By Ebi Kesiena
The International Air Transport Association has warned that service to countries in Africa and elsewhere that block the repatriation of funds is likely to suffer if there is no progress in talks to unfreeze money owed.
In a briefing on Monday, the global association explained that about $1.6 billion of funds are being withheld in Africa for various reasons, representing two thirds of the global total, adding that this has a strong prospect for growth in the continent’s airline market.
“The people who suffer as a result of these blocked funds are consumers in these markets, because you cannot expect airlines to continue to provide services if in effect they’re not being paid,” IATA Director General Willie Walsh said.
The issue of airline funds’ being blocked in some countries where carriers operate has been rising as demand for hard currency outpaces supply, with IATA stepping up efforts to whittle down a deficit that grew 25% in the last six months of 2022 alone.
According to the Geneva-based body, which represents most of the world’s major airlines, Nigeria tops the list of countries holding back funds, with Algeria and Ghana also involved.
In August, 2022, Emirates airline, which had been battling to repatriate its millions of dollars in revenue from Nigeria said in a statement that it took the “difficult decision” to limit further losses by stopping service to that nation, citing circumstances “beyond our control.”
In February 2023, Nigerian President Muhammadu Buhari asked Emirates to resume operations. The African leader reportedly told the Central Bank of Nigeria to make available to the airlines more foreign currency.
On March 24, 2023 Emirates said its funds were still being blocked by Abuja. The IATA was quoted then as saying that Nigeria was some $743 million in arrears.
