AIRLINES HEAVE A SIGH OF RELIEF:
CBN Clears $7 billion Forex Backlog As External Reserves Hit $34.11bn
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President Bola Ahmed Tinubu, (Right), and Mr Yemi Cardoso, Governor of Central Bank of Nigeria, CBN
The Central Bank of Nigeria, CBN, has cleared the $7 billion foreign exchange (FX) backlog accumulated during Mr Godwin Emefiele’s tenure, inherited by the incumbent, Governor Yemi Cardoso.
The media statement from CBN on Wednesday, signed by Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications, confirmed the settlement of all valid forex (FX) backlog claims.
The statement affirmed that the consulting auditing firm engaged by the CBN, Deloitte Consulting, meticulously scrutinized all the transactions and ensured that only legitimate claims were honoured.
Also revealed in the statement was the meteoric rise in the nation’s external reserves which have attained a significant rise, thus reaching $34.11 billion as of 7th March 2024, the highest level in the past eight months.
The statement credited this month-on-month increase to the notable rise in remittance payments from Nigerians abroad, and the increased foreign investment in local assets, which included government debt securities and long-term government bonds.
Recall that the foreign airlines operating in Nigeria have for a couple of months been groaning about the inability to remit proceeds from ticket sales to their home country, which ran foul of the principles enshrined in the Bilateral Air Service Agreements, BASA.
The experience has put some of them on hold for their services on the Nigerian route.
At the last count, about $600 million of the airlines’ proceeds were reportedly trapped in Nigerian banks that could not source the USD value of the airline funds meant for repatriation.
Travellers are sure to begin soon to feel good the payment will have as the management of those international airlines affected will now be encouraged to provide the low-fare portal for Nigerian passengers.
Previously, the airlines had in a diplomatic move, removed the low fares from their portals and only the high fares were made available which was a subtle way to hedge the obvious losses they would accrue from the gross devaluation of the local currency against the USD.
Nigerians will eagerly be looking forward to seeing the impact of the payment in low-cost fares as severally demanded although to no avail, and without any consequence, by the air transport regulatory body, the Nigeria Civil Aviation Authority, NCAA.
Also adversely affected by the trapped funds are all the domestic airline operators as they had severally and collectively complained about one thing or the order to procure with forex but which the non-release of their fund had hindered.
Outspoken on the trapped funds were the Vice President of the Airline Operators of Nigeria, AON, Barrister Allen Onyema, Chairman of Air Peace, and the Spokesperson for the association, Professor Obiorah Okonkwo, who is the Chairman, of United Nigeria Airlines, UNA.
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