Nigeria’s debt to foreign airlines rises from $549m in December 2022
By Jeph Ajobaju, Chief Copy Editor
Foreign airlines’ funds withheld by Nigeria have risen to more than $743.7 million, according to the International Air Transport Association (IATA) which has written to Aviation Minister Hadi Sirika to complain about the embarrassment.
IATA disclosed this in a letter written to the Minister of Aviation, Hadi Sirika in Abuja and obtained by Channels Television.
The letter, dated March 14, 2023, was signed by IATA Area Manager, West, and Central Africa, Samson Fatokun. It shows that the funds grew from $549 million in December 2022 and $662 million in January 2023 to $743.7 million in February.
For over a year, IATA noted, Nigeria has been the country with the highest amount of blocked airlines’ funds in the world.
It warned the withheld funds are a potential threat to foreign direct investment into Nigeria and could affect the operations of airlines leading to job losses.
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Matter with CBN
IATA appealed to Sirika to intervene in the matter and also urged President Muhammadu Buhari to clear all the withheld funds before leaving office on May 29, per reporting by Vanguard.
But Sirika explained at a meeting with IATA and foreign airline operators in Abuja the blocked funds are a matter for the Central Bank of Nigeria (CBN) and is not what the ministry can handle alone.
He urged international airline operators to be very considerate when dealing with the issues bearing in mind the effects of COVID-19 and the recession Nigeria experienced.
