The Central Bank of Nigeria (CBN) recently disclosed the disbursement of approximately US $61.64 million to foreign airlines through various banking channels, as revealed by Mrs. Hakama Sidi Ali, the Acting Director of the Corporate Communications Department at the CBN, during a weekend announcement in Abuja.

This strategic move forms part of the CBN’s ongoing commitment to reduce its outstanding liability to foreign airlines. Mrs. Ali emphasized that, in the past three months, the CBN successfully redeemed outstanding forward liabilities, totaling almost USD 2 billion. This proactive measure underscores the bank’s dedication to resolving pending obligations and fostering a robust foreign exchange market.

Mrs. Ali further explained that these disbursements represent the CBN’s continuous efforts to settle all valid outstanding forward transactions, with the overarching goal of alleviating the existing pressure on the country’s exchange rate. Anticipating a positive impact, she highlighted the potential boost to the Naira’s standing against major world currencies and the expected elevation of investor confidence in the Nigerian economy.

Concerns over the significant accumulation of funds blocked in Nigeria by foreign airlines, amounting to over 743.7 million dollars, were previously expressed by the International Air Transport Association (IATA) last year. In a letter addressed to the then Minister of Aviation, Hadi Sirika, IATA underscored the potential threat posed by the growing backlog of these funds to foreign direct investment and its potential adverse effects on airline operations, potentially leading to job losses.