The International Air Transport Association (IATA) has confirmed that foreign airlines revenue not yet repatriated from Nigeria has risen to $812.2 million.
This was disclosed by the IATA Regional Vice-President, Africa and Middle East, Kamil Al- Awadhi at the on-going 79th AGM and World Air Transport Summit in Istanbul, Turkey.
He warned that rapidly rising levels of blocked funds are a threat to airline connectivity in the affected markets, disclosing that the industry’s blocked funds have increased by 47 per cent to $2.27 billion in April 2023 from $1.55 billion in April 2022.
IATA said the top five countries account for 68.0 per cent of blocked funds. These include Nigeria ($812.2 million), Bangladesh ($214.1 million), Algeria ($196.3 million), Pakistan ($188.2 million), Lebanon ($141.2 million) and Ethiopia ($126 million).
Al- Awadhi explained that the countries with the trapped funds were unable to pay the airlines for different reasons and stated that Nigeria had been responsive in helping the airlines repatriate their revenues but may have delayed due to the transition to a new government from the Muhammadu Buhari administration.
He expressed hope that before the end of one month, the President Bola Tinubu administration would facilitate airlines to repatriate 50 per cent of the trapped revenue and in the next six months exhaust the repatriation of all the funds.
Al- Awadhi lamented that after the COVID-19 airlines came out with little cash so, they are in dire need of operational funds; therefore, holding down their revenue is pulling them down, as the world body urged governments to abide by international agreements and treaty obligations to enable airlines to repatriate these funds arising from the sale of tickets, cargo space, and other activities.
Reacting to the trapped funds, IATA’s Director General, Willie Walsh said, “Airlines cannot continue to offer services in markets where they are unable to repatriate the revenues arising from their commercial activities in those markets. Governments need to work with industry to resolve this situation so airlines can continue to provide the connectivity that is vital to driving economic activity and job creation.”
Appraising airlines performance in Africa and Middle East, Al- Awadhi said there have been improvement in air transport in Africa and Middle East, especially in the Middle East and disclosed that IATA has prioritized areas it would help to boost air transportation in the continent.
IATA said that it would help airlines in Africa improve their operational safety through a data drive collaborative programme to reduce safety incidents and accidents, in the air and on ground.
It said that it would facilitate the growth of efficient, secure and cost-effective aviation infrastructure and in the area of connectivity, IATA said that it would promote the liberalization of intra-African market access through the Single African Air Transport Market (SAATM).
IATA also assured that in the area of finance and distribution it would accelerate the implementation of secure, effective and cos-efficient financial services and adoption of modern retailing standard.
To enhance sustainability, IATA said it would assist Africa’s air transport industry to achieve the “Net-zero by 2050” emissions target agreed to by industry and the UN’s International Civil Aviation Organisation (ICAO), adding that it would promote aviation-related career paths and ensure a steady supply of diverse and suitably skilled talent to meet the industry’s future needs.
