IATA Reveals Foreign Airlines’ Trapped Funds In Nigeria Reach $738 Million

International Air Transport Association (IATA) disclosed on Tuesday that trapped funds of foreign airlines in Nigeria have reached $738 million.

IATA's Regional Vice-President for Africa and the Middle East, Kamil Al Awadhi, met Nigeria's new Minister of Aviation and Aerospace Development, Festus Keyamo, on Sept. 15 to discuss the trapped funds solution, IATA revealed, as per Punch.

During the meeting, Al Awadhi "called on the new government for continued, but closer, consultation with the industry while developing short- and long-term solutions for foreign exchange access to both domestic and foreign carriers," adding that Nigeria accounts for $783m of airlines' blocked funds as of August 2023.

IATA mentioned that the association is impressed with the Federal Airports Authority of Nigeria's (FAAN) commitment to improve Lagos' Murtala Muhammad International Airport infrastructure and service levels in the next 12 months.

It also shared that there was a high-level meeting between IATA and FAAN last week, which was attended by FAAN's Managing Director/Chief Executive Officer, Kabir Mohammed.

"We welcome FAAN's commitment to upgrade Lagos airport. It is the main domestic and international hub connecting Nigeria with the rest of Africa and beyond and needs to keep up with demand," Al Awadhi said.

He added, "This strategic focus not only enhances the aviation sector but also serves as a catalyst for Nigeria's broader economic and social advancement. IATA stands ready to support the FAAN with expertise to ensure international standards are met through the corrective action plan."

Al Awadhi noted that safety, security, and efficient infrastructure are critical for a well-functioning air transport system.

He explained, "So is the ability of airlines to have access to the revenues they generate in Africa. These priorities are among the key elements addressed under IATA's Focus Africa initiative to strengthen aviation's contribution to Africa's economic and social development."

The managing director concluded that Nigeria's focus on these issues "reinforces their position among the leaders of African aviation."

Due to trapped funds in Nigeria, the United Arab Emirates stopped issuing visas to Nigerian nationals after Emirates Airlines suspended flights last year. However, earlier this month, the ban was immediately lifted after Nigerian President Bola Ahmed Tinubu visited Abu Dhabi and secured a landmark deal across various sectors.

This agreement led to the immediate cessation of the visa ban placed on Nigerian travelers in 2022. Under this agreement, both Etihad Airlines and Emirates Airlines are to immediately resume flight schedules into and out of Nigeria without any further delay.