CBN Woos Foreign Airlines After Clearing $700m Forex Backlog

The Central Bank of Nigeria, CBN, has urged Nigerians to desist from actions capable of hurting the naira amidst the declining value of the national currency to the dollar.

The value of the naira has dipped compared to other major currencies in the last three months.

The apex bank made this appeal on Tuesday after revealing that it has cleared all the verified forex backlog owed foreign airlines operating in the country.

Recall that Emirate Airline suspended flights to Nigeria in October 2022 Nigeria citing blocked funds. All efforts by the federal government to lift the ban by the Dubai-based outfit has proved abortive.

A total of over $700 million belonging to Emirate and other foreign airlines was believed to have been trapped in CBN vaults.

But, on Tuesday, the apex bank spokesperson, Sidi Makama Ali said the trapped funds has now been released to the airlines, stressing that CBN also released over $64 million to the sector to ensure liquidity in the aviation sector.

She said the CBN “has concluded the payment of all verified claims by airlines with an additional $64.44 million to the concerned airlines,” the aim she stated is to restore confidence in the foreign exchange sector.

“The Central Bank of Nigeria, fulfilling its pledge to clear the backlog of foreign exchange owed foreign airlines in the country, has concluded the payment of all verified claims by airlines with an additional $64.44 million to the concerned airlines.”

“As the Governor said, the CBN’s focus is on addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years,” she said.

With the latest intervention by the Yemi-Cardoso-led government bank, Ali said stakeholders in the foreign exchange market must play by the rules to escape sanctions, stressing that a stable exchange rate will boost investor confidence and attract foreign investment.

“We urge all participants in the market to play by the rules. Transparency in the market will enable the fair determination of exchange rates and, by extension, guarantee stability for businesses and individuals alike,” she stated

The development has now brought the CBN total forex injection into various sector to over $3 billion in less than three months, according checks by the magazine.