The International Air Transport Association (IATA) is praising Nigeria for making major headway in clearing airline funds that were previously stuck in the country. This had become a major hurdle for airlines operating there.
Back in June 2023, a staggering U.S. $850 million of airline revenue was stalled in Nigeria. This made it tough for airlines to get their money back in U.S. dollars, forcing them to cut back on flights and even leading some to temporarily halt operations altogether.
Thankfully, the new Nigerian government and the Central Bank of Nigeria (CBN) have stepped up to tackle the issue. According to IATA, a significant 98 percent of the trapped funds, or U.S.$831 million, have been successfully cleared as of April 2024.
There is still a small hurdle to overcome. The CBN is currently verifying the remaining U.S. $19 million due to some outstanding claims filed by commercial banks. IATA is urging a swift resolution to this final step to completely clear the issue.
“We commend the new Nigerian government and the Central Bank of Nigeria for their efforts to resolve this issue,” said Willie Walsh, IATA’s Director General. “We are on the right path and urge the government to clear the residual U.S.$19 million and continue prioritizing aviation.”
This positive development is expected to mend relations between Nigerian authorities and airlines. It could also lead to more investment in the Nigerian aviation sector, which would benefit both travelers and the overall economy.
—Ezinwanne Onwuka reports for TruthNigeria from Abuja.
