The International Air Transport Association (IATA) has issued a warning to the Central Bank of Nigeria, expressing concern that several foreign airlines might be compelled to withdraw from the Nigerian aviation market if immediate action is not taken to address the current deadlock involving $790 million in ticket revenue.
Speaking at a media presentation during the IATA Global Media Day in Geneva, Switzerland, Kamil Alawadhi, the IATA Regional Vice President for Africa & Middle East, highlighted the exorbitant costs at Lagos and Abuja airports, which are considered the most expensive gateways in the region despite the subpar condition of their infrastructure.
Nigeria emerged as the country with the highest amount of blocked funds for airlines, totaling $792 million, followed by Egypt ($348 million), Algeria ($199 million), AFI zone ($183 million), and Ethiopia ($128 million).
Alawadhi revealed that Ethiopia has devised a strategy to address its debt, whereas Nigeria has yet to take any concrete steps.
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Addressing the urgency of the situation, Alawadhi stated, “Ethiopia is seeking a way to resolve this issue even though the blocked fund is rising. The first step for us to solve these blocked funds is for both parties to engage. If parties don’t engage, it is very difficult to move forward.
“I have not been able to engage with Nigeria’s CBN Governor. He said he would engage with me when he had a solution. He is not promising but I have engaged with the Aviation Minister who is very understanding, new to the position, or maybe wowed by the situation he inherited will help to resolve the matter.”
Culled from LIB