CBN releases $265 Million amid Airline Crises

Nigeria’s central bank on Friday released $265 million to airlines operating in the country in a bid to calm ticket sales and stem an impending crisis in the country’s aviation sector.

There has been serious concern and reaction to the fact that hundreds of millions of dollars earned by foreign airlines operating domestically could not be repatriated due to foreign exchange shortage problems.

International airlines that operate domestically are raising fares and cutting flights because they cannot repatriate funds to their home countries.

This comes after Emirates airline had announced that it will cease operations in Nigeria from 1 September 2022 amid growing concerns that other airlines may follow suit.

The CBN announced that an analysis of the figure shows that $230 million was issued as a special foreign exchange intervention, while another $35 million was issued through SMIS retail auctions.

CBN Corporate Communications Director Osita Nwanisobi issued a statement saying CBN Governor Godwin Emefiele and his team discussed the development and what it means for the industry, travelers and member states of affected.

The Director further reiterated that banks were not opposed to companies transferring funds from the country to their home countries, adding that banks meant an orderly withdrawal for those who were interested.

“With Friday’s release, it is expected that operators and travelers as well will heave huge sighs of relief, as some airlines had threatened to withdraw their services in the face of unremitted funds for outstanding sale of tickets, CBN said.

 

 

 

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