In a bid to fulfill its commitment to addressing the backlog of pending matured foreign exchange in Deposit Money Banks (DMBs), the Central Bank of Nigeria (CBN) has announced the disbursement of approximately $61.64 million to foreign airlines through various banks.
The initiative is part of the CBN’s ongoing efforts to reduce its remaining liability to airlines and clear the forex backlog held by commercial banks, aiming to alleviate pressure on the foreign exchange market.
In November 2023, foreign airline operators revealed that about 90% of their $783 million trapped funds remained unpaid. According to data from the International Air Transport Association, Nigeria accounted for a significant $783 million of the total blocked funds as of August 2023.
Confirming the recent payment, Mrs. Hakama Sidi Ali, the Acting Director of the Corporate Communications Department at the CBN, also disclosed that over the past three months, the apex bank had redeemed outstanding forward liabilities totaling almost $2 billion.
This move underscores the CBN’s commitment to resolving pending obligations and maintaining a functional foreign exchange market.
“These payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, with the aim of alleviating the current pressure on the country’s exchange rate,” stated Mrs. Hakama Sidi Ali.
It is anticipated that the CBN’s initiative will contribute significantly to strengthening the Naira against other major world currencies and bolster investor confidence in the Nigerian economy.
