Trapped Funds: CBN Releases $265m To Foreign Airlines

In a move to check a brewing crisis in the country’s aviation sector, the Central Bank of Nigeria (CBN) on Friday, released the sum of $265million to foreign airlines operating in the country, to settle outstanding ticket sales.

A breakdown of the figure indicates that the sum of $230 million was released as special FX intervention while another sum of $35 million was released through retail SMIS auction.

The apex bank’s director, corporate communications department, Mr Osita Nwanisobi, confirmed the release of the funds in a statement on Friday.

Nwanisobi said CBN Governor, Godwin Emefiele, and his team were concerned about the development and what it portends for the sector and travelers as well as the country among the comity of nations.

Mr. Nwanisobi reinterated that the bank was not against any company repatriating its funds from the country, adding that what the Bank stands for was an orderly exit for those that might be interested in doing so.

With Friday’s release of the trapped funds, it is expected that operators and travelers as well will heave huge sigh of relief, as some airlines had threatened to withdraw their services in the face of unremitted funds for outstanding sale of tickets.