The Central Bank of Nigeria (CBN) has successfully concluded payments for verified claims by airlines, infusing an additional $64.44 million into the foreign aviation sector.
The announcement was made on Tuesday by Hakama Sidi-Ali, the acting director of corporate communications at the CBN.
This latest payment marks a substantial increase, bringing the total verified sum disbursed to the aviation sector to an impressive $136.73 million, demonstrating the CBN’s commitment to resolving financial challenges faced by various industries.
Sidi-Ali emphasized the dedication of CBN Governor Olayemi Cardoso and the entire team to clearing the verified backlog of payments across all sectors. The aim is to restore confidence in the Nigerian foreign exchange (FX) market, with measures in place to improve liquidity and alleviate pressure on the national currency, the naira.
While expressing optimism that the market will respond positively to the injection of over $64 million, Sidi-Ali cautioned against speculation in the FX market, noting its potential negative impact on the naira. She urged the public to support ongoing reforms and assured that the CBN would uphold orderliness and professional conduct among market participants, allowing market forces to determine exchange rates.
The foreign aviation sector has faced challenges repatriating revenues since July 2022, resulting in disruptions to flight operations by major airlines. Emirates Airlines suspended operations to Nigeria, and British Airways (BA) temporarily closed its inventory in the global distribution system (GDS). The CBN responded to the impasse by releasing $265 million to settle outstanding ticket sales for foreign airlines operating in the country.
International Air Transport Association (IATA) reported a significant increase in the amount of unrepatriated funds, reaching $2.27 billion in April 2023. This makes Nigeria the global leader in unrepatriated airlines’ funds, highlighting the critical need for effective financial measures and interventions.
