As of August 2023, Nigeria has accumulated $783 million in blocked funds from foreign airlines, as reported by the International Air Transport Association (IATA). This information comes from a statement issued by the trade association. The statement also mentioned that IATA’s Regional Vice-President for Africa and the Middle East, Kamil Al Awadhi, has been in discussions with the Federal Government to find a resolution to this ongoing issue. As previously reported by The PUNCH, foreign airlines operating in Nigeria have faced challenges repatriating their commercial revenue due to a prolonged foreign exchange shortage..
The statement conveyed that Mr. Al Awadhi held discussions with Nigeria’s new Minister of Aviation and Aerospace Development, Honorable Minister Festus Keyamo. During this meeting, he urged the new government to engage in closer consultation with the aviation industry while developing both short- and long-term solutions to address foreign exchange access issues faced by domestic and foreign carriers. As of August 2023, Nigeria has accumulated $783 million in blocked funds from airlines.
The statement also highlighted the International Air Transport Association’s (IATA) satisfaction with the commitment of the Federal Airports Authority of Nigeria (FAAN) to improve infrastructure and service levels at Lagos’s Murtala Muhammad International Airport within a one-year timeframe. It noted that IATA had previously expressed concerns about safety, security, and passenger service issues at the Lagos airport. A high-level meeting between IATA and FAAN, represented by Managing Director/Chief Executive Officer Kabir Mohammed, resulted in FAAN committing to expedite improvements in these areas through a corrective action plan.
Kamil Al Awadhi, IATA’s Regional Vice-President for Africa and the Middle East, stated, “We appreciate FAAN’s dedication to upgrading Lagos airport, which serves as the primary domestic and international gateway connecting Nigeria to the rest of Africa and beyond. This focus not only benefits the aviation sector but also acts as a catalyst for Nigeria’s broader economic and social progress. IATA is ready to provide expertise to support FAAN in meeting international standards through the corrective action plan. Safety, security, and efficient infrastructure are vital for a well-functioning air transport system, as is airlines’ ability to access the revenues they generate in Africa.”
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