The International Air Transport Association (IATA) has officially removed Nigeria from the list of countries with unrepatriated airline revenue, commonly known as blocked or trapped funds, bringing a significant close to a crisis that once threatened the collapse of international air connectivity in the country.
However, the association said other countries in Africa and the Middle East region are still highly indebted to airlines – a situation attributed to FX downturn.
Before Nigeria Came Clean
For years, Nigeria topped IATA’s list of countries where international airlines were unable to repatriate ticket revenues due to a chronic foreign exchange (FX) shortage. By 2023, Nigeria was holding on to over $850 million in funds belonging to global carriers, making it the worst-hit country in the world in this regard. The crisis escalated tensions between Nigeria and the global aviation industry, with airlines either reducing their services or suspending operations altogether.
One of the most significant consequences came 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 revenues due to FX restrictions.
The airline had earlier tried to reduce operations and sought intervention from authorities, but eventually withdrew completely when the situation failed to improve. Emirates’ exit caused alarm across the aviation and business community, triggering concerns about Nigeria’s reputation as an investment destination.
Other airlines followed suit by cutting flight frequencies, increasing fares, or removing local travel agencies from their distribution channels. Tickets for international travel in and out of Nigeria surged, in some cases costing double or triple what was being charged in neighboring countries for similar distances.
A Long Road to Resolution
The Central Bank of Nigeria (CBN), under the leadership of then-Governor Godwin Emefiele, tried to manage the crisis by releasing $265 million in 2022 to assuage airline concerns. However, these efforts were sporadic and insufficient. The backlog continued to grow as Nigeria’s FX reserves came under immense pressure from oil revenue shortfalls, low foreign capital inflows, and mounting government obligations.
Everything changed with the appointment of Yemi Cardoso as CBN Governor in late 2023, followed by reforms that saw the liberalization of the FX market. Cardoso’s arrival signaled a decisive shift in Nigeria’s monetary policy. Under his leadership, the CBN committed to clearing Nigeria’s entire FX backlog, estimated at around $7 billion, which included funds owed to banks, manufacturers, oil firms, and airlines.
Cardoso introduced a range of reforms aimed at restoring investor confidence and stabilizing the FX market. These included floating the naira to reflect market demand and supply, scrapping multiple exchange rates, and liberalizing capital controls that had long deterred foreign investors.
In March 2024, the apex bank announced it had successfully cleared the FX backlog, a claim later verified by IATA, which confirmed that 98 percent of trapped airline funds had been repaid.
“Significant improvements have been made in Nigeria, Egypt and Ethiopia over the last year, with Nigeria no longer on the list of blocked funds countries,” said Kamil Al-Awadhi, IATA’s Regional Vice-President for Africa, the Middle East, and Europe, during the association’s Annual General Meeting.
A Region Still in Crisis
While Nigeria has now exited the list, the broader African and Middle Eastern region continues to grapple with blocked funds. IATA revealed that as of April 2025, about $1.28 billion in global airline revenue remains unrepatriated. Of this amount, a staggering $1.1 billion—85 percent—is tied up in the Africa and Middle East region.
Mozambique now tops the list with $205 million in blocked funds, followed by the XAF Zone—which includes Cameroon, Chad, Central African Republic, Republic of Congo (Congo-Brazzaville), Equatorial Guinea, and Gabon—with $191 million, Algeria with $178 million, Lebanon at $142 million, and Angola with $84 million.
Al-Awadhi said 29 countries in the region are currently withholding airline revenue and urged governments to prioritize aviation in the allocation of foreign exchange.
“When airlines are unable to repatriate their funds, it severely impedes their operations and limits the number of markets they can serve. Reduced air connectivity hampers countries’ competitiveness, diminishes investor confidence, and labels countries as a high-risk place to do business,” he warned.
“Strong connectivity is an economic enabler and generates considerable economic and social benefits. We call on governments to prioritize aviation in the access to foreign exchange on the basis that air connectivity is a vital key economic catalyst for the country.”
A Turning Point for Nigeria’s Global Image
However, IATA’s confirmation is more than a technical update for Nigeria—it’s a restoration of credibility. It comes at a time when the country is seeking to attract new foreign investment and rebuild confidence in its financial system following years of instability.
Besides clearing the hurdles for foreign airlines to the Nigerian market, Industry observers believe the development could pave the way for investment influx, underscoring that the country may be slowly regaining the trust of the global aviation industry.
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