The International Air Transport Association‘s most recent estimate places the total amount of trapped foreign airline funds in Nigeria at $802 million.
To this end, IATA has alerted the Nigerian government that the situation might impede air connectivity, economic expansion, and the growth of the nation’s aviation industry.
“Focus Africa,” a new initiative aimed at enhancing aviation’s contribution to Africa’s economic and social development, was introduced on Monday by IATA Director-General Willie Walsh. Additionally, the project will increase the connectivity, reliability, and safety of both shippers and passengers.
“This is a very important issue for airlines and IATA because airlines may be forced to reduce their service in the countries blocking funds. It may have an impact on the expansion of African aviation, according to Walsh.
Nigeria was previously listed as the nation with the highest amount of blocked funds in both Africa and the world by IATA Chairperson-designate and Chief Executive Officer of RwandAir, Yvone Makolo.
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She claims there are $1.6 billion worth of blocked funds in Africa, of which $802 million is in Nigeria.
66% of blocked funds were in Africa, lamented Kamil Al Awadhi, Regional Vice President for Africa & Middle East, IATA.
He identified blocked funds as a significant issue that could impact the Single African Air Transport Market project and limit the potential for growth of the continent’s aviation industry.
“One of the biggest problems that will impact aviation is blocked funds. The amount of funds that have recently been blocked has increased 10%. The total amount of funds blocked is enormous. The IATA VP continued, “This is one of the issues we need to address to move forward.
Al Awadhi stated that IATA had several interactions with the Nigerian government regarding the blocked funds and added that the association would continue talks with the new administration, which is expected to take office in May.
Hadi Sirika, the aviation minister, declared last month that the government would hasten the repatriation of frozen funds.
Earlier on Monday, IATA DG Walsh introduced “Focus Africa,” saying it would bring together private and public stakeholders to produce measurable progress in six areas.
