CBN Clears FX Backlog With $2 Billion, Settles Verified Claims By Foreign Airlines

CBN Clears FX Backlog With $2 Billion, Settles Verified Claims By Foreign Airlines

In a significant stride toward economic stability, the Central Bank of Nigeria (CBN) has successfully completed the payment of all verified claims by foreign airlines, injecting an additional $64.44 million into the aviation sector…..CONTINUE READING

This latest disbursement brings the total sum directed to the aviation industry to a substantial $136.73 million.

Hakama Sidi-Ali, the Acting Director of Corporate Communications at the CBN, made the announcement on Tuesday, emphasizing the commitment of CBN Governor Olayemi Cardoso and his team to clear verified backlogs across various sectors. The move aims to restore confidence in the Nigerian foreign exchange (FX) market.

Sidi-Ali reassured stakeholders that the CBN is actively collaborating to enhance liquidity within the forex market, alleviating pressure on the local currency, the naira. While expressing optimism about the positive response to the injection of over $64 million, she cautioned against speculation in the FX market, as such actions could adversely impact the naira.

Encouraging public support for FX market reforms, Siri-Ali affirmed that the CBN will continue fostering orderliness and professional conduct among market participants, allowing market forces to determine exchange rates.

Foreign airlines have grappled with repatriating revenues since July 2022, reaching a total of $464 million. To address the issue, the CBN released $265 million to foreign airlines in November 2022, leading to the resumption of operations by Emirates Airlines and British Airways.

However, the outstanding amount continued to rise, reaching $743 million in January 2023, according to the International Air Transport Association (IATA). By April 2023, the unrepatriated funds surged to $2.27 billion, making Nigeria the global leader in unrepatriated airlines’ funds.