The International Air Transport Association (IATA), a global airline body based in Switzerland, has raised concerns over the escalating levels of blocked funds, posing a significant threat to airline connectivity in Nigeria and other affected nations.

In April 2023, the industry’s blocked funds surged by 47 percent to $2.27 billion, compared to $1.55 billion in April 2022.

IATA emphasized that airlines cannot sustain operations in markets where they face difficulties repatriating revenues generated from their activities.

Willie Walsh, the Director General of IATA, urged governments to collaborate with the industry to resolve this issue promptly and enable airlines to continue providing essential connectivity for economic growth and job creation.

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Nigeria holds the highest amount of blocked funds at $812.2 million, followed by Bangladesh, Algeria, Pakistan, and Lebanon.

IATA called upon governments to adhere to international agreements and treaty obligations, ensuring the repatriation of funds arising from ticket sales, cargo space, and other airline activities.

The Regional Vice President of IATA for Africa and the Middle East, Kamil Alawadhi, disclosed the ongoing efforts to address Nigeria’s blocked funds issue.

He expressed optimism about engaging with the new government to clear the backlog promptly and improve Nigeria’s perception in the global investment community.

Alawadhi stressed that the trapped funds have led to negative consequences, including high ticket prices and reduced investor interest in the country.