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The Central Bank of Nigeria (CBN) has been commended by Foreign airlines operating in Nigeria for swiftly clearing a backlog of foreign exchange.
The foreign airlines expressed their appreciation to the CBN for the clearance as part of their revenue from ticket sales. The Association of Foreign Airlines and Representatives in Nigeria (AFARN) stressed that the clearance serves as a relief for operators involved in flight services to and from the country.
The President of AFARN, Kingsley Nwokoma lauded the government for addressing the issue incrementally and he urged the CBN to consider adopting a quarterly payment plan for the remaining $700 million trapped funds with the banking sector.
The head of Financial Institutions Ratings at Agusto & Co, Ayokunle Olubunmi, highlighted the positive impact of clearing trapped funds and foreign exchange forwards on the value of the Naira. He emphasized that such payments would enhance investor confidence by facilitating the easy repatriation of funds.
Olubunmi acknowledged the CBN's efforts in clearing FX demand and matured FX forward, stating, "To be fair to the current CBN management, they have been trying their best."
It is noteworthy that CBN had recently fulfilled its commitment to clear the backlog of foreign exchange owed to foreign airlines. A verified claim of an additional $64.44 million concludes the payment.
The Acting Director of Corporate Communications at the CBN, Hakama Ali, confirmed that the total verified amount paid to the sector now stands at $136.73 million.
Ali assured stakeholders that the CBN, under the leadership of Governor Olayemi Cardoso, remains committed to clearing verified backlog payments across all sectors.
Ali cautioned against speculation, urging actors in the foreign exchange market to avoid actions that could adversely affect the Naira.
