Foreign airlines operating in Nigeria are having difficulties repatriating funds back to their operational base. As a result of this, the sum of $53 million, which is the proceeds from sales of foreign airlines’ ticket is trapped in Nigeria.
This development is due to the inability of the airlines to access Foreign Exchange (FOREX) due to the COVID-19 pandemic
This was disclosed by the International Air Transport Association’s (IATA) Regional Vice President for Africa and the Middle East (AME),
Mr. Muhammed Albakri, at its 76th Annual General Meeting.
He stated that Nigeria and other African countries have blocked funds that amounted to $516 million.
He said, “IATA has been at the forefront of the campaign, soliciting governments’ support for the aviation industry in order to salvage the situation.”
Nigeria is not the only country with trapped funds but fourth among 12 others with similar issues.
Others African states are Zimbabwe $160 million; Eritrea $79 million; Algeria $54 million; Ethiopia $52 million; Sudan $45 million; Libya $27 million; XAF Zone $27 million; Angola $9 million; Mozambique $6 million; Burundi $3 million and Zambia $1 million.
According to reports, International airlines are owed $824 million globally with $516 million out of $824 million in blocked funds trapped in Africa. This means the rest of the world accounts for the remaining $308 million of the blocked funds.
