (IATA) confirmed that the total funds belonging to the foreign airlines currently trapped in Nigeria have increased to $802 million.
The Switzerland-based trade association of World Airlines warned the Nigerian government that if steps are not taken to address the lingering crisis, the aviation industry in Nigeria would be faced with issues that may throw the sector into economic disaster.
The issue of trapped funds belonging to foreign airlines operating in Nigeria has continued to raise dust in the international aviation community for over a year.
In August 2022, the IATA raised an alarm intimating to relevant stakeholders that the trapped funds had increased to $464 million. The body had noted then that the amount had increased by $14 million from the $450 million which was withheld as of May 2022.
The value of the trapped funds has since then, witnessed a steady increase to date. As of January 2023, the number of trapped funds belonging to foreign airlines in Nigeria had peaked at $743 million, and $802 million most recently.
According to the Director-General, of IATA, Willie Walsh, the development may force Airlines to cut down on their operations in any country guilty of blocking access to aviation funds, a move which is capable of affecting the growth of African aviation.
“Airlines may be forced to reduce their service in the countries blocking funds; this is a very important issue to airlines and IATA. It is capable of affecting the growth of African aviation,” Walsh noted.
Nigeria’s notoriety in the matter is, however, a thing of concern as the country takes the position of the country with the highest blocked funds in Africa and the world.
This was confirmed by the IATA Chairperson-designate and RwandAir Chief Executive Officer, Yvonne Makolo who revealed that the total amount of blocked funds in Africa is $1.6 billion, out of which Nigeria has $802 million.
In Africa, Algeria was listed as the country with the highest blocked funds.