By Dickson Omobola

International Air Transport Association, IATA, has removed Nigeria from the list of countries blocking airlines funds.

IATA also stated that nine countries account for 83 per cent of the airline industry’s blocked funds, which would amount to $1.43 billion.

In June, IATA confirmed that the Central Bank of Nigeria, CBN, cleared foreign airlines trapped funds worth $831m.

But while disclosing that Pakistan, XAF Zone, Bangladesh, Algeria,  Lebanon Mozambique, Angola, Eritrea and XOF Zone were some of the countries still blocking $1.7 billion in airline funds, IATA reported that $1.7 billion were blocked from repatriation by governments as of the end of October 2024.

According to the association, this was a small improvement compared to the $1.8 billion reported at the end of April.

Commenting on the development, Director General of IATA, Willie Walsh, said over the last six months, the association has seen significant reductions in blocked funds in Pakistan, Bangladesh, Algeria and Ethiopia.

He said: “At the same time, amounts are rising in the XAF /XOF  zones and Mozambique. Bolivia has also emerged as a problem, where repatriating sales revenues is becoming increasingly difficult and unsustainable for airlines. This unfortunate game of ‘whack-a-mole’ is unacceptable.  Governments must remove all barriers for airlines to repatriate their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations.”

“No country wants to lose aviation connectivity, which drives economic prosperity. But if airlines cannot repatriate their revenues, they cannot be expected to provide a service. Economies will suffer if connectivity collapses. So, it is in everyone’s interest, including governments, to ensure that airlines can repatriate their funds smoothly.”