CBN ‘Clears’ Payment Of ALL Verified FX Claims By Foreign Airlines

The Central Bank of Nigeria (CBN) has announced the complete settlement of foreign exchange (FX) owed to all foreign airlines operating in the country.

The final tranche of $64.44 million brings the total disbursements to airlines to $136.73 million, effectively clearing all verified claims within the sector.

“The Central Bank of Nigeria, fulfilling its pledge to clear the backlog of foreign exchange owed foreign airlines in the country, has concluded the payment of all verified claims by airlines with an additional $64.44 million to the concerned airlines,” confirmed Mrs Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, on Tuesday.

This development underlines the CBN’s commitment to resolving outstanding FX obligations across all sectors. Mrs. Sidi Ali emphasized that Governor Olayemi Cardoso and his team are “doubly committed” to clearing the entire backlog and restoring confidence in the market. The airline sector payment signifies a major step towards achieving this goal.

Beyond settling existing debts, the CBN is actively working with stakeholders to enhance liquidity within the FX market, aiming to alleviate pressure on the Naira. Mrs. Sidi Ali expressed optimism that the latest injection of $64 million will positively impact the market. However, she cautioned against speculative practices and urged market participants to maintain responsible behaviour.

“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,” the CBN statement reads.

To secure long-term stability, the CBN seeks public support for its foreign exchange market reforms. Mrs. Sidi Ali called upon Nigerians to back these efforts, emphasizing the bank’s dedication to promoting orderliness and professional conduct. This, she explained, will allow market forces to determine exchange rates naturally, leading to a more sustainable and efficient system.

The tensions with the Emirates stand as a stark reminder of the broader challenges at play. The airline’s brief suspension highlighted the significant impact the FX backlog can have on passenger traffic and the aviation industry. Addressing Emirates’ specific concerns, along with those of other airlines, will be crucial to preventing future disruptions and ensuring seamless air travel connectivity for Nigeria.

To secure long-term stability, the CBN seeks public support for its foreign exchange market reforms. Mrs. Sidi Ali called upon Nigerians to back these efforts, emphasizing the bank’s dedication to promoting orderliness and professional conduct by all participants. This, she explained, will allow market forces to determine exchange rates naturally, leading to a more sustainable and efficient system.

The CBN’s settlement of airline debts and its commitment to address the broader FX backlog offer a glimmer of hope for restoring confidence in the Nigerian foreign exchange market. However, addressing concerns, fostering greater transparency, and collaborating with stakeholders, including airlines like Emirates, will be crucial for repairing strained relationships, preventing future disruptions, and achieving full market recovery.