Foreign airlines have disclosed that approximately 90 percent of the $783 million in trapped funds remains unpaid.
Despite recent efforts to alleviate the situation, the airlines emphasized that a significant portion of those funds remains inaccessible.
During a stakeholders’ forum convened by Nigeria’s Minister of Aviation and Aerospace Development, Festus Keyamo, in Lagos, the Chairman of International Airline Operators, Mr. Chima Kingsley, emphasized that while international banks had received some funds from the Central Bank of Nigeria, it accounted for less than 10 percent of the trapped funds.
He revealed that the bulk of the blocked funds are with Nigerian commercial banks and have not been paid.
President Bola Tinubu recently promised to clear an estimated $7 billion outstanding foreign exchange obligations of the Federal Government related to forex forwards contracts owed to commercial banks, which was expected to alleviate some pressure on foreign exchange.
Domestic carriers also voiced their struggles, citing trapped funds and limited access to forex as factors impacting their operations.
The inability to access forex has resulted in accumulating aircraft maintenance fees.
The Area Manager of West and Central Africa for the International Air Transport Association (IATA), Dr. Samson Fatokun, stressed the need to reduce operating costs in the Nigerian aviation sector and advocated for sector-specific support.
Minister Keyamo assured stakeholders that efforts were underway to address the forex challenge and offered hope for the airlines grappling with financial constraints in the coming weeks.