In recent developments, the Central Bank of Nigeria (CBN) has reported the disbursement of approximately US $61.64 million to foreign airlines through various banks. Mrs. Hakama Sidi Ali, the Acting Director of the Corporate Communications Department at the CBN, revealed this information in Abuja over the weekend.
The initiative is part of the CBN’s ongoing efforts to decrease its remaining liability to foreign airlines. Mrs. Ali highlighted that in the past three months, the CBN has also redeemed outstanding forward liabilities totaling almost USD 2 billion. This underscores the bank’s commitment to resolving pending obligations and maintaining a functional foreign exchange market.
Mrs. Ali emphasized that these payments demonstrate the CBN’s continuous efforts to settle all remaining valid forward transactions, aiming to alleviate the current pressure on the country’s exchange rate. The anticipated impact is expected to provide a substantial boost to the Naira against other major world currencies and enhance investor confidence in the Nigerian economy.
Last year, the International Air Transport Association (IATA) expressed concern about foreign airlines’ blocked funds in Nigeria, reaching over $743.7 million. In a letter to the then Minister of Aviation, Hadi Sirika, IATA warned that the growing backlog of international airlines’ blocked funds poses a potential threat to foreign direct investment in Nigeria and could adversely affect airline operations, potentially leading to job losses.
