Foreign airlines, yesterday, said they were yet to receive payment of their stuck funds, contrary to the Central Bank of Nigeria’s (CBN) clearance of all valid foreign exchange backlog.
Some airlines’ managers said they were yet to get any confirmation of the windfall from the banks.
It will be recalled that the apex bank announced that it has successfully cleared all valid foreign exchange backlogs, effectively eliminating a legacy burden of $7 billion.
Acting Director of Corporate Communications, Sidi Ali, stated that the clearance of the foreign exchange transactions backlog was part of the overall strategy detailed in last month’s Monetary Policy Committee meeting to stabilise the exchange rate and thereby curb imported inflation, spurring confidence in the banking system and the economy.
The International Air Transport Association (IATA), a clearing house for all major foreign airlines globally, had bemoaned the protracted foreign exchange liquidity crisis that has kept foreign airlines’ $812 million (as of January 2024 entry) trapped in Nigeria.
Sales manager of a European carrier told The Guardian that they were still expecting an update from their banks.
“As of this (Thursday) morning, nothing has changed. We had the news yesterday and we have been very excited by the disclosure. We are anxiously waiting for the end result and repatriation of funds to the headquarters,” he said.
Another source affirmed that the reconciliation usually takes some time at the bank’s end.
IATA earlier told The Guardian that while the FX liquidity crisis is not peculiar to the air transport sector, the Federal Government has no alternative than to avail a clear line of FX support to urgently save local airlines, and in turn, the economy from the slippery slope.
IATA disclosed that $1.68 billion in airline funds remain blocked across the continent, with Nigeria taking the lead. The backlog is despite repatriation from Angola, Ethiopia, Ghana, Nigeria, and Zimbabwe through IATA’s working with the respective governments.
