Foreign Airlines Refute CBN’s Foreign Exchange Settlement Claim

Contrary to the Central Bank of Nigeria’s (CBN) announcement that it has cleared all outstanding foreign exchange obligations, representatives from foreign airlines have said that nothing has changed regarding Nigeria clearing foreign airlines’ trapped funds.

Speaking to Business Day, the president of the Association of Foreign Airlines and Representatives in Nigeria (AFARN), Kingsley Nwokeoma, said that the CBN should provide specific details on the supposed clearance of trapped funds if they claim to have cleared it.

Through its acting director of corporate communications, Hakama Sidi Ali, the CBN recently stated it paid $1.5 billion, claiming to have settled the foreign exchange backlog.

Nevertheless, Bankole Bernard, chairman of the Airlines and Passengers’ Joint Committee (APJC) of the International Air Transport Association (IATA), confirmed to Business Day that CBN’s claim is true. He said, however, that the airlines are reluctant to accept the funds at the current Investors & Exporters (I & E) window rate due to potential losses.

The discrepancy in exchange rates has led to airlines selling tickets at higher fares to mitigate losses, according to Bernard.

Last year, IATA reported that Nigeria had the highest amount of trapped airline funds globally, amounting to $812.2 million out of a total of $2.27 billion.

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