IATA Cautions FG That Some Foreign Airlines May Withdraw From Nigeria

International Air Transport Association (IATA)

Some foreign airlines may be forced to quit the Nigerian markets if nothing is done about the $790m ticket revenue

The Central Bank of Nigeria has received a warning from the International Air Transport Association (IATA) that if action is not taken to release the $790 million in ticket revenue that is currently stuck in the nation, some foreign airlines may be forced to withdraw from the Nigerian market.

Despite the poor state of their infrastructure, Lagos and Abuja airports have been ranked as the most expensive gateways in the region, according to IATA Regional Vice President, Africa & Middle East, Kamil Alawadhi, during a media presentation with African journalists at the IATA Global Media Day in Geneva, Switzerland, on Thursday.

He states that the largest amount of airline-trapped funds is currently held by the Nigerian government.

According to the IATA VP, Nigeria has the most airline blocked funds (792 million), followed by Egypt ($348 million), Algeria ($199 million), the AFI zone ($183 million), and Ethiopia ($128 million).

He asserted that although Ethiopia has devised a plan to pay off the debt, Nigeria has not yet taken any independent action.

Al-Awadhi said, “Ethiopia is seeking a way to resolve this issue even though the blocked fund is rising. The first step for us to solve these blocked funds is for both parties to engage. If parties don't engage, it is very difficult to move forward. I have not been able to engage with Nigeria's CBN Governor. He said he would engage with me when he had a solution. He is not promising but I have engaged with the Aviation Minister who is very understanding, new to the position, or maybe wowed by the situation he inherited will help to resolve the matter.

“The airlines in Africa are owed $34 million. That $34 million is blocked. Depreciation has set in on the money. They have already lost $10 million because of depreciation. That is not fair for the airlines because they have paid all the dues to the operators of the airports. Every due has been paid for. They carry Nigerian officials on these flights and they can't get their money.”