Pix Source : www.iata.org
…Says Venezuela Has Highest Blocked Funds Of $3.5billion In The World
The International Air Transport Association (IATA) has stated that as at March funds belonging to international airlines totaling about $577 million has been trapped at the Apex Bank ;the Central Bank of Nigeria(CBN).
This is just as IATA also disclosed that the $577 million airlines’ funds trapped in CBN was the highest in Africa, that of Venezuela’$3.5billion was the highest number of blocked funds in the world.
This was revealed by the Regional Manager, South West Africa, Mr. Samson Fatokun at press briefing during a- two-day IATA Conference in Abuja.
According to him, “The funds we are talking about does not belong to foreign airlines alone as it equally affects Nigerian carriers. As at today, Nigerian carriers are not able to assess dollars for procurement of spare parts and maintenance of their aircraft abroad among others. However, Nigeria remains the highest in the continent with blocked funds. But, the government has assured us that the controversy surrounding the funds would be resolved very soon and we believe them for that.”
He hinted that foreign airlines have been unable to repatriate the funds earned from the ticket sales in the country since October, 2015.
This ,he stated had caused lots of crisis in the airline sub-sector, and that this had lead to a situation where some airline had to threatened to suspend operations into the country while others were tinkering with option of reducing their personnel.
The IATA scribe stated that the airlines body in conjunction with international airlines were discussing with the Federal Government to ensure the release of the funds.
Fatokun added that about a month ago, they had a meeting with the Vice President, Professor Yemi Osibajo and other government officials and that they given assurance that the trapped funds would be released soon.
According to him, “The funds we are talking about does not belong to foreign airlines alone as it equally affects Nigerian carriers. As at today, Nigerian carriers are not able to assess dollars for procurement of spare parts and maintenance of their aircraft abroad among others.”
“However, Nigeria remains the highest in the continent with blocked funds. But, the government has assured us that the controversy surrounding the funds would be resolved very soon and we believe them for that.”
The trapped funds was due to the refusal of the Central Bank of Nigeria (CBN) relax its forex policy for foreign airlines, a situation which has prevented international airlines from repatriating millions of dollars to their various home countries.
IATA is a trade association for the world’s airlines consisting of about 260 airlines, primarily major carriers, representing 117 countries and its members account for 83 per cent of total air traffic.
