The International Air Transport Association (IATA) has expressed concern over the significant amount of blocked aviation funds, with African nations holding a staggering 59% of the total, equivalent to $1 billion. As of October 2024, a total of $1.7 billion in airline funds were blocked from repatriation by governments, with African countries accounting for the majority of this amount.

The IATA's report highlights the issue of blocked airline funds, which continues to be a critical concern, particularly for countries in Africa and South Asia. The association notes that while there have been significant reductions in blocked funds in some countries, such as Pakistan, Bangladesh, Algeria, and Ethiopia, amounts are rising in the XAF and XOF zones and Mozambique.

The XAF zone, which includes Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, and Gabon, and the XOF zone, which includes Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal, and Togo, are among the regions with the largest amounts of blocked aviation funds. Nigeria, however, has made significant progress, officially exiting the list of countries with blocked aviation funds after settling its outstanding debts owed to foreign airlines.

In January 2024, the Central Bank of Nigeria (CBN) announced that it had cleared the backlog of foreign exchange (forex) obligations to these airlines, with a total amount settled reaching around $800 million. This move demonstrates Nigeria's commitment to addressing forex challenges and restoring confidence in the aviation sector.

IATA's Director General, Willie Walsh, has urged governments to remove barriers to airline revenue repatriation under international agreements, stating that airlines should not be expected to provide a service if they cannot repatriate their revenues. Walsh emphasized that "no country wants to lose aviation connectivity, which drives economic prosperity," and that it is in everyone's interest, including governments, to ensure that airlines can repatriate their funds smoothly.

The issue of blocked airline funds has significant implications for the aviation industry, with airlines struggling to operate efficiently when they are unable to repatriate their earnings. The IATA's report serves as a reminder of the need for governments to address this issue and ensure that airlines can operate without unnecessary restrictions.

In conclusion, the IATA's report highlights the pressing concern of blocked aviation funds, with African nations holding a significant proportion of the total amount. As the aviation industry continues to grow and evolve, it is essential that governments and airlines work together to address this issue and ensure that airlines can operate efficiently and effectively.