An additional $64.44 million out of the trapped funds belonging to airlines was paid yesterday by the Central Bank of Nigeria (CBN).
The apex bank said the payment was the final settlement of the verified foreign exchange (forex) owed to all foreign airlines operating in the country.
Yesterday’s payment brought the disbursements to the airlines to $136.73 million as verified claims within the sector.
The International Air Transport Association (IATA) insisted that over $700 million of the airlines’ funds was trapped in commercial banks.
Reacting to the CBN claim that the $64.44 million was the final tranche of the airlines’ verified claim, the global body disagreed with the apex bank.
The CBN confirmed the payment in a statement by its acting Director of Corporate Communications, Mrs. Hakama Sidi Ali.
The statement reads: “The Central Bank of Nigeria, fulfilling its pledge to clear the backlog of foreign exchange owed foreign airlines in the country, has concluded the payment of all verified claims by airlines with an additional $64.44 million to the concerned airlines.
“This development underlines the CBN’s commitment to resolving outstanding FX obligations across all sectors”.
Mrs Sidi Ali added: “The CBN Governor, Dr Olayemi Cardoso and his team are doubly committed to clearing the entire backlog and restoring confidence in the market. The airline sector payment signifies a major step towards achieving this goal.
“Beyond settling existing debts, the CBN is actively working with stakeholders to enhance liquidity within the FX market, aiming to alleviate pressure on the naira”.
Mrs Ali expressed optimism that the latest injection of $64 million will positively impact the market.
She cautioned against speculative practices and urged market participants to maintain responsible behaviour.
Expressing optimism that the market would respond positively with the latest injection of over $64 million, the CBN spokesperson admonished actors in the foreign exchange market to guard against speculation as such actions could hurt the naira.
The statement reads further: “To secure long-term stability, the CBN seeks public support for its foreign exchange market reforms”.
Mrs. Sidi Ali urged Nigerians to back the CBN efforts, emphasizing the bank’s dedication to promoting orderliness and professional conduct.
“This”, she explained, “will allow market forces to determine exchange rates naturally, leading to a more sustainable and efficient system.
“The tension with Emirates stands as a stark reminder of the broader challenges at play. The airline’s brief suspension highlighted the significant impact the FX backlog can have on passenger traffic and the aviation industry”.
In a statement, IATA said that it was consulting with its members to verify the CBN claim that it released an additional $64.44 million to foreign carriers.
It said: “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”.
The airlines’ body added that its concern for the delayed funds is the continuing drop of the naira.
“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”, the association said.
IATA added that it would “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”.
