The International Air Transport Association has claimed the blocked funds of foreign airlines operating in Nigeria have risen to $812.2 million.
The association warned that rapidly rising levels of blocked funds constitute a threat to airline connectivity in the affected markets.
According to a release on Sunday by International Air Transport Association (IATA), the industry’s blocked funds have increased by 47 per cent to $2.27 billion in April 2023 from $1.55 billion in April 2022.
It also said five countries account for 68.0 per cent of blocked funds with Nigeria topping the chart.
IATA’s Director-General, Willie Walsh, urged governments to collaborate with industry players to address the crisis.
He said: “Airlines cannot continue to offer services in markets where they are unable to repatriate the revenues arising from their commercial activities in those markets.
“Governments need to work with industry to resolve this situation so airlines can continue to provide the connectivity that is vital to driving economic activity and job creation”.
On the countries with the highest amount of blocked funds, IATA stated: “The top five countries account for 68.0 per cent of blocked funds. These comprise Nigeria $812.2 million, Bangladesh $214.1 million, Algeria $196.3 million, Pakistan $188.2 million and Lebanon $141.2 million”.
The association urged governments to abide by international agreements and treaty obligations to enable airlines to repatriate the funds arising from the sale of tickets, cargo space, and other activities.
