CBN releases $265 million for airlines amid flight suspension threats
The Central Bank of Nigeria (CBN) announced on Friday that it has released $265 million to airlines operating in the country to settle overdue funds from ticket sales.
In a statement issued by the bank's director of corporate communications, Osita Nwanisobi, he said CBN Governor Godwin Emefiele and his team were concerned about airlines' inability to repatriate their Nigeria funds and what this bodes for the sector and travelers as well as the country in the concert of nations.
“A breakdown of the figure indicates that $230 million was released as special foreign exchange intervention, while another $35 million was released through a retail SMIS auction," the statement read in part.
Mr. Nwanisobi said the bank was not against a company repatriating its funds from the country and what the CBN wanted was an orderly outflow of funds for those who might be interested in doing so. p>
"With Friday's release, operators and travelers are expected to breathe a huge sigh of relief, as some airlines had threatened to withdraw their services in the face of undisbursed funds for ticket sales in course,” he added.
The CBN's decision came after Emirates Airlines threatened to halt operations to and from Nigeria by September 1, due to its failure to repatriate $85 million trapped in Nigeria .
The forex crisis in Nigeria has impacted the aviation sector, at a time when domestic and international airlines are also facing a surge in aviation fuel.
The International Air Transport Association (IATA), the world's largest airline trade association, has criticized Nigeria's failure to allow international airlines to repatriate profits, warning it could cause more of damage to the country.
According to IATA, the amount airlines were unable to repatriate from the country rose to $464 million (N199.2 billion) in July.
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The Central Bank of Nigeria (CBN) announced on Friday that it has released $265 million to airlines operating in the country to settle overdue funds from ticket sales.
In a statement issued by the bank's director of corporate communications, Osita Nwanisobi, he said CBN Governor Godwin Emefiele and his team were concerned about airlines' inability to repatriate their Nigeria funds and what this bodes for the sector and travelers as well as the country in the concert of nations.
“A breakdown of the figure indicates that $230 million was released as special foreign exchange intervention, while another $35 million was released through a retail SMIS auction," the statement read in part.
Mr. Nwanisobi said the bank was not against a company repatriating its funds from the country and what the CBN wanted was an orderly outflow of funds for those who might be interested in doing so. p>
"With Friday's release, operators and travelers are expected to breathe a huge sigh of relief, as some airlines had threatened to withdraw their services in the face of undisbursed funds for ticket sales in course,” he added.
The CBN's decision came after Emirates Airlines threatened to halt operations to and from Nigeria by September 1, due to its failure to repatriate $85 million trapped in Nigeria .
The forex crisis in Nigeria has impacted the aviation sector, at a time when domestic and international airlines are also facing a surge in aviation fuel.
The International Air Transport Association (IATA), the world's largest airline trade association, has criticized Nigeria's failure to allow international airlines to repatriate profits, warning it could cause more of damage to the country.
According to IATA, the amount airlines were unable to repatriate from the country rose to $464 million (N199.2 billion) in July.
Support the integrity and credibility journalism of PREMIUM TIMES
Good journalism costs a lot of money. Yet only good journalism can guarantee the possibility of a good society, an accountable democracy and a transparent government.
For free and continued access to the best investigative journalism in the country, we ask that you consider providing modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you help sustain relevant journalism and keep it free and accessible to everyone.
Donate
[embedded content]TEXT ANNOUNCEMENT: Call Willie - +2348098788999
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