Nigeria owes foreign airlines $147m

Nigeria is owing foreign airlines about $147million, the International Air Transport Association (IATA) said yesterday.

The association representing some 290 airlines in a statement urged governments to abide by international agreements and treaty obligations to enable airlines to repatriate close to nearly $1 billion in blocked funds from the sale of tickets, cargo space and other activities.

The blocked funds accumulated from the sale of tickets in naira which would, in turn, be repatriated by the airlines in dollars through the Central Bank of Nigeria.

Daily Trust however reports that the federal government was able to clear the backlog which ran to over $600m in 2018.

It was learnt that the fund is on the rise again following the decline in the foreign reserve of Nigeria, raising concerns about Nigeria’s inability to meet its obligation to the foreign airlines.

From the figure released by

IATA yesterday, $963 million in airline funds are being blocked from repatriation in nearly 20 countries.

Four countries: Bangladesh ($146.1 million), Lebanon ($175.5 million), Nigeria ($143.8 million), and Zimbabwe ($142.7 million), account for over 60% of this total, although there has been positive progress in reducing blocked funds in Bangladesh and Zimbabwe of late.

IATA’s Director General, Willie Walsh, said, “Governments are preventing nearly $1 billion of airline revenues from being repatriated. This contravenes international conventions and could slow the recovery of travel and tourism in affected markets as the airline industry struggles to recover from the COVID-19 crisis.

“Airlines will not be able to provide reliable connectivity if they cannot rely on local revenues to support operations. That is why it is critical for all governments to prioritize ensuring that funds can be repatriated efficiently. Now is not the time to score an ‘own goal’ by putting vital air connectivity at risk.”