CBN clears additional $61.64m forex backlog to foreign airlines

The Central Bank of Nigeria (CBN) has recently disbursed approximately US $61.64 million to foreign airlines through various banks.

This information was confirmed by the Acting Director of the Corporate Communications Department at the CBN, Mrs. Hakama Sidi Ali, in Abuja on Friday, January 5, 2024.

Mrs. Sidi Ali further disclosed that, in the past three months, the CBN has also redeemed outstanding forward liabilities amounting to almost USD 2 billion. This underscores the Bank’s commitment to the resolution of pending obligations and a functional foreign exchange market.

According to her, these payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, with the aim of alleviating the current pressure on the country’s exchange rate.

It is anticipated that this initiative by the CBN should provide a considerable boost to the Naira against other major world currencies and further increase investor confidence in the Nigeria economy.

This initiative is part of the CBN’s efforts to decrease its remaining liability to the airlines.

Recall that the chairman of International Airline Operators, Chima Kingsley, in 2023 said that about 90 percent of their $783 million unrepatriated funds have not been paid.

The Chairman made this known at a stakeholders’ forum convened by Festus Keyamo, Minister of Aviation and Aerospace development, in Lagos last year.

The Central Bank of Nigeria (CBN) on November 1, 2023 however started clearing its foreign exchange (FX) forwards backlog estimated at $7 billion to improve liquidity in the country’s FX market.