Market News

ByAbdullateef Aliyu, Lagos

The International Air Transport Association (IATA) yesterday reported that $1.3 billion in airline funds are blocked from repatriation by governments as of end of April 2025.

According to IATA, this is a significant amount, although it is an improvement of 25% compared with the $1.7 billion reported for October 2024.

The association stated that 10 countries account for 80% of the total blocked funds, amounting to $1.03 billion.

However, Nigeria is not on the list again having cleared over $700m airlines’ blocked funds as of last year, thereby exiting the debtors’ list.

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

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

In a report yesterday, the association representing 80 per cent of global airlines urged governments to remove all barriers preventing airlines from the timely repatriation of their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations.

“Ensuring the timely repatriation of revenues is vital for airlines to cover dollar-denominated expenses and maintain their operations. Delays and denials violate bilateral agreements and increase exchange rate risks. Reliable access to revenues is critical for any business—particularly airlines which operate on very thin margins. Economies and jobs rely on international connectivity. Governments must realize that it is a challenge for airlines to maintain connectivity when revenue repatriation is denied or delayed,” said Willie Walsh, IATA’s Director General.

Pakistan and Bangladesh, previously in the top five blocked funds countries, have made notable progress in clearing their backlog to $83 million and $92 million, respectively (from $311 million and $196 million in October 2024, respectively). 

Mozambique has climbed up to the top of blocked funds countries, withholding $205 million from airlines, compared with $127 million in October 2024. The Africa and Middle East (AME) region accounts for 85% of total blocked funds, at $1.1 billion as of end April 2025.

The most significant improvement was noted in Bolivia, fully clearing its backlog that stood at $42 million at end October 2024.