Trapped Airline Funds in Nigeria Hit $1.3 Billion

In a recent report, the International Air Transport Association (IATA) revealed that a substantial amount of airline revenue, totaling $1.3 billion, remains stuck in various countries due to government restrictions on repatriation.

Notably, Nigeria is not among the nations withholding these funds.

This figure represents a decline of 25 percent from the $1.7 billion reported in October 2024, indicating a slight improvement in the situation.

According to IATA Director-General, Willie Walsh, Nigeria has made significant strides in resolving trapped fund issues, having cleared all outstanding balances in 2024.

At the height of the crisis in June 2023, Nigeria’s blocked funds had reached a staggering $850 million, severely impacting airline operations and finances.

However, through concerted efforts, most of these funds have since been repatriated by airlines operating in the country.

Walsh emphasized the importance of prompt revenue repatriation, citing the need for airlines to cover expenses denominated in foreign currencies and maintain their operations.

He cautioned that delays or denials of revenue repatriation not only violate international agreements but also expose airlines to exchange rate risks.

“Airlines operate on extremely narrow profit margins, making reliable access to their revenues crucial for sustaining their businesses. International connectivity, which is vital for economies and job creation, is severely compromised when airlines are denied or delayed access to their revenues. It is essential for governments to recognize the challenges posed by revenue repatriation restrictions and take necessary steps to address them,” Walsh explained.