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Nigeria clears years-old blocked airline funds – Report

Nigeria has cleared 98 percent of blocked airline funds that have been held in the West African country for years.

At its peak in June 2023, Nigeria’s blocked funds amounted to $850 million, significantly affecting airline operations and finances in the country.

Carriers faced difficulties in repatriating revenues in US dollars, and the high volume of blocked funds led some airlines to reduce their operations and one carrier to temporarily cease operations to Nigeria, which severely impacted the country’s aviation industry.

However, as of April 2024, 98% of these funds have been cleared. The remaining $19 million is due to the Central Bank’s ongoing verification of outstanding forward claims filed by the commercial banks.

Kamil Alawadhi, IATA Regional Vice-president for Africa and Middle East, briefing the African Media at the ongoing 80th IATA Annual General Meeting and World Air Transport Summit in Dubai, was optimistic that the clearing of the blocked funds will lead to lower fares and increased competition in Nigeria going forward.

“Now automatically they will start dropping the airfares. You will see that airfares are actually generally quite expensive in Nigeria. We are going to see increased competition [ with the clearing of the blocked funds].”

He commend the new Nigerian government and the Central Bank of Nigeria for their efforts to resolve this issue.

Willie Walsh, IATA’s Director-General, in a statement noted that individual Nigerians and the economy will all benefit from reliable air connectivity for which access to revenues is critical. “We are on the right path and urge the government to clear the residual $19 million and continue prioritizing aviation,” said Mr. Walsh noted.

Return of Emirates

Dubai-based Emirates is to resume flights to Nigeria’s commercial capital, Lagos, effective October 1, 2024. The Dubai-Lagos-Dubai service will be operated using a Boeing 777-300ER.

Emirates Airlines suspended its flights to Lagos in 2022 over its inability to repatriate its fund from the West African country.

 

Source: aviationghana.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. In addition to his media ventures, Solomon serves as a Brand Ambassador for Alabuga, a prominent Russian industrial company, representing their interests and expansion across Africa. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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