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Nigeria has officially exited the International Air Transport Association’s (IATA) list of countries withholding airline revenues. At its peak, Nigeria owed foreign airlines a staggering $850 million, making it the worst global offender. This milestone signals progress in Nigeria's effort to rebuild confidence in its financial and aviation sectors.
  • Restored Airline Confidence – Foreign carriers can now repatriate earnings, reducing flight disruptions.
  • Economic Reputation Boost – Signals Nigeria is addressing FX liquidity challenges.
  • Lower Travel Costs – Fewer airline restrictions could stabilize ticket prices.
The Central Bank of Nigeria (CBN) began tackling the backlog by paying $265 million in 2022. Under President Tinubu’s administration, an additional $61.64 million was disbursed. Alongside this, reforms such as the floating of the naira helped ease dollar scarcity. IATA confirmed that Nigeria had successfully cleared 98% of its blocked airline funds.

With the financial gridlock resolved, airlines that previously suspended operations, such as Emirates and Iberia, may now return. This improves Nigeria’s air connectivity and sends a strong message to investors about the country’s commitment to resolving foreign exchange challenges. Increased tourism and trade are expected to follow.

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Despite this success, concerns remain. The naira's volatility continues to threaten sustained FX liquidity. Moreover, Africa still accounts for 85% of all global blocked funds, with $919 million trapped, particularly in Mozambique, Algeria, and countries using the CFA franc.

Travelers could see fewer flight cancellations, more competitive international ticket prices, and possibly the return or expansion of operations by major carriers like Ethiopian Airlines.
“This is a win, but Nigeria must prioritize aviation in FX allocations to avoid future traps.” – Kamil Al-Awadhi, IATA VP (Africa & Middle East)

“Clearing the backlog was necessary, but structural FX reforms are the real test.” – Economist, Lagos Business School
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While many have praised the Tinubu administration for resolving the crisis, some skeptics are asking whether the benefits will trickle down to everyday travelers. Others urge the government to focus on long-term FX stability rather than short-term fixes. Key things to watch include whether airlines increase their routes, if Nigeria can maintain FX policy stability, and whether other African nations will follow suit.

Nigeria’s removal from IATA’s blocked funds list is a major win, but sustaining this progress will require consistent foreign exchange policy reforms. It’s a turning point, not the finish line.