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The Central Bank of Nigeria (CBN) has successfully disbursed $61.64 million to foreign airlines through deposit money banks, as announced by Hakama Sidi-Ali, the Acting Director of Corporate Communications, in a statement from Abuja on Sunday.
This disbursement reflects the CBN’s dedication to clearing the backlog of pending mature foreign exchange in Deposit Money Banks (DMBs). Mrs. Sidi-Ali emphasized that this initiative is part of the CBN’s ongoing efforts to reduce its remaining liability to the airlines.
Over the past three months, the CBN has also honored outstanding forward liabilities, amounting to close to two billion dollars. This commitment underscores the CBN’s determination to address pending obligations and maintain a functional foreign exchange market.
These payments are crucial in resolving valid forward transactions, aiming to alleviate the current pressure on Nigeria’s exchange rate. The anticipated outcome is a significant boost to the naira against major world currencies, fostering increased investor confidence in the Nigerian economy.
It is noteworthy that the total trapped funds of foreign airlines in Nigeria amount to approximately $800 million. The International Air Transport Association (IATA) had raised concerns, warning that some foreign airlines might consider leaving Nigeria if the trapped funds, primarily derived from ticket revenue, were not addressed.
IATA further highlighted that the Nigerian government currently holds the highest amount of airline-trapped funds globally. The CBN’s recent initiative is a strategic step towards resolving this issue and maintaining a positive trajectory for the country’s foreign exchange market.
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