Nigerian Govt Has Cleared 98% Foreign Airlines Trapped Funds – IATA

International Air Transport Association (IATA) stated that nearly 98% of foreign airlines’ funds, which were stuck in Nigeria, have been repatriated by international carriers in less than a year.

Gatekeepers News reports that the Director-General of IATA, Willie Walsh, revealed this in a statement on Sunday.

Walsh pointed out that as of June 2023, Nigeria had blocked funds amounting to $850 million, significantly affecting the operations and financial stability of airlines operating in the country.

“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,” Walsh said.

This development comes after the Central Bank of Nigeria announced that it has successfully completed payments of the trapped funds of foreign airlines, despite the foreign exchange crisis.