Home Business IATA says Nigeria owes foreign airlines $53m from ticket sales

IATA says Nigeria owes foreign airlines $53m from ticket sales

by Business News Report

International Air Transport Association has said that Nigeria is owing airlines the sum of $53 million, which is the proceeds from sales of foreign airlines’ ticket that are trapped in Nigeria due to foreign exchange crunch. International Air Transport Association’s (IATA) Regional Vice President for Africa and the Middle East (AME), Mr. Muhammed Albakri said this at the 76th Annual General Meeting. The inability of some international airline had in the past lead to the suspension of their operations in Nigeria

Albakri said that foreign airlines operating into Nigeria are having difficulties repatriating the fund back to their operational base. He said that Nigeria and other African countries have blocked funds that amounted to $516 million. He said, “IATA has been at the forefront of the campaign, soliciting governments’ support for the aviation industry in order to salvage the situation.”

Nigeria is not the only country with trapped funds but fourth among 12 others with similar issues. Others African states are Zimbabwe $160 million; Eritrea $79 million; Algeria $54 million; Ethiopia $52 million; Sudan $45 million; Libya $27 million; XAF Zone $27 million; Angola $9 million; Mozambique $6 million; Burundi $3 million and Zambia $1 million.

The IATA’s disclosure is an indication that the airlines could not access foreign exchange due to COVID-19 pandemic, as most countries are struggling economically with its attendant effect on global airline industry.

International airlines are owed $824 million globally and $516 million out of $824 million is in Africa. 

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