The Central Bank of Nigeria (CBN) yesterday issued $265 million to local airlines to settle unpaid ticket sales in an effort to stem the crisis in the country’s aviation sector.
According to a breakdown of the amount, $35 million was made available through a retail SMIS secondary market intervention sales auction, and $230 million was issued as a special FX intervention.
The CBN’s Director of Corporate Communications, Mr. Osita Nwanisobi, confirmed the report and stated that Governor Godwin Emefiele and his staff were concerned about the development and its implications on the industry, travelers, and the nation as a whole in the community of nations.
Mr. Nwanisobi clarified that the CBN supported an orderly exit for anyone who could be interested in doing so, adding that the bank was not opposed to any corporation bringing money back to the country.
Operators and passengers are anticipated to breathe a sigh of relief when the monies are released.
Due to unremitted revenues for outstanding ticket sales in the nation, certain airlines had threatened to discontinue service.
The move by the CBN came after Emirate Airlines threatened to halt its operations to and from Nigeria by September 1, due to its inability to repatriate $85 million trapped in Nigeria.
Nigeria’s forex crisis has impacted the aviation sector, at a time domestic and international airlines are also facing a sharp increase in aviation fuel.
The International Air Transport Association (IATA), the top global trade association of airlines, criticised Nigeria’s failure to allow international airlines to repatriate their profits, warning it may cause the country more damage.
According to IATA, the amount airlines have been unable to repatriate from the country rose to$464 million (N199.2 billion) in July.
