The International Air Transport Association (IATA) reported on Sunday that blocked funds have increased to $812.2 million, making it more difficult for foreign airlines to recover earnings from Nigeria.
This situation is part of the growing worry about blocked funds all over the world, which could disrupt airline connectivity and economic activities worldwide.
The blocked funds worldwide increased by 47 percent to $2.27 billion in April 2023, from $1.55 billion in April 2022, according to IATA.
This spike shows that aircrafts are battling to localize their business profit from specific business sectors, making it extreme to keep up with the urgent network that animates worldwide monetary movement and occupation creation.
Willie Walsh, the Director-General of IATA, emphasized the significance of finding a solution to this problem.
According to Walsh’s statement,“Airlines cannot continue to offer services in markets where they are unable to repatriate the revenues arising from their commercial activities in those markets,
“Governments need to work with industry to resolve this situation so airlines can continue to provide the connectivity that is vital to driving economic activity and job creation.”
According to the most recent estimates provided by IATA, five nations, including Nigeria, are responsible for an alarming 68.0% of all blocked funds.
Nigeria pays 812.2 million dollars, Bangladesh pays 214.1 million dollars, Algeria pays 196.3 million dollars, Pakistan pays 188.2 million dollars, and Lebanon pays 141.2 million dollars.
IATA has urged governments to comply with international treaty obligations that allow airlines to repatriate funds from ticket sales, cargo space, and other operations in response to this situation.
The aviation industry’s long-term viability and stability could be further jeopardized by noncompliance.
“IATA urged governments to abide by international agreements and treaty obligations to enable airlines to repatriate these funds arising from the sale of tickets, cargo space, and other activities,” Walsh rehashed.
