IATA warns Airlines might exit Nigeria over $802m trapped funds

The International Air Transport Association (IATA) has warned that Airlines might quit operations over $802 million trapped funds in Nigeria.

The Switzerland-based Airlines Association, IATA, also cautioned the Nigerian government that the situation could hamper air connectivity, economic growth, and the development of the country’s aviation sector.

Willie Walsh, the Director-General of IATA, gave the advice on Monday while speaking at the launching of “Focus Africa”, a new initiative to strengthen aviation’s contribution to Africa’s economic and social development.

The project, he said, will also improve passengers’ and shippers’ connectivity, safety, and reliability.

Walsh said “Airlines may be forced to reduce their service in the countries blocking funds; this is a significant issue to airlines and IATA. It can affect African aviation’s growth.”

IATA Chairperson-designate and RwandAir Chief Executive Officer, Yvonne Makolo  disclosed that the total amount of blocked funds in Africa is $1.6bn, while Nigeria has $802 million which is the highest blocked funds in Africa and the world.