Contrary to assertions made by the Central Bank of Nigeria (CBN) regarding the resolution of outstanding foreign exchange (FX) obligations, foreign airlines maintain that the situation remains unchanged.
Kingsley Nwokeoma, President of the Association of Foreign Airlines and Representatives in Nigeria (AFARN), expressed skepticism regarding the CBN‘s claims, emphasizing that no tangible progress has been observed in clearing the trapped funds of foreign airlines operating in Nigeria.
“If they say they have cleared the trapped funds, they should show us figures. They should tell us how much has been cleared. The last I checked, the status quo still remains the same,” Nwokeoma said.
Hakama Sidi Ali, the acting director of corporate communications at CBN, announced in a statement on Wednesday that the bank had settled outstanding obligations totaling $1.5 billion, effectively resolving the residual balance of the FX backlog.
READ ALSO: US Man Pleads Guilty to Killing About 3,600 Eagles
Also, Bankole Bernard, chairman of the Airlines and Passengers’ Joint Committee (APJC) of the International Air Transport Association (IATA), corroborated the CBN’s assertion, indicating that the trapped funds of airlines had indeed been cleared.
Bernard explained that foreign airlines had been given the option to access their funds through banks using the Interbank Foreign Exchange (I & E) window rate.
However, he noted that many airlines were reluctant to accept this option due to the disparity between the I & E window rate and the rate at which they sold tickets.
Regarding the suspension of flight operations by Emirates in Nigeria, Bernard attributed it to diplomatic tensions between Nigeria and the UAE.
He stated that “Emirates cannot resume flight operations because of the diplomatic row they have with Nigeria. The rich and powerful still find their way to Dubai.
“The crimes Nigerians are committing in Dubai have made them refuse Nigerians from coming to Dubai. These crimes affect tourism. They do not want their country to be perceived as unsafe. Emirates still has their office in Nigeria, and they have staff they are paying salaries,” he said.
Highlighting Nigeria’s substantial debt in trapped funds, Bernard referred to data from the International Air Transport Association (IATA), revealing that Nigeria owed $812.2 million out of a global total of $2.27 billion. Nigeria ranked highest among countries with blocked funds, followed by Bangladesh, Algeria, Pakistan, and Lebanon.
