Nigeria is preventing the repatriation of $450 million in international airline revenue, IATA

According to an executive at the world's largest airline organization, IATA claimed on Sunday that Nigeria is keeping $450 million in revenue generated by multinational carriers operating in the country.

As the country grapples with a chronic dollar shortage, Africa's biggest economy has limited access to foreign currencies for imports and investors trying to repatriate gains.

Kamal Al Awadhi, Vice President of the International Air Transport Association for Africa and the Middle East, characterized discussions with Nigerian officials to release the cash as a "hectic ride." According to IATA, Nigeria limited the funds to enable for the importation of crucial products and services as well as the repatriation of dividends by investors implying that getting country officials to transfer cash might be stressful. He also voiced concerns that the scenario might "damage" Nigeria's aviation business in the future as airlines explore revenue-protecting strategies.

"We keep chipping away and hoping that it clicks that this is going to going to damage the country down the road," he told reporters in Doha on the eve of IATA's annual meeting of airline chiefs there this week.

Nigeria restricted funds increased 12.5 percent month over month, according to statistics from May 2022. This figure shows the total amount of international airline income that the carriers are unable to repatriate.

According to a study initially published by Reuters, the International Air Transport Association (IATA) alleges that governments owe airlines approximately $1 billion in revenue, with Nigeria accounting for 45 percent of the total.

Other African countries, such as Algeria, Ethiopia, and Zimbabwe, owe international airlines a total of $271 million.

The country has been experiencing a serious currency collapse, with the difference between official and black market exchange rates reaching an all-time high of around N180.

Corporations with forex inflows have been compelled to conceal their money overseas to avoid having to report their funds locally and being obliged to convert at standard rates when they may make a larger margin on the illicit market.

Airline companies, on the other hand, charge domestic currency ticket costs, despite the fact that airfares are translated to local currency using the CBN Nafex exchange rate.

Nigeria's oil revenues have also fallen short of expectations, resulting in a financial shortfall.

IATA has undertaken two rounds of conversations with Nigerian officials, notably the Central Bank, who, according to Al Awadhi, are "not responsive" to the release of funds.

 According to Reuters, another round of discussions between the airline lobby organization IATA and Nigerian officials is set to begin soon.