IATA: Release of $265m will encourage foreign airlines to continue servicing Nigeria 

The International Air Transport Association (IATA) says the release of $265 million by the Nigerian government to foreign airlines will encourage them to continue servicing the country.

Kamil Alawadhi, the association’s regional vice-president, Africa, and the Middle East, said this in a statement on Monday.

Following pressure from aviation stakeholders and subsequent suspension of operations by Emirates, the federal government, on Friday, released the sum of $265 million to foreign airlines.

In reaction to the move, Alawadhi, who welcomed the development, said the government has encouraged foreign airlines by releasing the sum out of the $464 million funds trapped in the country.

He added that the international body would continue to engage the Nigerian government on the need to release the remaining trapped funds.

“IATA welcomes the Nigerian government’s release of $265m of airlines’ blocked funds. We will continue to engage with it 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,” Alawadhi said.

“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. 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.

“IATA speaks and leads the industry on matters of common interest. 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.”

Nigeria is among the countries in Africa accused of blocking the repatriation of airlines’ funds.

Algeria, Ethiopia, Eritrea, and Zimbabwe jointly withheld a total of $350 million from foreign airlines, as of May.