The International Air Transport Association (IATA) has expressed concerns that foreign airlines may abandon Nigeria over $790 million in ticket revenue currently trapped in the country.
IATA’s Regional Vice President for Africa & Middle East, Kamil Alawadhi, stated that Nigeria has not taken the necessary steps to address the issue.
Nigeria’s high loan interest rate, airport taxes, and insurance premiums make it challenging for airlines to make a profit, he noted.
What is more, Nigerian airlines operating outside the country have lower operating costs and more competitive prices compared to Nigeria.
Alawadhi criticized the unfair situation where airlines, having paid all dues, face difficulties in retrieving their money due to bureaucratic delays.
With $792 million, Nigeria is the country with the most airline funds blocked. Other nations are Ethiopia ($128 million), the AFI zone ($183 million), Egypt ($348 million), and Algeria ($199 million).