The International Air Transport Association (IATA) has accused Nigerian government of stalling the repatriation of $450 million in revenue by international carriers operating in the country.
The association’s Vice President for Africa and the Middle East, Kamal Al Awadhi, was quoted by Reuters as describing talks with Nigerian authorities to release the funds as a “hectic ride”.
Al Awadhi told journalists in Doha on the eve of IATA’s annual meeting of airline chiefs that “we keep chipping away and hoping that it clicks that this is going to going to damage the country down the road.”
A former chief executive of Kuwait Airways, the IATA’s Vice President said Nigerian officials had blamed the foreign currency shortage the country was facing for the govenrment’s non-repatriation of the airlines’ revenue.
Reuters reported that its efforts to speak with the Central Bank of Nigeria’s (CBN’s) spokesperson on the pesky issue did not yield any result.
According to the news report, Nigeria has previously blocked revenue from foreign airlines before later repatriating the funds.
Al Awadhi confirmed that IATA had so far had held two rounds of talks with Nigerian officials, including those from the Central Bank, who, he claimed were “not responsive” to releasing cash.
The association hinted that another round of talks between it and Nigerian officials was expected to commence soon, and the Vice President projected that “hopefully, we can get some sort of solution where it starts going down (but) it won’t, I doubt, be paid in a single shot.”
IATA alleged that $1 billion of revenue belonging to foreign airlines was being withheld across Africa, noting, however, that Nigeria is the only country where the value of blocked funds has risen.
In addition, it also disclosed that $450 million, the largest amount withheld by any African nation, in May was 12.5% higher than the previous month.
Available data provided by the IATA on level of withheld revenues by African countries showed that Algeria, Ethiopia and Zimbabwe, who combined were withholding $271 million from foreign airlines, in May marginally paid down what they owed.
It also claimed that Eritrea’s withheld money from foreign airlines’ remained unchanged at $75 million.
