Blocked funds in the aviation industry have rose by 47% from $1.5 billion in April 2022 to $2.27 billion in April 2023, according to the latest figures released by the International Air Transport Association (IATA) and Nigeria remains at the top of the blocked airline funds country list with $812 million.
Although the industry has almost fully recovered from the pandemic, trapped airline funds continue to rise, so IATA is repeatedly urging the responsible governments to address the situation for operations to continue efficiently.
IATA is concerned with the rapidly rising levels of blocked funds as it substantially impacts air connectivity in the affected markets. The top five countries account for 60% of blocked funds, and following Nigeria on the list is Bangladesh with $214.1 million, Algeria with $196.3 million, Pakistan with $188.2 million, and Lebanon with $141.2 million.
Compared to the figures released in March 2023, the amount of trapped funds has increased by several million dollars. Nigeria's debt has increased by $69 million, while Algeria's increased by $31 million.
Nigeria raises many concerns as it holds more funds than the other top five countries combined. The other countries are responsible for $739 million of trapped funds, while Nigeria’s $812.2 million is over $72 million higher, meaning about 35.7% of blocked world airline funds are in Nigeria.