Mixed Reactions from Airlines as CBN Declares Forex Backlog Cleared with $64m

• The Central Bank of Nigeria (CBN) disburses an additional $64.44 million to airlines, totaling $136.73 million in verified payments
• CBN aims to clear all verified payment backlogs, boost forex market confidence, and collaborates with stakeholders to improve liquidity

The Central Bank of Nigeria (CBN) has declared the clearance of all verified claims by airlines, making an additional payment of $64.44 million to the concerned airlines. The acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, confirmed the figures in a statement on Tuesday, revealing that the total verified amount paid to the aviation sector now stands at $136.73 million.

Ali emphasized the commitment of the Governor, Olayemi Cardoso, and the CBN team to clear all verified payment backlogs across various sectors, aiming to restore confidence in the Nigerian foreign exchange market. She highlighted the collaborative efforts with stakeholders to improve liquidity within the forex market, aiming to alleviate pressure on the naira.

While expressing optimism about the positive market response to the injection of over $64 million, Ali urged participants in the foreign exchange market to guard against speculations that could adversely affect the naira.

The CBN issued a circular instructing authorized dealers in the forex market to refrain from reporting inaccurate and misleading information on financial market transactions. The circular cited ongoing investigations revealing instances of underreporting of transaction rates and the practice of ‘second cheques’ in foreign exchange and fixed-income transactions.

However, foreign airlines have contested the claim that all trapped funds have been paid. A representative of a foreign airline stated that while some trapped funds were received, it is inaccurate to assert that all funds have been settled. The representative clarified that the CBN cleared all IATA matured bids and tickets sold via BSP but mentioned that bids through banks and direct ticket sales by airlines are still pending.

President of the Association of Foreign Airline Representatives in Nigeria (AFARN), Dr. Kingsley Nwokoma, demanded a breakdown of the “verifiable bids” and emphasized that the amount paid so far is insufficient compared to the total owed to the airlines, suggesting a need for a systematic payment agreement.