Trapped Funds: CBN Releases $265m To Foreign Airlines In Latest Strategic Move

August 26, 2022
Trapped Funds: CBN Releases $265m To Foreign Airlines In Latest Strategic Move
Trapped Funds: CBN Releases $265m To Foreign Airlines In Latest Strategic Move

In a strategic move to address the issue of trapped funds belonging to foreign airlines and check the brewing crisis in Nigeria’s aviation sector, the Central Bank of Nigeria (CBN) has released the sum of $265 million  to settle outstanding ticket sales.

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.

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

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

Last week’s announcement by the Middle East mega carrier, Emirates Airlines, to suspend flights to Nigeria as a result of the trapped funds controversy has triggered a lot of reactions both within and outside the country and brought to the fore the critical role air transport plays in the economy of any nation.

In a piece entitled, “Foreign Airlines And Their Nigerian Trapped Dollars,” a frontline business e-paper, Prime Business Africa, also took some shot in the matter via the paper’s mouthpiece – the editorial.

With the latest CBN’s release, therefore, 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.

 

 

 

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