$700m still trapped, says IATA as CBN releases additional $64.44m to airlines
The International Air Transport Association (IATA) has commended the Central Bank of Nigeria (CBN) for releasing $64.44 million to foreign airlines, but highlighted that approximately $700 million remains inaccessible in Nigerian commercial banks.
Recall that in the ongoing effort to repatriate foreign airlines’ funds blocked in the country, the Central Bank of Nigeria (CBN) revealed on Monday, January 29, 2024, that the latest disbursement reached $136.73 million, clearing all verified claims.
In a statement issued on Tuesday, January 30, 2024, IATA said the impact of the blocked funds on the affected airlines was unimaginable, resulting from the devaluation of the Nigerian Naira against the US Dollar.
Urging fair treatment for airlines amidst exchange rate challenges, IATA pledged to monitor the situation closely and collaborate with the government to maintain favorable conditions for Nigeria’s international connectivity.
“While this development is encouraging, it is crucial to recognise that approximately $700 million remains blocked with Nigeria’s commercial banks. As such, there is a considerable journey ahead in fully addressing the issue.
“This is exacerbated by the devaluation of the Nigerian Naira, which has dropped significantly against the US Dollar. Airlines should not be unfairly penalised by the lower exchange rate.
“We will continue to monitor the situation closely and work with the government to ensure that the environment remains conducive to ensuring Nigeria’s connectivity to international markets,” said IATA.
This development follows IATA’s announcement on March 14, 2023, revealing a rise in blocked foreign airlines’ revenue to $743 million.
The recent release from CBN on January 30, 2024, totaling $64.44 million, marks the conclusion of verified foreign exchange claims by airlines.
This could potentially signal the end of a dispute that began in June 2022, when IATA first raised concerns about its members’ $450 million blocked funds.
Previously, on January 7, 2024, CBN disbursed $61.64 million to foreign airlines through commercial banks, complementing the $265 million released on August 26, 2022, to settle outstanding ticket sales.
