In a remarkable turn of events, the Nigerian naira has made significant gains against the United States dollar at the official market, marking a 1.5% appreciation from previous levels. According to data from FMDQ, the naira closed at N856.57 per $1 on Monday, a notable improvement compared to the N869.39 recorded last Friday.
The positive momentum saw the naira’s intraday high at N720.00 and low at N1,185 before closing at N856.57, signaling a renewed strength. This surge comes amidst the Central Bank of Nigeria’s (CBN) proactive measures to address the backlog of international airlines’ trapped funds in the country.
The CBN’s recent announcement of disbursing approximately $61.64 million to airlines through various banks reflects its ongoing efforts over the past three months, clearing outstanding forward liabilities. This brings the total backlog cleared to $2 billion, highlighting the CBN’s commitment to resolving pending obligations and alleviating foreign exchange pressure.
Hakama Sidi Ali, the Acting Director of CBN’s Corporate Communications Department, emphasized that the bank’s actions aim to bolster the naira and increase investor confidence in Nigeria’s economy. The resolution of these challenges is crucial, as it not only impacts the country’s foreign exchange stability but also influences investor sentiment and economic growth.
The urgency to resolve this issue was further underscored by the International Air Transport Association’s (IATA) criticism of Nigeria and other African countries for hindering international airlines from repatriating their profits. With an estimated $1.68 billion of trapped funds in African countries, the impediment to repatriation has been a major obstacle for the aviation industry’s growth and development on the continent.
The significance of these developments cannot be overstated, as they hold the potential to enhance Nigeria’s standing in the global economic landscape and strengthen its trade relationships. The resolution of the forex backlog is not just a financial matter but a pivotal step in elevating the country’s economic credibility and fostering trust among international partners.
As Nigeria continues to navigate economic challenges, the resolution of the airlines’ forex backlog serves as a beacon of progress and resilience, underscoring the country’s determination to address critical issues and promote a conducive environment for trade and investment.
