IATA Removes Nigeria from List of Countries Blocking Airlines’ Revenue, Marking Breakthrough in FX Crisis
The International Air Transport Association (IATA) officially withdrew Nigeria from the list of countries with unspoken air income, commonly called blocked or trapped funds, considerably closer to a crisis that once threatened the collapse of international air connectivity in the country.
However, the association said that other countries in Africa and the Middle East region are still very indebted to airlines – a situation attributed to the slowdown in the FX.
Before Nigeria is clean
For years, Nigeria has exceeded the list of IATA countries where international airlines have not been able to repatriate ticket revenues due to a chronic exchange of exchange (FX). By 2023, Nigeria retained more than $ 850 million in funds from world carriers, making it the most affected country in the world in this regard. The crisis has increased tensions between Nigeria and the global aeronautical industry, airlines completely reducing their services or completely suspended operations.
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One of the most important consequences occurred in August 2022, when Emirates Airline, one of the largest international carriers operating in Nigeria, suspended its flights to the country, citing its inability to access its income due to FX restrictions.
The airline had previously attempted to reduce operations and asked for the intervention of the authorities, but finally withdrew when the situation failed to improve. The release of Emirates caused an alarm in the aviation and business community, triggering concerns about the reputation of Nigeria as an investment destination.
Other airlines have followed suit by cutting the flight frequencies, increasing prices or removing local travel agencies from their distribution channels. Tickets for international trips to Nigeria increased and outside the Nigeria, in some cases, costing double or triple of what was billed in neighboring countries for similar distances.
A long path to resolution
The Central Bank of Nigeria (CBN), under the direction of the Governor of Godwin Emefiele at the time, tried to manage the crisis by releasing $ 265 million in 2022 to ensure the concerns of airlines. However, these efforts were sporadic and insufficient. The backlog continued to grow while the Nigeria FX reserves underwent immense pressure from the gaps in oil revenues, low foreign capital and government obligations.
Everything changed with the appointment of Yemi Cardoso as CBN governor at the end of 2023, followed by reforms that saw the liberalization of the FX market. The arrival of Cardoso reported a decisive change in the monetary policy of Nigeria. Under its leadership, the CBN is committed to cleaning up the entire Nigeria FX order book, estimated at around $ 7 billion, which included funds due to banks, manufacturers, oil companies and airlines.
Cardoso has introduced a range of reforms to restore investor confidence and stabilize the FX market. These include floating Nairas to reflect demand and market supply, the abolition of several exchange rates and the liberalization of capital controls that had long dissuaded foreign investors.
In March 2024, the Apex bank announced that it had managed to clean the backlog FX, a complaint checked thereafter by IATA, which confirmed that 98% of the trapped air funds had been reimbursed.
“Significant improvements have been made to Nigeria, Egypt and Ethiopia in the past year, Nigeria being no longer on the list of blocked funds,” said Kamil Al-Awadhi, IATA regional vice-president for Africa, the Middle East and Europe, during the annual general meeting of the association.
A region still in crisis
While Nigeria has now left the list, the African region and the wider Middle East continues to fight against blocked funds. IATA revealed that in April 2025, approximately $ 1.28 billion in revenue from world airlines remain unpatriased. Of this amount, $ 1.1 billion – 85% – is linked to Africa and the Middle East.
The Mozambique is now at the top of the list with $ 205 million in blocked funds, followed by the XAF zone – which includes Cameroon, Chad, the Central Republic, the Congo Republic (Congo -Brazzaville), Equatorial Guinea and Gabon – with $ 191 million, Algeria with $ 178 million, Lebanon at $ 142 million and Angola Dollars.
Al-Awadhi said 29 countries in the region are currently retaining airlines and have urged governments to prioritize aviation in the distribution of currencies.
“When airlines are unable to repatriate their funds, this seriously hinders their operations and limits the number of markets they can serve. The reduction in air connectivity hinders the competitiveness of countries, decreases the confidence of investors and labeling countries as a high-risk place to do business,” he warned.
“Strong connectivity is an economic catalyst and generates considerable economic and social advantages. We call on governments to prioritize aviation in access to currencies on the basis that air connectivity is an essential economic catalyst for the country. ”
A turning point for the overall image of Nigeria
However, confirmation of IATA is more than a technical update for Nigeria – it is a restoration of credibility. This comes at a time when the country seeks to attract new foreign investments and rebuild confidence in its financial system after years of instability.
In addition to cleaning the obstacles of foreign airlines on the Nigerian market, industry observers think that development could open the way to influx of investment, stressing that the country can slowly regain the confidence of the world aviation industry.
