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28
Thu, Mar

Trapped Funds: CBN Releases $265m To Foreign Airlines

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In a bid to check the current crisis in the country’s aviation sector, the Central Bank of Nigeria (CBN)  on Friday released $265 million to foreign airlines operating in Nigeria, in order to settle outstanding ticket sales. A breakdown of the funds shows that $230 million was released as special foreign exchange intervention while the sum of $35 million was released through Retail SMIS (Secondary Market Intervention Sales) auction.


This was disclosed in a statement issued by the Director, Corporate Communications Department, CBN, Mr. Osita Nwanisobi who stated that the apex bank was concerned about the development and its effect on the aviation sector.

He stated that the CBN was not against the repatriation of funds from the country by any company, adding that the bank only required an orderly exit by any company that might be interested in doing so.

The CBN said, “With Friday’s releases, it is expected that operators and travelers as well will heave huge sighs of relief, as some airlines had threatened to withdraw their services in the face of unremitted funds for outstanding sale of tickets”.

There have been serious concerns in Nigeria’s aviation sector over the inability of foreign airlines to repatriate hundreds of millions of dollars in funds due to the scarcity of foreign exchange.

Emirates Airlines announced last week its plans to suspend flights in Nigeria due to its inability to repatriate its funds from Nigeria.
In a similar move, British Airways announced its suspension of ticket sales over its trapped funds in Nigeria.

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