{"id":50618,"date":"2023-11-08T22:37:58","date_gmt":"2023-11-08T17:07:58","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=50618"},"modified":"2023-11-09T11:44:47","modified_gmt":"2023-11-09T06:14:47","slug":"emirates-and-other-airlines-700-million-usd-stuck-in-nigeria","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2023\/11\/08\/emirates-and-other-airlines-700-million-usd-stuck-in-nigeria\/","title":{"rendered":"Emirates and Other Airlines 700 Million USD Stuck in Nigeria"},"content":{"rendered":"\n

LAGOS-<\/strong> At a recent stakeholders’ forum hosted by Nigeria’s minister of aviation and aerospace development, Festus Keyamo, foreign airlines voiced their concerns regarding the unavailability of approximately 90% of their $783 million trapped funds in Nigeria<\/a>.<\/p>\n\n\n\n

Data compiled by the International Air Transport Association (IATA)<\/a> indicates that as of August 2023, Nigeria held $783 million in blocked airline funds. Despite recent efforts to address the backlog, many of these funds remain inaccessible to airlines.<\/p>\n\n\n\n

\"Emirates
Photo: Christian Junker | Photography | Flickr<\/figcaption><\/figure>\n\n\n\n

Emirates Million Stuck in Nigeria<\/h2>\n\n\n\n

Nigeria has consistently attributed the delay in releasing these funds to a shortage of foreign exchange (Forex). The country is facing substantial payment backlogs, which it has begun to address in recent months.<\/p>\n\n\n\n

According to the International Air Transport Association (IATA), airline funds trapped by governments due to repatriation restrictions have accumulated to $394 million over the past six months.<\/p>\n\n\n\n

Global blocked funds have reached nearly $2 billion, impacting airlines in over 27 countries. The top five countries holding significant blocked funds are Nigeria with $551 million, Pakistan with $225 million, Bangladesh with $208 million, Lebanon with $144 million, and Algeria with $140 million.<\/p>\n\n\n\n

Chima Kingsley, chairman of International Airline Operators, revealed that while international banks have received a portion of the trapped funds from the Central Bank of Nigeria (CBN), the amount represents a mere fraction, less than 10% of the total. <\/p>\n\n\n\n

Punch reports that Kingsley further stated that the bulk of the funds remain locked up in commercial banks in Nigeria, awaiting disbursement.<\/p>\n\n\n\n

President Bola Tinubu recently pledged to settle the $7 billion outstanding foreign exchange (Forex) obligations owed by the Federal Government. <\/p>\n\n\n\n

While the CBN has initiated efforts to clear the Forex backlogs responsible for the currency crisis in Nigeria, challenges in disbursing the trapped funds persist.<\/p>\n\n\n\n

\"Emirates
Photo: Emirates<\/figcaption><\/figure>\n\n\n\n

Local Carriers also Impacted<\/h2>\n\n\n\n

Domestic airlines, represented by United Nigeria Airlines Chairman Obiora Okonkwo, raised concerns about the impact of trapped funds on their operations. <\/p>\n\n\n\n

They highlighted the accumulation of aircraft maintenance fees due to difficulties procuring foreign exchange (FX) for payments.<\/p>\n\n\n\n

Samson Fatokun, IATA’s area manager for West and Central Africa, underscored the importance of reducing operating costs for the aviation industry. <\/p>\n\n\n\n

Minister of Aviation and Aerospace Development Festus Keyamo assured stakeholders that efforts were underway to resolve the debt issues.<\/p>\n\n\n\n

In a statement released on March 17, 2023, the Nigerian government acknowledged the need for a comprehensive strategy to facilitate the repatriation of trapped funds owed to foreign airlines operating in the country. <\/p>\n\n\n\n

This issue gained significant attention in November 2022 when Emirates suspended operations in Nigeria due to unpaid debts exceeding $600 million.<\/p>\n\n\n\n

Stay tuned with us. Further, follow us on social media for the latest updates.<\/p>\n\n\n\n

Join us on Telegram Group <\/a>for the Latest Aviation Updates. Subsequently, follow us on Google News<\/a>.<\/p>\n\n\n\n

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Emirates Announces the Best Half-Year Performance, with US$2.7 Billion Profit<\/a><\/blockquote>