The Central Bank of Nigeria (CBN) has said that it has fulfilled its promise by clearing $64.44 million backlog of foreign exchange owed to airlines.
This latest disbursement brings the total verified amount paid to airlines to $136.73 million, marking a complete settlement of verified forex claims in the sector. However, this payment is 17% of the $800 million owed to airlines.
CBN restates commitment to clearing FX backlog
In a statement on Tuesday, Mrs. Hakama Sidi Ali, the CBN’s Acting Director of Corporate Communications, affirmed that Governor Olayemi Cardoso and his team are laser-focused on tackling outstanding obligations across other sectors, leaving no one behind.
She added that the CBN aims for a robust and liquid forex market, further warning participants against manipulative activities that could harm the Naira. Instead, she called for collaborative efforts and adherence to regulations to ensure market forces rightfully determine exchange rates.
The statement read:
- “According to her, 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 $64 million, 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.”
More Insights
- The CBN earlier said that it has released $500 million to various sectors in its determination to address the backlog of verified foreign exchange transactions.
- In the last three months, the CBN successfully cleared over $2.5 billion in overdue foreign exchange forwards, aiming to resolve the backlog of dollars in Africa’s largest economy.
- Foreign airlines operating in Nigeria earlier expressed dissatisfaction with the initial $61 million payment made by the federal government to address the $800 million in revenue owed to international carriers stuck in the country.
- The airlines described the amount as a little drop, stating that they might reconsider their ongoing flight operations in Nigeria due to the perceived lack of prioritisation by the government in resolving the issue of blocked funds.
- However, the CBN is conducting an independent forensic review through a renowned unnamed firm, which served as the basis for clearing existing FX backlog.
- The apex bank said that it will collaborate with relevant agencies to impose appropriate sanctions after a forensic review uncovered severe infractions, widespread abuse, and substantial non-compliance with market regulations.