The Senate has called on the Central Bank of Nigeria (CBN) to release the huge sum of $717.4 million in airline funds currently trapped in Nigeria. The call was made during a Wednesday plenary session where Biodun Olujimi, PDP-Ekiti and Chairman of the Senate Committee on Aviation, presented a motion titled “Current Issues on airlines blocked funds in Nigeria.” Senator Olujimi called on the CBN to allocate $25 million to Nigerian airlines in the fourth-nightly dollar auction.
Presenting the motion on behalf of Senator Olujimi, Sen. Bala Na’Allah (APC-Kebbi) told the Senate that Nigeria has been the country most challenging for airlines to repatriate funds to since January 2021. In February, Nigeria recorded 44% of total airlines’ blocked funds in the entire world, a worrisome development that is only getting worse. To date, the total of blocked funds in Nigeria amounts to $717.4 million.
Airlines’ blocked funds affect Nigerian passengers greatly as cheap tickets are not readily available due to the taxes and inflation rates that eat into the airlines’ profits while their funds remain blocked. The Senate thus called for President Muhammadu Buhari to urgently direct the CBN Governor, Godwin Emefiele, to prioritize the payment of affected airlines.
The Upper Chamber also appealed to Ethiopian Airlines, IATA, and Qatar Airways to not withdraw their services and continue to operate as efforts to resolve the issue were underway. The Senators overwhelmingly voted to approve the motion’s prayers.
It is hoped that the CBN will take dividends soon to ensure that Nigerian airlines do not collapse, and the Nigerian passengers will not be deprived of affordable flights.
