According to the International Air Transport Association, the blocked funds of foreign airlines operating in Nigeria have risen to $743,721,097.
As of December 2022, the fund was $549m and rose to $4662m in January this year.
The amount owed is contained in a letter titled: “Special appeal on airlines, blocked funds in Nigeria” signed by the Area Manager of West and Central Africa, Dr. Samson Fatokun, and addressed to the Minister of Aviation, Hadi Sirika.
According to the letter dated 14th March, IATA and the global airline community are seeking the intervention of the Minister to resolve the airlines’ blocked funds issues in Nigeria.
The association, during a visit to the Minister in Abuja on Tuesday, stated that Nigeria has in the last year been the country with the highest amount of airline-blocked funds in the world.
It also noted that some airlines have resolved to reduce the number of their frequency to mitigate the impact of the increasing backlog of their funds in Nigeria.
It also said the reduction in the frequency of flights or reduction in available seats sold to Nigeria could impact negatively businesses and in turn, lead to job loss.
The association urged the Minister to use his office and his relationship with President Muhammadu Buhari to ensure that the blocked funds in Nigeria are cleared before the end of this administration.
The letter reads: “The International Air Transport Associaton (IATA) presents its compliments to the Ministry of Aviation of the Federal Republic of Nigeria. We would like to thank you for your continuous support for the growth of air transport in Nigeria and for the actualization of its role as catalyst for the growth of the Nigerian economy.
“IATA and the global airline community would like to appeal for your special intervention for the resolution of airlines blocked funds issue in Nigeria.
“For over a year, Nigeria has been the country with the highest amount of airline blocked funds in the world. Please find attached the comparative table of airlines’ blocked funds by country.
“Moreover, as of January 2023, airlines blocked funds in Nigeria have increased to $743,721,092 from $662m in January 2023 and $549m in December 2022.”
