The Central Bank of Nigeria (CBN) revealed that it has successfully disbursed $61.64 million to foreign airlines in collaboration with various Deposit Money Banks (DMBs). This move comes as part of CBN’s dedicated efforts to eliminate the backlog of matured foreign exchange in DMBs and reduce its liability to the airlines, as confirmed by Hakama Sidi-Ali, the acting director of Corporate Communications in a recent statement.
Sidi-Ali emphasized that the disbursement is a pivotal step towards resolving pending obligations and ensuring a well-functioning foreign exchange market. Furthermore, she highlighted that the CBN has also honored outstanding forward liabilities amounting to nearly two billion dollars in the last three months. Such actions underscore the CBN’s unwavering commitment to alleviating the current pressure on Nigeria’s exchange rate and fostering confidence in the country’s economy among global investors.
In addition to the $61.64 million disbursed, foreign airlines are reportedly facing a significant trapped fund amounting to approximately $800 million in Nigeria. The International Air Transport Association (IATA) has raised concerns over this issue, warning that failure to address these funds, primarily derived from ticket revenue, may lead to the withdrawal of certain foreign airlines from the Nigerian market.
IATA further emphasized that Nigeria currently holds the highest amount of airline-trapped funds globally, underscoring the urgency and significance of the disbursement initiatives undertaken by the CBN. With the hope of providing a substantial boost to the Naira against other major world currencies, this strategic move is anticipated to enhance investor confidence in the Nigerian economy, thus laying the foundation for sustained growth and stability in the aviation industry.
It is the fervent belief within the Nigerian financial sector that this initiative, coupled with ongoing efforts to settle all remaining valid forward transactions, will not only address the challenges faced by foreign airlines but also fortify the country’s economic outlook in the international landscape.
NAN
