The global representative body of the airline industry, the International Air Transport Association (IATA), has welcomed the decision by the government of Nigeria to release just over 50% of the international airlines’ funds that it had been blocking from repatriation. Nigeria has now released $265-million of the total blocked amount, which, in July, amounted to $464-million.

“We will continue to engage with [Nigeria] on expediting the release of the remaining amount, so that airlines can continue providing the connectivity Nigeria requires without disrupting and harming its economy and jobs,” affirmed IATA regional VP: Africa and Middle East Kamil Alawadhi. The funds were accrued by the airlines from ticket sales in the West African country.

Nigeria’s refusal to allow the repatriation of airline funds resulted, earlier this month, in global major carrier Emirates halting its services to and from the country. IATA had previously warned Nigeria that it risked seeing its air connectivity reduced if it did not allow the airlines to repatriate their funds.  

But the West African country is not the only African state that is currently holding on to airline funds. Starting with the greatest amount, the others are Zimbabwe, which is withholding $100-million, Algeria ($96-million), Eritrea ($79-million) and Ethiopia (75-million).

“We encourage other countries, in Africa and elsewhere, that are blocking the repatriation of foreign airlines’ funds, to follow Nigeria’s example and release the money they are withholding,” he urged. “Without it, airlines cannot afford to serve those countries. This would be detrimental to the people and businesses that depend on the market connectivity those airlines provide.”

Separately to IATA, Kenya Airways has announced that $28-million of its revenues were being withheld by three African countries. These were Nigeria, Ethiopia and Malawi. “The blocked funds are mainly a cash impact as we are not able to access these funds,” said Kenya Airways CEO Allan Kilavuka. “We are, of course, also concerned about the devaluation of these funds going forward.”

“IATA speaks and leads the industry on matters of common interest,” pointed out Alawadhi. “While IATA cannot speak for individual airlines, we hope the release of blocked funds with assurances and safeguards to prevent a recurrence, will persuade affected carriers to continue serving Nigeria.”