Nigeria Delisted from IATA’s List of Countries with Trapped Airlines’ Funds
The International Air Transport Association (IATA) has announced that Nigeria has been removed from its list of countries with unrepatriated airlines’ revenue, commonly referred to as blocked or trapped funds.
This decision was made public by Kamil Al-Awadhi, IATA’s Regional Vice-President for Africa, Middle East, and Europe (AME), during a recent news conference at the association’s annual general meeting (AGM).
The removal of Nigeria from the list is a major breakthrough for the country’s aviation industry, which has been struggling with the issue of blocked funds for several years.
The problem of blocked funds arises when airlines are unable to repatriate their revenues from a particular country due to various reasons such as foreign exchange restrictions, regulatory hurdles, or other financial constraints.
According to Al-Awadhi, while the issue of blocked funds remains a challenge in the region, Nigeria has made significant progress in addressing the problem. He also praised other countries in the region, including Egypt and Ethiopia, for their efforts in resolving the issue.
The removal of Nigeria from the list is expected to have a positive impact on the country’s aviation industry, as it will encourage more airlines to operate in the country and invest in the sector. It will also improve the overall business environment and boost investor confidence in the Nigerian economy.
The issue of blocked funds has been a major concern for airlines operating in Nigeria, with some having millions of dollars trapped in the country.
The problem has been attributed to various factors, including the country’s foreign exchange policies, regulatory hurdles, and the general economic situation.
In recent years, the Nigerian government has taken several steps to address the issue, including the introduction of a new foreign exchange policy and the establishment of a special committee to oversee the repatriation of airlines’ funds.
These efforts seem to have paid off, with IATA’s decision to remove Nigeria from the list of countries with blocked funds.
The removal of Nigeria from the list of countries with blocked funds has significant implications for the country’s aviation industry and the economy as a whole.
Some of the potential benefits include
Increased investment in the aviation sector: With the issue of blocked funds resolved, airlines are likely to invest more in the Nigerian market, leading to improved services and increased connectivity.
The removal of Nigeria from the list is a positive signal to investors and businesses, indicating that the country is committed to creating a favorable business environment.
The aviation sector is a significant contributor to Nigeria’s economy, and the resolution of the blocked funds issue is expected to have a positive impact on the country’s economic growth.
The news has been welcomed by stakeholders in the Nigerian aviation industry, who have praised the government’s efforts in addressing the issue.
According to the Chairman of the Airline Operators of Nigeria (AON), “The removal of Nigeria from the list of countries with blocked funds is a major achievement for the country’s aviation industry.
It is a testament to the government’s commitment to creating a favorable business environment and improving the overall economy.”
The Nigerian government has also reacted to the news, with the Minister of Aviation stating that “The removal of Nigeria from the list of countries with blocked funds is a significant milestone for our aviation industry. We will continue to work with stakeholders to ensure that the issue is fully resolved and that our aviation industry continues to grow and develop.”
