Home Business CBN Averts Crisis in Aviation Sector, Releases $265m to Airlines

CBN Averts Crisis in Aviation Sector, Releases $265m to Airlines

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The Central Bank of Nigeria (CBN), on Friday, released the sum of $265 million to airlines operating in the country, to settle outstanding ticket sales.

With the release of the funds, an impending crisis in the aviation sector over unremitted funds has been averted.
Some airlines had threatened to withdraw their services citing unremitted funds for outstanding sale of tickets in the country.

A breakdown of the figure showed that the sum of $230 million was released as special FX intervention while another sum of $35 million was released through Retail SMIS (Secondary Market Intervention Sales) auction.

The Director, Corporate Communications Department at the CBN, Mr. Osita Nwanisobi, confirmed the development, stating that the CBN Governor, Godwin Emefiele and his team were concerned about the development and its effects the sector, travelers and Nigeria in the comity of nations.

Nwanisobi reaffirmed that the CBN was not against any company repatriating its funds from Nigeria, adding, what the apex bank stood for was an orderly exit for those that might be interested in doing so.

With the CBN’s intervention, it is expected that operators and travelers would heave huge sighs of relief.

The International Air Transport Association (IATA), had last week, expressed disappointment with Nigerian government for the continual withholding of foreign airlines’ revenues, which made Emirates Airlines to stop flying to Nigeria’.

IATA’s Regional Vice President for Africa and the Middle East, Kamil Alawadhi revealed that the fund rose to $464 million in July, urged Nigerian government to prioritize the release of the funds.

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