The International Air Transport Association (IATA) has raised the alarm that foreign airlines’ blocked funds in Nigeria have risen to over $743.7 million.
In a letter to Nigeria’s Minister of Aviation, Hadi Sirika, dated March 14, 2023, and signed by its Area Manager, West, and Central Africa, Dr. Samson Fatokun, IATA noted that the airlines ‘s blocked funds rose from $549 million in December 2022 and $662 million in January to $743.7 million.
IATA pointed out that Nigeria has been the country with the highest amount of airlines’ blocked funds in the world.
The association stated that the increasing backlog of international airlines’ blocked funds in Nigeria was a potential threat to foreign direct investment into the country and could affect the operations of airlines leading to job losses.
It urged the Minister to intervene in resolving the issues, even as it appealed to President Muhammadu Buhari to clear all airlines blocked funds before leaving office.
Channels Television reports that at a meeting with the IATA and foreign airlines operators in Abuja to discuss the issues, Sirika said the issue of blocked funds sits with the Central Bank of Nigeria and is not what the ministry can handle alone.
He urged international airline operators to be very considerate when dealing with the issues bearing in mind the effects of COVID-19 and the recession the country had experienced.