The International Air Transport Association, a worldwide airline trade group with headquarters in Switzerland, issued a warning on Sunday that the quickly rising volumes of frozen cash posed a threat to airline connectivity in Nigeria and other impacted nations.
The industry’s blocked money climbed by 47% to $2.27 billion in April 2023 from $1.55 billion in April 2022, according to information provided by IATA.
In order for airlines to continue providing the connectivity that is essential for fostering economic activity and job creation, governments must collaborate with the industry to find a solution, according to IATA Director General Willie Walsh.
The top five nations are responsible for 68% of the blocked cash, according to the international airline association. Nigeria ($812.2 million), Bangladesh ($214.1 million), Algeria ($196.3 million), Pakistan ($188.2 million), and Lebanon ($141.2 million) are among them.
Governments were asked by IATA to uphold international agreements and treaty obligations to enable airlines to repatriate these funds arising from the sale of tickets, cargo space, and other activities.
the Regional Vice President, Africa and Middle East, IATA, Kamil Alawadhi, had risen to $812m as of April 2023.
He said IATA was making headway with the Nigerian government on the repatriation of blocked funds until December last year when preparations for the general polls stalled the process. This, he said had led to a significant increase in blocked funds in the country.