The International Air Transport Association (IATA) has voiced its displeasure with the Nigerian government’s decision to prevent international airlines from remitting $450 million (N188.6 billion) in ticket sales proceeds to their home nations.
On Sunday, IATA, the Geneva-based trade organisation representing over 200 international carriers, held a press conference to commemorate the start of its 78th Annual General Meeting and World Air Transport Summit in Doha, Qatar.
Kamil Al-Alawadhi, IATA’s Regional Vice President for Africa and the Middle East, said the Federal Government’s decision was regrettable and that the development might harm Nigeria’s aviation industry.
Foreign airlines’ blocked funds in Nigeria increased from $208 million in the third quarter last year to $283 million in the first quarter of this year.
However, Al-awadhi told journalists that aviation was critical to Nigeria’s economic development and that the CBN needed to allow foreigners to repatriate ticket sales proceeds.
According to him, the aviation industry is responsible for creating thousands of employees, and the Nigerian government would be irresponsible to deny airlines the right to repatriate their earnings.
Al-Awadhi said he travelled to Nigeria to talk with government officials about the frozen cash, but he had yet to receive a commitment from the government.
He did say, though, that IATA officials would be visiting the nation soon to discuss the situation.
The IATA VP said, “Nigeria needs to start reducing the backlog. The Central Bank of Nigeria was not forthcoming on the blocked funds. It is sad that Nigeria owes the bulk of the entire blocked funds. This is very unacceptable”.
“We heard that there is a shortage of dollars. It has been a hectic ride. We met with the Vice-President. We will keep checking. This is going to damage the image of the country. We are hoping that it will go down well. The figure is huge”.
According to him, the development happens when carriers come out of the devastating COVID-19 pandemic, which has affected carriers globally.
Al-Awadhi said the situation had forced airlines to get funds from their reserves to finance operations.
