The International Air Transport Association (IATA) has confirmed that Nigeria is no longer among the countries with blocked or unrepatriated airline revenues. The announcement came during the association’s recent annual general meeting, where IATA’s regional vice-president for Africa, the Middle East, and Europe, Kamil Al-Awadhi, highlighted improvements in countries that had previously restricted access to airline funds.

 

Al-Awadhi noted that while blocked funds remain a challenge across the region, significant progress has been made in Nigeria, Egypt, and Ethiopia. He stated that Nigeria has made enough advancements to be removed from IATA’s list of countries with trapped airline revenues.

 

Despite the progress, IATA says blocked funds continue to be a major concern in the Africa and Middle East (AME) region. As of April, $1.28 billion in airline revenue remains withheld globally, with $1.1 billion, about 85 percent, blocked in AME countries. Of this amount, $919 million is held in African nations. Mozambique currently tops the list globally, followed by the Central African Economic and Monetary Community (XAF Zone), Algeria, Lebanon, and Angola.

 

Al-Awadhi stressed the consequences of restricting airlines’ access to their revenues, warning that such actions limit airline operations, reduce market connectivity, and deter foreign investment. He urged governments to prioritise aviation in foreign exchange access, citing the sector’s importance to economic growth and integration.

 

Nigeria had previously led the world in unrepatriated airline funds, with blocked revenues peaking at around $850 million due to a prolonged foreign exchange shortfall. In response to industry backlash, the Central Bank of Nigeria began releasing funds in 2022 and continued disbursements under the current administration. By March 2024, the bank announced that it had cleared the country’s FX backlog, with IATA confirming that 98 percent of airline funds had been released.