The Central Bank of Nigeria (CBN) has officially announced the fulfillment of payments for all verified claims by airlines, encompassing an additional $64.44 million provided to the respective airlines.
The CBN clarified that the payment is a tangible step in fulfilling its commitment to resolving the backlog of foreign exchange owed to international airlines operating within the country.
The confirmation of this information came from Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, as stated in an official release on Tuesday.
According to reports, the CBN’s forward contract obligations to banks amounted to $7 billion. The delay in repaying this debt has been cited as a major factor contributing to the current volatility in the foreign exchange market, resulting in the depreciation of the naira against the US dollar.
The CBN previously disbursed $2 billion to address a portion of its backlog of matured foreign exchange obligations to Deposit Money Banks.
The hurdle for foreign airlines in Nigeria lies in the complex process of converting ticket sales into foreign exchange.
The current circumstances have led to a significant accumulation, with the backlog now surpassing billions of dollars.
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Sidi observed that the most recent payment to airlines has elevated the total verified disbursements to the aviation sector to $136.73 million. Additionally, she emphasized that all verified claims from airlines have been successfully settled.
The statement reads, ‘The Governor, Olayemi Cardoso, and his team were doubly committed and would stop at nothing to ensure that the verified backlog of payments across all other sectors was cleared and confidence was restored in the Nigerian foreign exchange market.’
‘Furthermore, she assured that the CBN was working with stakeholders to ensure liquidity improves within the forex market, thereby reducing pressure on the Naira.’
‘While expressing optimism that the market would respond positively with the latest injection of over $64m, she admonished actors in the foreign exchange market to guard against speculation as such actions could hurt the Naira.’
‘Sidi Ali, therefore, urged the public to support the reforms in the foreign exchange market, adding that the CBN would continue to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market to ensure market forces determine exchange rates,’ the document stated.