A leader of the world’s largest aircraft association stated on Sunday that Nigeria is retaining $450 million in earnings from international transporters operating in the nation.
As a result of a severe dollar shortfall, the largest economy in Africa has restricted access to foreign currency for imports and financial backers are attempting to localise their benefits.
As a result, Kamal Al Awadhi, vice president of the International Air Transport Association for Africa and the Middle East, described discussions with Nigerian officials to handover the assets as a “frenzied ride.”
He told media in Doha just prior to IATA’s annual convention of airline executives there this week, “We are hoping that it will become clear that this is going to affect the country in the not too distant future.”
Kuwait Airways’ former CEO, Al Awadhi, stated that Nigerian authorities had blamed the foreign currency deficit on the airline’s failure to localise its revenue.
The representative of the Central Bank of Nigeria did not promptly respond to a request for input.
Recently, Nigeria has restricted income from foreign aeroplanes before localising the assets.
IATA has had two rounds of discussions with Nigerian authorities, notably the Central Bank, which Al Awadhi characterised as “unresponsive” to delivering cash.
IATA and Nigerian authorities are expected to begin a new round of discussions soon, the airline aviation group said, without specifying when.
Al Awadhi stated, “Hopefully, we’ll be able to negotiate a plan where the debt will begin to decrease, but I doubt it will be paid off in one lump sum.”
IATA reports that $1 billion is being held by unidentified carriers across Africa, despite Nigeria being the country where the value of blocked reserves has increased the most.
The $450 million, the largest amount held by any African nation, increased by 12.5% month-over-month in May.
Algeria, Ethiopia, and Zimbabwe, who together are retaining $271 million from unfamiliar carriers, in May quietly squared away what they owed. IATA reported that Eritrea was untouched at $75 million.
