International Air Transport Association, IATA, has removed Nigeria from the list of countries blocking airlines funds.
IATA also stated that nine countries account for 83 per cent of the airline industry’s blocked funds, which would amount to $1.43 billion.
The development comes after the Central Bank of Nigeria (CBN) cleared foreign airlines’ trapped funds worth $831 million in June. This move has been commended by IATA, which has been advocating for the removal of barriers to airline fund repatriation.
According to IATA, nine countries are currently blocking $1.7 billion in airline funds. These countries include Pakistan, XAF Zone, Bangladesh, Algeria, Lebanon, Mozambique, Angola, Eritrea, and XOF Zone.
IATA reported that this amount represents a small improvement compared to the $1.8 billion reported at the end of April.
Commenting on the development, Director General of IATA, Willie Walsh, expressed concern over the ongoing issue of blocked airline funds.
He noted that while significant reductions in blocked funds had been seen in Pakistan, Bangladesh, Algeria, and Ethiopia over the last six months, amounts were rising in the XAF/XOF zones and Mozambique.
Walsh emphasized the need for governments to remove all barriers for airlines to repatriate their revenues from ticket sales and other activities.
He warned that if airlines cannot repatriate their revenues, they cannot be expected to provide a service, which would ultimately harm economies.
He said: “At the same time, amounts are rising in the XAF /XOF zones and Mozambique. Bolivia has also emerged as a problem, where repatriating sales revenues is becoming increasingly difficult and unsustainable for airlines.
“This unfortunate game of ‘whack-a-mole’ is unacceptable. Governments must remove all barriers for airlines to repatriate their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations.”
“No country wants to lose aviation connectivity, which drives economic prosperity. But if airlines cannot repatriate their revenues, they cannot be expected to provide a service. Economies will suffer if connectivity collapses. So, it is in everyone’s interest, including governments, to ensure that airlines can repatriate their funds smoothly.”
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Jerome Kalu
Jerome Kalu is currently the Senior Correspondent of PIJAlance in Lagos. He was previously the Campus Information Desk (CID) Editor.