The Central Bank of Nigeria cleared a long-standing backlog of trapped foreign airline revenue in June 2024, releasing more than $831 million that international carriers had been unable to repatriate out of the country. The International Air Transport Association confirmed the disbursement, ending months of mounting pressure from airlines that had repeatedly warned they might scale back or suspend Nigerian operations if the funds were not released.
The blocked funds crisis had dominated discussion within Nigeria's aviation sector for much of 2024, with several carriers publicly signalling frustration over their inability to convert naira ticket sales into dollars and move the proceeds out of the country. Minister of Aviation and Aerospace Development Festus Keyamo cited the resolution of the backlog as one of his most significant achievements in office, describing it as central to restoring international airline confidence in the Nigerian market.
Years of Accumulated Pressure
Nigeria's blocked funds problem dated back years, tracing its roots to the same foreign exchange restrictions that had driven United Airlines, Iberia and other carriers to suspend Nigerian routes during earlier currency crises. By the time the Central Bank moved to clear the backlog in mid-2024, the unresolved funds had become one of the clearest symbols of the risk international airlines associated with operating in the Nigerian market.
A Foundation for Renewed Confidence
The clearance of the backlog was widely credited within the industry as a precondition for the wave of route announcements and resumptions that followed later in 2024, including Emirates' return to Nigeria in October after a two-year suspension tied to the same repatriation concerns. Analysts cautioned, however, that sustained confidence would depend on Nigeria avoiding a repeat build-up of blocked funds in future years, rather than treating the 2024 clearance as a one-off fix.