NewsNigeriaTransportationNigeria Clears 98% of Trapped Airline Funds, IATA Reports

The International Air Transport Association, IATA, has commended the Nigerian government for resolving a major issue that had been impacting airlines. According to IATA, Nigeria has successfully cleared 98 per cent of the funds previously trapped in the country, which had significantly hampered airlines’ operations.

At its peak in June 2023, the amount of blocked airline funds in Nigeria reached a staggering US$850 million. This made it difficult for airlines to repatriate their earnings in US dollars, leading to reduced flight frequencies and even the temporary suspension of operations by some carriers.

However, the new Nigerian government and the Central Bank of Nigeria, CBN, have made significant strides in addressing the problem. As of April 2024, IATA reports that 98 per cent of the trapped funds, amounting to US$831 million, have been cleared.

The remaining US$19 million is currently undergoing verification by the CBN due to outstanding forward claims filed by commercial banks. IATA has urged for the swift completion of this process to fully resolve the issue.

“We commend the new Nigerian government and the Central Bank of Nigeria for their efforts to resolve this issue,” said Willie Walsh, Director General of IATA. “We are on the right path and urge the government to clear the residual US$19 million and continue prioritizing aviation.”

The successful resolution of this issue is expected to improve relations between Nigerian authorities and airlines. It could also lead to increased investment in the Nigerian aviation sector, potentially benefiting both passengers and the economy.