CBN Offers Airlines $265m To Avert Aviation Crisis
- Moves to settle outstanding ticket sales
BY EDMOND ODOK – The Central Bank of Nigeria (CBN) has released $265 million to functional airlines for the settlement of outstanding ticket sales in a bold move to check a brewing crisis in the nation’s tottering aviation sector.
According to the apex bank, the breakdown of the figure indicates that $230 million would go as special FX intervention with the remaining sum of $35 million released through the Retail SMIS auction.
Director of the CBN’s Corporate Communications Department, Mr Osita Nwanisobi, who confirmed the development, said: “The Governor, Godwin Emefiele and his team were concerned about the development and what it portends for the sector and travelers as well as the country in the comity of nations”.
In a statement issued in Abuja on Friday, Nwanisobi also explained that the CBN 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”.
He said given the release, “it is expected that operators and travellers as well will heave a huge sigh of relief as some airlines had threatened to withdraw their services in the face of unremitted funds for the outstanding sale of tickets”.
The management of United Arab Emirates, UAE, flag carrier, Emirates Airlines, had on August 18, 2022, announced its decision to suspend all flights to and from Nigeria effective September 1, 2022, citing losses and adverse impact on their daily operations due to complaints of trapped funds in the country.
With sources hinting that the amount was in the region of about $85 million trapped within Nigeria despite moves to get the Federal Government repatriate the funds, the Airlines had however promised that “should there be any positive developments in the coming days regarding Emirates’ blocked funds in Nigeria, we will of course, re‑evaluate our decision”.
