The International Air Transport Association (IATA) revealed on Tuesday that trapped fund belonging to foreign airlines has increased to $550m.
This is despite the Central Bank of Nigeria (CBN)’s recent intervention to clear part of the trapped funds.
The IATA also revealed the fund is about half of the $1.1bn blocked funds in Africa and the Middle East.
IATA Regional Vice President for Africa and the Middle East, Mr Kamil Ala Wadhi disclosed this when he paid a courtesy visit to the House of Representatives Committee Chairman on Aviation, Rep. Nnolim Nnaji.
A statement from Nnaji’s office quoted him as appealing to IATA to prevail on its member airlines to show understanding as the various organs of government were making efforts to ensure that their ticket proceeds were duly remitted.
About three months ago, the CBN intervened by releasing half of the trapped fund at a time it was about $450m.
However, most of the airlines claimed they did not get the part payment and as a result, Emirates Airlines suspended flights to Nigeria while other airlines are threatening to follow suit.
The committee chairman reminded his guests that the prevailing situation was in due to the global economic meltdown while assuring him that the federal government through the CBN had put in place a mechanism for the liquidation of the blocked funds.
