By LAWANI MIKAIRU

The International Air Transport Association, IATA , has called on the Nigerian government to ease and facilitate the repatriation of funds by foreign airlines. It said this is in keeping with international agreements obliging countries to ensure airlines are able to repatriate their revenues.

Mr Tony Tyler, IATA’s Director General & CEO

This plea was made by Mr Tony Tyler, IATA’s Director General and CEO. He also pleaded with the Venezuela government and other oil producing countries who have been badly affected by the sudden drop in the prize of oil which has necessitated these countries coming up with stringent foreign exchange policy.

It will be recalled that foreign airlines have been having difficulties repatriating their earnings due to the new forex regime of the federal government. This has led to speculations that most of the airlines are considering closing their Nigeria routes.

According to Tyler  “Air connectivity is vital to all economies. The airline industry is a competitive business operating on thin margins. So the efficient repatriation of revenues is critical for airlines to be able to play their role as a catalyst for economic activity. It is not reasonable to expect airlines to invest and operate in nations where they cannot efficiently collect payment for their services.”

IATA monitors blocked funds globally, the sum of which exceeds $5 billion. According to reports, the top two countries blocking the repatriation of airline funds are Venezuela and Nigeria. Last week, the British Airways had to deny considering an exit from Nigeria due to the harsh operating environment. There had been reports quoting Mr Kola Olayinka, Country Manager for British Airways’ as saying   that the “UK. carrier is struggling to repatriate its share of the $575 million that Nigeria currently owes to airlines globally from tickets sold in Nigeria.”

An official statement from the airline however said: “ Our attention has been called to reports in several newspapers yesterday (Sunday) that  British Airways is considering an exit from Nigeria.

“ British Airways has a long history in Nigeria, having begun operations in the country 80 years ago as Imperial Airways.  Nigeria remains a strategic market for BA and our operations locally are very strong.  We have not issued any statements at any time indicating that we are on the verge of terminating operations in the country.   We will continue to operate to Nigeria.”

IAG Chief Executive Officer Willie Walsh was also quoted as saying last month that “ Iberia would stop serving Lagos after the low price of oil caused Nigeria’s economy to contract for the first time since 2004 in the first quarter. Limits on dollar repatriation have been imposed by the Nigerian Central Bank as reserves slip to $26.5 billion, the lowest in more than a decade, from more than $30 billion in early 2015.”