Foreign airlines have disclosed that about 90% of their $783m trapped funds have remained unpaid.
The airlines stated this during a stakeholders’ forum convened by Festus Keyamo, the Minister of Aviation and Aerospace Development, in Lagos recently.
According to data from the International Air Transport Association, as of August 2023, Nigeria accounted for a substantial $783m of airlines’ blocked funds.
Despite recent efforts to alleviate the situation, the airlines said a significant portion of those funds remained inaccessible to them.
Chima Kingsley, the Chairman of International Airline Operators, emphasised that while international banks had received some funds from the Central Bank of Nigeria that only accounted for a fraction, less than 10 per cent of the trapped funds.
The bulk of the blocked funds are with Nigerian commercial banks. The bulk of the money has not been paid,” he said.
Since last year, foreign airlines operating in Nigeria blocked low ticket inventories (cheap tickets), leaving high inventories (costly tickets) to be sold in naira only, while the low ticket inventories on most airlines’ websites could only be bought with dollar cards.
This was in a bid to cushion the effect of their trapped funds in Nigeria which kept rising.
