The International Air Transport Association (IATA) has urged the governments of Nigeria, Venezuela and others countries to respect international agreements to which they are signatories, regarding repatriation of revenues.
Mr Tony Tyler, IATA’s Director-General and Chief Executive Officer, made the call at the ongoing Annual General Meeting of the organisation in Dublin, Ireland.
Tyler said in a statement issued by IATA’s Corporate Communications Directorate, said on Friday in Abuja, that total airline funds blocked from repatriation in Nigeria were nearing 600 million dollars.
According to the statement, IATA’s monitoring of blocked funds globally showed that the amount involved has exceeded five billion dollars with Nigeria and Venezuela as the top two countries involved.
It explained that repatriation issues in Nigeria arose in the second half of 2015 when the demand for foreign currency outpaced supply and the country’s banks were not able to service currency repatriations.
The further statement said that airline funds blocked from repatriation in Venezuela totalled 3.8 billion dollars.
It named the top five countries blocking repatriation of airline funds as Nigeria, Venezuela, Sudan, Egypt and Angola.
“Blocked funds are a problem in a diverse group of countries, some of them undergoing significant economic challenges, particularly with a fall in oil revenues.
“But one thing all five nations have in common is the urgent need for robust air connectivity that is being hampered by airlines’ difficulty in repatriating funds.
“Air connectivity is vital to all economies because the airline industry is a competitive business operating on thin margins.
“So, efficient repatriation of revenues is critical for airlines to be able to play their role as a catalyst for economic activity.
“It is not reasonable to expect airlines to invest and operate in nations where they cannot efficiently collect payment for their services,” the statement said.
According to the statement, strong connectivity is an economic enabler and generates considerable economic and social benefits, something that struggling economies need more than ever.
” It is in everybody’s interest to ensure that airlines are paid on time, at fair exchange rates and in full,” it added.
NAN
