International Air Transport Association, IATA, said the Federal Government has paid 98 per cent of trapped airlines’ funds, adding that only $19M out of $850 million is outstanding.
IATA hailed the Nigerian government for clearing 98 per cent
of airlines’ trapped funds, which the carriers had not been able to repatriate.
It explained that what was left was being delayed by ongoing
verification of claims made by commercial banks at the Central Bank of Nigeria,
CBN.
Reiterating the call for governments to remove all
impediments to airlines repatriating their revenues from ticket sales, IATA’s
Director General, Willie Walsh, said: “We commend the new Nigerian government
and the CBN for their efforts to resolve this issue. Individual Nigerians and
the economy will all benefit from reliable air connectivity for which access to
revenues is critical.
“We are on the right path and urge the government to clear
the residual $19 million and continue prioritising aviation.”
While reporting a 28 per cent decrease in the amount of
airline funds blocked from repatriation by governments across the world, the
body stated that the total blocked funds at the end of April stood at
approximately $1.8 billion, a reduction of $708 million (28 per cent) since
December 2023.
Walsh added. “The reduction in blocked funds is a positive
development. The remaining $1.8 billion, however, is significant and must be
urgently addressed.
“The efficient repatriation of airline revenues is
guaranteed in bilateral agreements. Even more importantly, it is a
pre-requisite for airlines—who operate on thin margins—to be able to provide
economically critical connectivity. No business can operate long-term without
access to rightfully earned revenues.”