The International Air Transport Association (IATA), says the Nigerian Aviation sector stands to face a collapse because of the withheld foreign airlines’ revenues amounting to $464 million.
The association expressed disappointment in the President Muhammadu Buhari-led regime, via its Twitter page, saying, “IATA is disappointed that the amount of airline money blocked from repatriation by the #Nigerian government grew to $464 million in July. #blockedfunds.”
The IATA urged Buhari’s regime to prioritise the release of the funds before more damage is done, noting that the failure to do so will affect Nigeria’s access to its services.
“Airlines can’t be expected to fly if they can’t realise revenue from ticket sales. Loss of connectivity harms the economy, hurts investor confidence, impacts jobs and people’s lives.”
IATA’s statement followed Emirates Airlines’ announcing a suspension of all flights to and from Nigeria after several failed attempts by the foreign airline to recover $85 million in trapped funds.
In July, Emirates announced a reduction in flight operations to Nigeria from August 15, with the airline’s DSVP International Affairs Majid Al Mualla stating that the airline had tried to work with the Central Bank of Nigeria to find a solution.
In June, IATA revealed that Nigeria was withholding $450 million in revenue international carriers operating in the country have earned.
Nigeria’s move to withhold the airlines’ earnings came after the restrictions on access to foreign currency against investors seeking to repatriate their profits as the nation tackles a severe dollar shortage.