From $575m in March, funds belonging to foreign airlines which are trapped in Nigeria have increased to $591million, the International Air Transport Association (IATA) disclosed Thursday.
Out-going Director-General of IATA, Mr. Tony Tyler, who gave the figure at the ongoing 72nd Annual General Meeting (AGM) of the association urged Nigeria and other countries where airlines’ funds are trapped to respect international agreements obliging them to ensure airlines are able to repatriate their revenues.
Other countries where airline funds are trapped are Venezuela which tops the list with $3.7b (16 months), Nigeria $591m (7 months); Sudan $360million (4 months); Egypt $291 million (4 months) and Angola $237 million (7 months).
United Airlines has announced suspension of operations in Nigeria with effect from this month over issues relating to funds’ repatriation.
The problem started last year following high demand for dollars without commensurate increase in supply of the foreign currency.
The IATA chief, in his address, at the meeting said the association monitored trapped funds globally, the sum of which exceeds $5 billion.
The top two countries blocking the repatriation of airline funds, according to him, are Venezuela and Nigeria.
He said, “Blocked funds are a problem in a diverse group of countries, some of them undergoing significant economic challenges particularly with a fall-off in oil revenues. But one thing all five nations have in common is the urgent need for robust air connectivity that is being hampered by airlines’ difficulty in repatriating funds.
“Strong connectivity is an economic enabler and generates considerable economic and social benefits–something that struggling economies need more than ever. It is in everybody’s interest to ensure that airlines are paid on-time, at fair exchange rates and in full”.
With United Airlines pulling out of Nigeria, there were fears last week that British Airways which has 80 years history in the country might also pull out, but the carrier has denied it is pulling out, saying it considers Nigeria a strategic market
