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IATA Fumes Over $143.8m Blocked Airline Funds In Nigeria

Ololade Omosan-Agie

The International Air Transport Association (IATA) has said that the Nigerian government has blocked airline funds amounting to $143.8m.

The funds are from the sale of tickets, cargo space, and other activities., IATA said in its report released on Thursday.

The aviation association said globally, such blocked funds have grown to $1bn in 20 countries.

IATA said, “Approximately $963m in airline funds are being blocked from repatriation in nearly 20 countries. Four countries: Bangladesh ($146.1 million), Lebanon ($175.5m), Nigeria ($143.8m), and Zimbabwe ($142.7m), account for over 60% of this total, although there has been positive progress in reducing blocked funds in Bangladesh and Zimbabwe of late.”

The association said the move by different governments is against international conventions and could slow the recovery of travel and tourism.

IATA “urged governments to abide by international agreements and treaty obligations to enable airlines to repatriate close to nearly $1bn in blocked funds from the sale of tickets, cargo space, and other activities.”

“Airlines will not be able to provide reliable connectivity if they cannot rely on local revenues to support operations.

“That is why it is critical for all governments to prioritize ensuring that funds can be repatriated efficiently. Now is not the time to score an ‘own goal’ by putting vital air connectivity at risk,” said Willie Walsh, IATA’s Director General.

Walsh added, “We encourage governments to work with industry to resolve the issues that are preventing airlines from repatriating funds. This will enable aviation to provide the connectivity needed to sustain jobs and energize economies as they recover from COVID-19.”

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