FX backlog: CBN disburses $61.4m to foreign airlines

In fulfilment of its commitment to eliminate the backlog of pending matured foreign exchange in Deposit Money Banks (DMBs), the Central Bank of Nigeria (CBN) says it has disbursed approximately $61.64 million to foreign airlines through various banks.  The initiative is part of the CBN’s efforts to decrease its remaining liability to the airlines and […]

In fulfilment of its commitment to eliminate the backlog of pending matured foreign exchange in Deposit Money Banks (DMBs), the Central Bank of Nigeria (CBN) says it has disbursed approximately $61.64 million to foreign airlines through various banks. 

The initiative is part of the CBN’s efforts to decrease its remaining liability to the airlines and clear the forex backlog to commercial banks in order to ease pressure on the foreign exchange.

Recall that in November 2023, foreign airlines operators disclosed that about 90 per cent of their $783m trapped funds have not been paid. According to data from the International Air Transport Association, as of August 2023, Nigeria accounted for a substantial $783m of airlines’ blocked funds.

However, the Acting Director of the Corporate Communications Department at the CBN, Mrs. Hakama Sidi Ali, who confirmed this latest payment, further disclosed that, in the past three months, the apex bank also redeemed outstanding forward liabilities amounting to almost $2 billion.

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This, she said, underscored the Bank’s commitment to the resolution of pending obligations and a functional foreign exchange market.

“These payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, with the aim of alleviating the current pressure on the country’s exchange rate,” she said.

It is anticipated that this initiative by the CBN should provide a considerable boost to the Naira against other major world currencies and further increase investor confidence in the Nigeria economy.