Good News for British Airways, Ethiopian Airlines, Others as CBN Settles $61.64m Forex Backlog
- The CBN has disclosed that it released $61.64 million to foreign airlines through various Nigerian banks
- It noted that the move signifies its commitment to resolving pending obligations and a functional forex market
- This followed an earlier report that foreign airlines are planning to leave the country over unpaid forex backlog
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The Central Bank of Nigeria (CBN) has disbursed $61.64 million to foreign airlines through various banks.
Source: Getty Images
The Apex bank made this known in a statement by Hakama Sidi Ali, its acting director of the corporate communications department, over the weekend in Abuja.
This brings the total backlog of forex cleared in the last three months to $2 billion, according to a New Telegraph report.
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This comes after the International Air Transport Association (IATA) in an interview, highlighted that international airlines faced challenges over trapped ticket revenues in Nigeria and other countries.
It stated that if the situation was not quickly resolved, it could lead to foreign airlines exiting the country.
CBN said it is committed to clearing backlogs
Ali stated that the development shows the bank's commitment to resolving pending obligations and a functional foreign exchange market.
She stated:
“In fulfilment of its commitment to eliminate the backlog of pending matured foreign exchange in Deposit Money Banks (DMBs), the Central Bank of Nigeria (CBN) has recently disbursed approximately US $61.64 million to foreign airlines through various banks.”
According to the bank, the initiative is part of an effort to limit its liability to airlines.
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She said the apex bank also redeemed outstanding forward liabilities of almost $2 billion in the past three months.
She added that the bank aims to alleviate the current pressure on the country's exchange rate with the payment.
She said:
“It is anticipated that this initiative by the CBN should provide a considerable boost to the Naira against other major world currencies and further increase investor confidence in the Nigeria economy.”
Legit.ng reported that four Nigerian airlines have over $54 million trapped with the CBN out of an estimated $800 million.
Air Peace, Azman Air, Max Air, United Nigeria Airlines, and others have raised concerns over the unpaid funds.
IATA calls out Nigeria, Ghana, others over foreign airlines' $1.68bn trapped fund
Legit.ng reported that IATA had voiced disapproval toward Nigeria and other African nations for their reluctance to permit international airlines to repatriate their profits.
The organisation highlighted that the accumulated funds currently trapped in African countries amount to an estimated $1.68 billion.
These concerns were expressed during discussions at the 55th annual general assembly of the African Airlines Association (AFRAA) held in Entebbe, Uganda.
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Source: Legit.ng
