Foreign airlines blocked funds in Nigeria have risen to over $744 million as per International Air Transport Association (IATA). In a letter dated March 14, 2023, IATA wrote to Nigeria’s Minister of Aviation, Hadi Sirika in Abuja and disclosed the information.
“For over a year, Nigeria has been the country with the highest amount of airline-blocked funds in the world. The amount owed has risen from $464 million in July last year,” IATA’s letter said.
According to IATA, the increasing backlog of international airlines’ blocked funds in Nigeria is a potential threat to foreign direct investment into the country and could affect the operations of airlines leading to job losses.
IATA has appealed to the Minister of Aviation to intervene in resolving the issue and called on President Muhammadu Buhari to clear all airlines blocked funds before leaving office.
Foreign airlines have cut the number of seats available for sale in Nigeria and frequency of flights in a bid to slow the rising debt burden, IATA said.
Emirates Airlines halted flights to Nigeria in August 2022 due to challenges in repatriating funds.