According to the International Air Transport Association (IATA), $1.3 billion in airline funds are currently blocked by governments, preventing repatriation as of the end of April 2025, with Nigeria notably excluded from this issue.
While this figure is considerable, it represents a 25% improvement from the $1.7 billion reported in October 2024.
Nigeria has enjoyed a clean record for the past two years, ceasing to withhold funds from foreign carriers.
In 2024, IATA confirmed that Nigeria had addressed all trapped fund concerns. Willie Walsh, IATA’s Director-General, praised Nigeria’s significant progress, pointing out that blocked funds reached a staggering $850 million in June 2023, severely impacting airline operations. Fortunately, the majority of these funds have now been repatriated.
IATA is urging governments to lift all restrictions hindering airlines from repatriating their revenue from ticket sales and other activities, in alignment with international agreements.
“Ensuring the prompt repatriation of revenues is vital for airlines to manage dollar-denominated costs and continue operations. Delays and denials violate bilateral agreements and exacerbate exchange rate risks,” Walsh noted.
“Access to revenue is essential for any business, especially airlines, which operate on razor-thin margins. International connectivity is crucial for economies and job security. Governments must recognise that blocking or delaying revenue repatriation makes it exceedingly challenging for airlines to maintain this connectivity,” he added.
