No be small matter I go yarn today o! International Air Transport Association (IATA) don raise ol’boy alarm say airlines dey face huge financial wahala because billions of dollars from ticket sales dey stranded for different countries. Dem talk say dis wahala fit affect global air connectivity and economic growth well well.
Thomas Reynaert wey be Senior Vice President for IATA don talk say, ‘Just imagine say you dey run your business, but your money dey under lock and key for different country. Na wetin many airlines dey face right now.’ Dis blocked funds na money wey airlines earn for local currency, but dem no fit carry am come back to US dollar because of government restrictions or wahala wey dey for forex market.
Ontop sey dem dey sell tickets and provide services, millions of dollars dey remain blocked for different countries for long time. Reynaert talk say for aviation, we dey call am blocked funds, and e dey pose serious threat to the way we link the world and economic growth.
He clear talk say most airlines dey earn money from different countries, but dem major expenses like maintenance and salaries dey paid in US dollars. ‘For dis system to work well, when countries dey sign air services agreements, dem gatz agree say airlines fit carry dem money back to where dem dey operate.’ But some countries dey chop block dey restrict access to forex or dey limit how money fit come out, which dey cause operational wahala for airlines.
Na here di wahala for dem start o! E dey difficult to sustain operations if you no fit use your money wey you earn to pay bills. By October 2025, airlines don dey suffer blocked funds to di tune of about USD $1.2 billion. Reynaert emphasize say dem need to do timely repatriation in US dollars to fulfill dollar-based payments for leasing, fuel, maintenance, and salaries. Dis blocked funds dey expose airlines to currency depreciation and rising borrowing costs, plus e dey limit dem from upgrading fleet, expanding routes, or pursuing sustainability initiatives.
Na so dem dey dey call am ‘connectivity risk premium.’ When airlines dey respond, dem dey reduce flight frequencies, increase ticket prices, or even suspend routes entirely, wey make places like Nigeria no dey attractive for travelers. Nigeria own no be joke o, at one point, blocked funds reach $850 million, and economy tickets don dey fly reach thousands of dollars. Some airlines even stop flights go Nigeria while some reduce how often dem dey fly.
Reynaert drop some serious gist wey show how air transport dey play major role for global economy. ‘Every dollar wey person spend for air transport dey multiply across the economy. For 2023, aviation support about 86.5 million jobs across di globe and contribute $4.1 trillion to GDP, wey be 3.9% of di whole world GDP. Plus, e carry 33% of global trade by value, moving goods worth USD 8 trillion!’ Na wetin Reynaert talk, and e clear say aviation be serious business!
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