The lingering controversy surrounding Nigeria’s indebtedness to foreign airlines has finally been resolved, with the International Air Transport Association (IATA) confirming that Nigeria has paid off 98% of the trapped funds.
During a world press conference at the ongoing 80th Annual General Meeting in Dubai, United Arab Emirates, the Director General of IATA, Willie Walsh, announced the development.
Walsh stated, “As of April 2024, 98% of these funds have been cleared. The remaining $19 million is due to the Central Bank’s ongoing verification of outstanding forward claims filed by the commercial banks.”
Commending the efforts of the new Nigerian government and the Central Bank of Nigeria in addressing the issue, Walsh emphasized the importance of reliable air connectivity for the economy and individual Nigerians, highlighting the critical role of access to revenues.
While Nigeria has now cleared its debt to foreign airlines, Walsh pointed out that eight other countries are still responsible for 87% of blocked funds amounting to $1.6 billion. Nigeria had previously topped the list of the most indebted countries.
Countries still holding onto trapped funds include Pakistan, Bangladesh, Algeria, XAF Zone, Ethiopia, Lebanon, Eritrea, and Zimbabwe. Walsh highlighted the severe situation in Pakistan and Bangladesh, where airlines are unable to repatriate $731 million and $320 million of the foreign carriers’ funds, respectively.
