The Switzerland-based trade association of world airlines, the International Air Transport Association, IATA, has raised concern over increasing foreign airlines trapped funds in Nigeria.
The association said the total amount of foreign airlines’ trapped funds in Nigeria has risen to $802m. It warned the Nigerian government that the situation could hamper air connectivity, economic growth, and the development of the country’s aviation sector.
Speaking at the launching “Focus Africa”, a new initiative, the Director-General of IATA, Willie Walsh, said airlines may be forced to reduce their service in the countries blocking funds.
He said this is a very important issue to airlines and IATA because it is capable of affecting the growth of African aviation.
On her part, IATA Chairperson-designate and RwandAir Chief Executive Officer, Yvone Makolo, listed Nigeria as the country with the highest blocked funds in Africa and the world.
According to her, the total amount of blocked funds in Africa is $1.6bn, out of which Nigeria has $802m. She listed Algeria as the country with the highest blocked funds in Africa.
The Regional Vice President for Africa and Middle East, IATA, Kamil Al Awadhi, lamented that 66 per cent of blocked funds were in Africa.
He listed blocked funds as a big issue that could affect the Single African Air Transport Market project and hamper the growth potential of Africa’s aviation sector.
“Blocked funds is one of the biggest issues that will affect aviation. There has been a 10 per cent increase in blocked funds recently. The total amount of blocked funds is huge. This is one of the things we need to address to move forward,” the IATA VP added.
Al Awadhi said IATA had had several engagements with the Nigerian government on the blocked funds, noting that the association would continue discussions with the incoming government due to be inaugurated in May.
