Good News as Nigeria Finally Exits List of Countries With Debt to Airlines
- Nigeria has been removed from the list of countries where a significant amount of airline funds is blocks
- According to a report, governments across some countries are blocking the repatriation of $1.7 billion in airline funds
- An IATA report stated that the amount is a slight improvement over the $1.8 billion reported at the end of April
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The International Air Transport Association (IATA) study showed that Nigeria is no longer on the list of nations where a sizable portion of airline funds are blocked.
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The group that represents over 340 airlines, which account for over 80% of all air travel worldwide, revealed that as of the end of October 2024, governments are preventing $1.7 billion in airline funds from being repatriated.
In contrast to the $1.8 billion reported at the end of April, it said, this represents a minor improvement, Daily Trust reported.
“Over the last six months, we have seen significant reductions in blocked funds in Pakistan, Bangladesh, Algeria and Ethiopia.
“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,” said Willie Walsh, IATA’s Director General.
Nigeria exits list
According to IATA, 83% of the $1.43 billion in frozen funds in the airline sector come from nine different countries.
Nigeria was praised for removing about $800 million in frozen payments, despite being a significant member of the list.
According to the release, Pakistan continues to top the list of blocked funds countries at $311 million.
What countries must do
According to the statement, the Central Bank must keep giving airlines' access to foreign exchange top priority in accordance with its international treaty duties.
It noted that around $1 billion in airline funds that have been prevented from repatriation are in African nations. That represents almost 59% of the total worldwide.
Significant decreases in blocked money have occurred in Algeria ($193 million from $286 million in April) and Ethiopia ($43 million from $149 million in April) during the past six months.
At the same time, the biggest gains were caused by Mozambique (+$84 million), XAF Zone (+$84 million), and XOF Zone (+$73 million).
Nigeria finally pays off debt to airlines
Legit.ng reported that according to the International Air Transport Association (IATA), Nigeria has paid 98% of the airlines with funds delayed in the country and has asked for the final clearance of the remaining 2%.
In a report published this day, IATA Director General Willie Walsh stated that the total amount of airline funds that governments are blocking from repatriation has dropped by 28%.
By the end of April 2024, he calculated, the total amount of frozen funds was approximately $1.8 billion, down $708 million (28%) from December 2023.
Source: Legit.ng
