Toba Owojaiye reporting
Abuja , Nigeria
In a recent announcement, the International Air Transport Association (IATA) revealed that the Federal Government of Nigeria has made significant progress in addressing the issue of trapped airline funds. According to IATA, the government has successfully disbursed 98% of the funds, leaving only $19 million outstanding out of the initial $850 million.
Truth Live News gathered that the remaining amount is reportedly delayed due to the ongoing verification process of claims by commercial banks at the Central Bank of Nigeria (CBN). Despite this delay, IATA’s Director General, Willie Walsh, commended the efforts of the Nigerian government and the CBN in resolving the issue, emphasizing the importance of reliable air connectivity for both individuals and the economy.
IATA’s Director General, Willie Walsh, said: “We commend the new Nigerian government and the CBN for their efforts to resolve this issue. Individual Nigerians and the economy will all benefit from reliable air connectivity for which access to revenues is critical.
We are on the right path and urge the government to clear the residual $19 million and continue prioritising aviation.”
Walsh urged the government to expedite the clearance of the remaining $19 million and to continue prioritizing the aviation sector. He highlighted the positive trend globally, noting a 28% decrease in the amount of airline funds blocked for repatriation by governments worldwide. However, he stressed the urgency of addressing the remaining $1.8 billion in blocked funds to ensure the efficient operation of airlines.
Walsh mentioned that “The reduction in blocked funds is a positive development. The remaining $1.8 billion, however, is significant and must be urgently addressed.
“The efficient repatriation of airline revenues is guaranteed in bilateral agreements. Even more importantly, it is a pre-requisite for airlines—who operate on thin margins—to be able to provide economically critical connectivity. No business can operate long-term without access to rightfully earned revenues.”
The repatriation of airline revenues is not only guaranteed in bilateral agreements but is also essential for the economic viability of airlines, especially considering their thin profit margins. Walsh emphasized that access to rightfully earned revenues is crucial for airlines to maintain economically critical connectivity in the long term. Therefore, he urged governments to take prompt action in facilitating the release of trapped airline funds to support the sustainability of the aviation industry.