CBN releases $265m to airlines over trapped funds

In a bid to check a brewing crisis in the country’s aviation sector, the Central Bank of Nigeria (CBN) on Friday released the sum of $265 million to airlines operating in the country to settle outstanding ticket sales.

Nigeria’s economy is bound to pay dearly should foreign airlines make good their threat to withdraw flight services over stuck funds estimated to have reached $464 million as of July 2022.

Experts say the exit of foreign carriers that account for 80 per cent of commercial aviation earnings to the Gross Domestic Product (GDP) will hobble the projected growth of the air transport sector and cost Nigeria $1.36 billion or N567.12 billion (at $/N417) yearly.

A breakdown of the figure released on Friday indicates that the sum of $230 million was given as special Forex intervention while another sum of $35 million was released through the Retail SMIS auction.

Confirming the release, the Director, Corporate Communications Department at the CBN, Mr. Osita Nwanisobi, said the CBN Governor, Godwin Emefiele, and his team were concerned about the development and what it portends for the sector and travelers as well as the country in the comity of nations.

Nwanisobi reiterated that the apex bank was not against any company repatriating its funds from the country, adding that what the CBN stood for was an orderly exit for those that might be interested in doing so.

With Friday’s release, it is expected that operators and travellers as well will heave huge sighs of relief, as some airlines had threatened to withdraw their services in the face of unremitted funds for the outstanding sale of tickets.

(Channels)