Kamil Al-Awadhi, IATA’s regional vice-president for Africa, Middle East, and Europe (AME), spoke at a during the association’s recent annual general meeting (AGM).

He said while blocked funds remain a challenge in the region, there have been “significant” improvements in countries like Nigeria, Egypt and Ethiopia.

“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,” the vice-president said.

“However, countries in AME continue to top the blocked funds list. Mozambique is currently withholding the largest amount of blocked funds globally, followed by the XAF Zone (Cameroon, Central African Republic, Chad, Republic of the Congo (Congo-Brazzaville), Equatorial Guinea, Gabon) and Algeria and Lebanon.”

Al-Awadhi said as of April, a total of $1.28 billion is withheld globally, increasing from $1.7 billion in October 2024.

He said 29 AME countries are currently withholding international airlines’ revenues, with a total of $1.1 billion – representing 85 percent — being blocked in Africa and the Middle East.

“… out of that, $919 million is tied up in African countries,” the vice-president added.

According to a breakdown provided by the IATA official, countries with the highest amount of blocked funds in the AME as of April, include Mozambique ($205 million) XAF Zone ($191 million) Algeria ($178 million) Lebanon ($142 million) and Angola ($84 million).

Al-Awadhi bemoaned the impact of unrepatriated revenues, and stressed the importance of cash flow to airlines’ business sustainability.

He said 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 added.

“Strong connectivity is an economic enabler and generates considerable economic and social benefits.

“We call on governments to prioritise aviation in the access to foreign exchange on the basis that air connectivity is a vital key economic catalyst for the country.”

For years, blocked funds have been a subject of dispute between Nigeria and international carriers.

As of 2023, Nigeria was said to be withholding the of airlines’ revenue in the world, due to a chronic foreign exchange (FX) shortfall that plagued industries.

In response, aviation companies operations in Nigeria and local travel agents from issuing tickets.

As tensions flared, the Central Bank of Nigeria (CBN) under Godwin Emefiele, its erstwhile governor, to airlines to halt the crisis in the aviation sector in 2022.

The disbursements continued under the current administration, with an additional as Nigeria renewed its commitment to clear its outstanding FX backlog — estimated at about $7 billion.

In March 2024, the CBN announced that it successfully the FX backlog, with the IATA later confirming that Nigeria had 98 percent of blocked airlines’ funds.

The last reported blocked funds in Nigeria were about $850 million.