Nigeria faced being blacklisted by foreign airlines if the issue of over $802 million trapped airline funds are not amicably resolved.
Nigeria has the highest blocked funds in Africa and the world.
The total amount of blocked funds in Africa is $1.6bn, of which Nigeria has $802 million.
The International Air Transport Association warned that Airlines might quit operations.
IATA warned the Nigerian government that the situation could hamper air connectivity, economic growth, and the development of the country’s aviation sector.
Willie Walsh, the Director-General of IATA, spoke on Monday while launching “Focus Africa”, a new initiative to strengthen aviation’s contribution to Africa’s economic and social development.
The project will also improve passengers’ and shippers’ connectivity, safety, and reliability.
“Airlines may be forced to reduce their service in the countries blocking funds; this is a significant issue to airlines and IATA. It can affect African aviation’s growth,” Walsh noted.