IATA Sounds Alarm: Nigeria’s $802M Trapped Funds Threaten To Ground Airlines

EKO HOT BLOG reports that the International Air Transport Association (IATA) has warned that airlines might be forced to exit Nigeria over the $802 million trapped funds in the country.

The Switzerland-based airline association expressed concern that the situation could hinder air connectivity, economic growth, and the development of Nigeria’s aviation sector.

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Willie Walsh, the Director-General of IATA, raised the alarm on Monday while launching “Focus Africa,” a new initiative aimed at strengthening aviation’s contribution to Africa’s economic and social development. The project will also improve passengers’ and shippers’ connectivity, safety, and reliability.

Walsh noted that airlines may be forced to reduce their services in countries blocking funds, and this could significantly affect the growth of African aviation. He urged the Nigerian government to address the issue to ensure that the aviation industry in Nigeria and the continent thrives.

According to IATA Chairperson-designate and RwandAir Chief Executive Officer Yvonne Makolo, Nigeria has the highest blocked funds in Africa and the world, with a total of $802 million.

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She further disclosed that the total amount of blocked funds in Africa is $1.6 billion, highlighting the urgent need for the Nigerian government to resolve the issue to avoid a catastrophic impact on the country’s aviation sector.