The Nigerian Senate has called on the Central Bank of Nigeria (CBN) and the federal government to release the $717 million trapped foreign airlines funds. This decision came after the Senate Chairman of the Aviation Committee, Biodun Olujimi, submitted a motion on Wednesday.
Senator Bala Na’Allah, the Vice Chairman of the Aviation Committee, who represented Olujimi, urged the CBN to allocate $25 million to airlines operating in Nigeria at its dollar auction. According to Na’Allah, blocking airlines’ funds in Nigeria could adversely affect foreign direct investment in the country.
In March, the total airlines’ blocked funds in Nigeria amounted to $717,478,606. The amount includes matured bids that the CBN failed to deliver, bids not yet mature and cash balances in airlines’ accounts for repatriation.
The International Air Transport Association has raised the alarm in the past, warning that the actions of the Nigerian government and CBN might force airlines to quit operations over the trapped funds in Nigeria.
