Association of airlines worldwide has issued a warning that if funds owed to its members remain frozen in African countries and elsewhere, there could be a disruption of air services. International Air Transport Association (IATA) stated that approximately $1.6 billion in funds are being withheld due to currency shortages or other issues in various African countries. Willie Walsh, Director General of IATA, pointed out that consumers in these markets will be the ones to suffer as airlines cannot continue providing services if they are not paid.

Money owed to airlines grew 25% in the last six months of 2022 alone, with Nigeria being the country holding back the most funds, followed by Algeria and Ghana.

Nigeria, in particular, is facing severe foreign currency shortages, preventing airlines from converting the local currency to repatriate revenues earned from ticket sales by foreign airlines.

Aviation Minister Hadi Sirika has said he can only continue to urge the central bank to make dollars available to airlines.

A spokesperson for the Central Bank of Nigeria did not immediately respond to a request for comment on Monday.

About half the $1.6 billion frozen in Africa is tied up in Nigeria, Reuters reported.