The International Air Transport Association (IATA) has called on the Federal Government to expedite the release of the outstanding $200 million of foreign airlines fund trapped in the country.
The global airlines’ regulator said the release of the outstanding funds would encourage carriers to continue to provide connectivity into Africa’s most populous country without disrupting it’s economy and jobs.
Speaking in an interview, IATA’s Regional Vice President, Africa and Middle East, Kamil Alawadhi, urged other African countries to emulate Nigeria, which at the weekend, released over $265million of airlines’ trapped fund to enable them serve their countries.
Besides Nigeria, which owed foreign carriers over $464 million of blocked funds, other countries including Zimbabwe owes $100million; Algeria, $96 million; Eritrea, $79 million and Ethiopia, $75 million.
Alawadhi said: “IATA welcomes the Nigerian Government’s release of $265m of airlines’ blocked funds. We will continue to engage with it on expediting the release of the remaining amount, so that airlines can continue providing the connectivity Nigeria requires without disrupting and harming its economy and jobs.
“We encourage other countries in Africa and elsewhere that are blocking the repatriation of foreign airlines’ funds to follow Nigeria’s example and release the money they are withholding. Without it, airlines cannot afford to serve those countries. This would be detrimental to the people and businesses that depend on the market connectivity those airlines provide.
“IATA speaks and leads the industry on matters of common interest. While IATA cannot speak for individual airlines, we hope the release of blocked funds with assurances and safeguards to prevent a recurrence will persuade affected carriers to continue serving Nigeria.
“Even after this welcome and sizeable release, there will still be more than $200 million of airlines funds blocked in Nigeria.”
Meanwhile, there are indications that Emirates Airlines has rescinded its decision to suspend flights into Nigeria over ticket funds that were trapped in the country.
The new position, it was learnt, was sequel to the release of some funds by the Central Bank of Nigeria (CBN), at the weekend.
The Middle East carrier had over $85 million of its ticket sales blocked in Nigeria.
Experts familiar with the matter said the response of the Nigerian government to release more than half of the $464 million trapped in the country followed backlash in the international aviation community on the undiplomatic action of Nigeria and other African countries.
A source close to the airline confirmed that its trade partners received a notice suggesting it was continuing flight operations into Nigeria till end of September before it would review its position.
Checks by The Nation reveal that the carrier will operate flights till September 30, 2022 before it would inform passengers on the next move.
However, the Chairman, House of Representatives Committee on Aviation, Nnolim Nnaji, called on foreign airlines that had taken steps to stop their operations or cut flight services to Nigeria to rescind the decision.
Nnaji expressed appreciation to the Federal Government for responding to the appeal and concerns expressed by the House Leadership and its Committee on Aviation by releasing more than half of the trapped foreign airlines’ funds.
He also acknowledged the efforts of the Ministries of Aviation and Finance, as well as the CBN for their roles in making the release of the funds possible.
Nnaji similarly expressed thanks to the Speaker and the leadership of the House of Representatives for always responding swiftly to matters affecting the industry.