IATA urges Nigeria to release blocked funds as Emirates suspends flights
IATA has lamented Nigeria’s lack of action to address the repatriation of airline funds, after Emirates announced it would suspend services to the country from 1 September because of the issue. The airline money blocked by the Nigerian government grew to $464m in July, IATA said on 18 August, cementing Africa’s largest economy as a world leader in that regard. Its total has been rising rapidly in recent months, having been at $282m in April. For Emirates, the situation is no longer tenable. “Emirates has tried every avenue to address our ongoing challenges in repatriating funds from Nigeria, and we have made considerable efforts to initiate dialogue with the relevant authorities for their urgent intervention to help find a viable solution,” it said on 18 August. “Regrettably there has been no progress,” the statement continues. “Therefore, Emirates has taken the difficult decision to suspend all flights to and from Nigeria, effective 1 September 2022, to limit further losses and impact on our operational costs that continue to accumulate in the market.” IATA believes Nigeria’s government should do more to resolve the situation. “Airlines can’t be expected to fly if they can’t realise revenue from ticket sales,” it states. “Loss of connectivity harms the economy, hurts investor confidence, impacts jobs and people’s lives. The government of Nigeria needs to prioritise the release of funds before more damage is done.” For its part, Emirates says it will re-evaluate its decision to stop serving Nigeria, “should there be any positive developments in the coming days regarding Emirates’ blocked funds”. Nigeria’s Federal Ministry of Aviation has been contacted for comment. At its AGM in June, IATA it said that blocked funds in Nigeria – then around $450m – accounted for at least 25% of the global total, which stood at $1.6b. African countries accounted for two-thirds of that overall figure, with Zimbabwe, Algeria, Eritrea and Ethiopia also hotspots alongside Nigeria. <br/>
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IATA urges Nigeria to release blocked funds as Emirates suspends flights
IATA has lamented Nigeria’s lack of action to address the repatriation of airline funds, after Emirates announced it would suspend services to the country from 1 September because of the issue. The airline money blocked by the Nigerian government grew to $464m in July, IATA said on 18 August, cementing Africa’s largest economy as a world leader in that regard. Its total has been rising rapidly in recent months, having been at $282m in April. For Emirates, the situation is no longer tenable. “Emirates has tried every avenue to address our ongoing challenges in repatriating funds from Nigeria, and we have made considerable efforts to initiate dialogue with the relevant authorities for their urgent intervention to help find a viable solution,” it said on 18 August. “Regrettably there has been no progress,” the statement continues. “Therefore, Emirates has taken the difficult decision to suspend all flights to and from Nigeria, effective 1 September 2022, to limit further losses and impact on our operational costs that continue to accumulate in the market.” IATA believes Nigeria’s government should do more to resolve the situation. “Airlines can’t be expected to fly if they can’t realise revenue from ticket sales,” it states. “Loss of connectivity harms the economy, hurts investor confidence, impacts jobs and people’s lives. The government of Nigeria needs to prioritise the release of funds before more damage is done.” For its part, Emirates says it will re-evaluate its decision to stop serving Nigeria, “should there be any positive developments in the coming days regarding Emirates’ blocked funds”. Nigeria’s Federal Ministry of Aviation has been contacted for comment. At its AGM in June, IATA it said that blocked funds in Nigeria – then around $450m – accounted for at least 25% of the global total, which stood at $1.6b. African countries accounted for two-thirds of that overall figure, with Zimbabwe, Algeria, Eritrea and Ethiopia also hotspots alongside Nigeria. <br/>
