The International Air Transport Association has revealed that airlines are still owed $700 million of their revenue which have been blocked in Nigerian banks.

IATA made the disclosure in a statement on Tuesday in reaction to the announcement by the Central Bank of Nigeria that it has released an additional $64.44 million airline of the blocked funds.

Welcoming the development, IATA stated that operators shouldn’t be punished for the significant drop of the naira against the US Dollar caused by the devaluation of the currency.

The association said that it would verify the fund release and work with the government to ensure that the environment remains conducive for its members’ business so that the country could remain connected with the international market.

It read, “The International Air Transport Association (IATA) welcomes the Central Bank of Nigeria’s announcement this afternoon that it has released an additional $64.44 million in blocked airline funds. We are consulting with our airline members to verify the release of their revenues.

“While this development is encouraging it’s crucial to recognise that approximately $700 million remains blocked with Nigeria’s commercial banks. As such there’s a considerable journey ahead in fully addressing the issue.

“This is exacerbated by the devaluation of the Nigerian Naira, which has dropped significantly against the US Dollar. Airlines should not be unfairly penalised by the lower exchange rate. We will continue to monitor the situation closely and work with the government to ensure that the environment remains conducive to ensuring Nigeria’s connectivity to international markets.’’