Foreign airlines’ trapped funds hinder aviation’s contribution to economy
By Jeph Ajobaju, Chief Copy Editor
Foreign airlines’ funds held up in Nigeria have grown to $783 million, the International Air Transport Association (IATA) has confirmed, to put pressure on the Central Bank of Nigeria (CBN) to release the money as directed by President Bola Tinubu.
A statement issued by IATA Vice President for Africa and Middle East, Kamil Al Awadhi, disclosed the sum as well as engagements with Abuja to resolve the blockade.
Inability to repatriate funds is one of the reasons some foreign airlines have closed down their operations in Nigeria, the largest air travel market in Africa.
“Al Awadhi also met with Nigeria’s new Minister of Aviation and Aerospace Development … Festus Keyamo, during which he called on the new government for continued, but closer, consultation with the industry while developing short- and long-term solutions for foreign exchange access to both domestic and foreign carriers.
“As of August 2023, Nigeria accounts for $783m of airlines’ blocked funds, ” the statement said.
IATA disclosed it is impressed with the commitment of the Federal Airports Authority of Nigeria (FAAN) to improving infrastructure and service levels at the Murtala Muhammad International Airport (MMIA), Lagos within 12 months.
The body had last year raised concerns over a number of safety, security, and passenger service level challenges at the airport.
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IATA said a meeting last Friday between IATA and FAAN Managing Director/Chief Executive Officer Kabir Mohammed culminated in FAAN undertaking to expedite improvements in these areas under a corrective action plan, per The PUNCH.
“We welcome FAAN’s commitment to upgrade Lagos airport. It is the main domestic and international hub connecting Nigeria with the rest of Africa and beyond and needs to keep up with demand,” Awadhi stressed.
“This strategic focus not only enhances the aviation sector but also serves as a catalyst for Nigeria’s broader economic and social advancement. IATA stands ready to support the FAAN with expertise to ensure international standards are met through the corrective action plan.
“Safety, security, and efficient infrastructure are critical for a well-functioning air transport system. So is the ability of airlines to have access to the revenues they generate in Africa.”
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