At a recent stakeholders’ forum organized by the Minister of Aviation and Aerospace Development, Festus Keyamo, in Lagos, foreign airlines have revealed that approximately 90 percent of their $783 million trapped funds in Nigeria have yet to be disbursed.

According to data from the International Air Transport Association, as of August 2023, Nigeria held a significant portion of airlines’ blocked funds, amounting to $783 million.

Despite ongoing efforts to alleviate the situation, the airlines reported that a substantial portion of these funds remains inaccessible to them.

ALSO READ: Tragic: 29 year old Nigerian man commits suicide due to business loan

Mr. Chima Kingsley, Chairman of the International Airline Operators, stressed that while some funds had been received by international banks from the Central Bank of Nigeria, these funds accounted for less than 10 percent of the total trapped funds.

He noted that the majority of the blocked funds were still held by Nigerian commercial banks, and significant payments had not been made.

Two weeks ago, President Bola Tinubu had promised to clear the estimated $7 billion outstanding foreign exchange obligations of the Federal Government on forex forwards contracts owed to commercial banks.

The Central Bank of Nigeria (CBN) had already initiated steps to clear the forex backlog to ease pressure on foreign exchange, but challenges persisted in effectively disbursing the funds.

Representatives of domestic carriers, including Obiora Okonkwo, Chairman of United Nigeria Airlines, highlighted the difficulties they faced, including trapped funds and limited access to forex, which were negatively impacting their operations.

They cited examples such as accumulating aircraft maintenance fees due to the inability to source forex for payments.

Dr. Samson Fatokun, the Area Manager of West and Central Africa for IATA, emphasized the need to reduce operating costs in the Nigerian aviation sector and advocated for sector-specific support.

Minister Keyamo assured stakeholders that efforts were underway to address the forex challenge.

ALSO READ: Nigeria’s economy and investor confidence affected by naira fluctuations and exchange rate challenges

While specific disbursement figures were not disclosed, he reiterated the government’s commitment to resolving the issue in the coming weeks, providing hope for the airlines struggling with financial constraints.