GENEVA, Switzerland – The International Air Transport Association (IATA) has warned the Nigerian government sternly, stating that airlines may halt operations in the country due to $802 million in trapped funds.
The Switzerland-based Airlines Association underscored the potential negative impact of this situation on air connectivity, economic growth, and Nigeria’s aviation sector development.
IATA Director-General, Willie Walsh, addressed the issue on Monday, April 3, 2023, during the launch of “Focus Africa,” an initiative to bolster aviation’s role in the continent’s economic and social development. The project also intends to enhance passenger and shipper connectivity, safety, and reliability.
Walsh expressed his concerns: “Airlines may be forced to reduce their service in the countries blocking funds; this is a significant issue to airlines and IATA. It can affect African aviation’s growth.”
Yvonne Makolo, the IATA chairperson-designate and RwandAir chief executive officer, revealed that Nigeria has the most blocked funds in Africa and globally. She added that the total amount of blocked funds in Africa is $1.6 billion, with Nigeria accounting for $802 million.
The Nigerian government has yet to respond to the warning or outline any measures to address the issue. If the situation remains unresolved, the country’s aviation industry could face significant setbacks, with repercussions for the broader African aviation sector.
