CBN Yet To Settle $19m Out Of $850m Foreign Airlines Trapped Funds- IATA

About $813m funds belonging to foreign airlines that were trapped in Nigeria since June 2023 had been cleared but the Central Bank of Nigeria still has $19m outstanding balance to settle, the International Air Transport Association said.

The Director-General of IATA, Willie Walsh, confirmed the status of trapped funds in a statement.

IATA said that at the peak of the issue, the total funds of airlines trapped in the country was $850m.

Walsh said, “At its peak in June 2023, Nigeria’s blocked funds amounted to $850m, significantly affecting airline operations and finances in the country. Carriers faced difficulties in repatriating revenues in US dollars, and the high volume of blocked funds led some airlines to reduce their operations and one carrier to temporarily cease operations in Nigeria, which severely impacted the country’s aviation industry.

“However, as of April 2024, 98 per cent of these funds have been cleared. The remaining $19m is due to the Central Bank’s ongoing verification of outstanding forward claims filed by the commercial banks.

Trapped funds belonging to airlines globally had reached a peak of $1.8bn, out of which $850m was trapped in Nigeria.

But IATA said the figures have reduced significantly after the CBN cleared almost all Nigeria’s obligations.

Walsh said Egypt has also approved clearance of its significant accumulation of blocked funds.