CBN Resumes Clearing of FOREX Backlog of Foreign Airlines Operating In Nigeria

The Central Bank of Nigeria (CBN) has resumed clearing of foreign exchange backlog of foreign airlines operating in Nigeria.

Last November, airline operators said about 90 percent of $783 million of their funds were still trapped in Nigeria.

On Sunday, the apex bank’s acting director of corporate communication, Mrs. Hakama Sidi-Alli said $61.64 million was cleared out of the foreign exchange backlog of the foreign airlines.

This is apart from $2 billion also cleared in the past three months out of the outstanding forward foreign exchange liabilities of the apex bank, put at around $7 billion.

Sidi Ali explained that the $61.64 million was part of moves to show CBN’s commitment to clear the foreign exchange debt backlog pending when the foreign exchange market functions properly.

Last week, the first tranche of over $2 billion from Afreximbank’s $3.3 billion credit negotiated by Nigerian National Petroleum Company Limited was disbursed to the apex bank.

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The balance of over $1 billion from Afreximbank is expected to be remitted to CBN this week.

Sidi Ali further disclosed that, in the past three months, the CBN has also redeemed outstanding forward liabilities amounting to almost $2 billion.

This underscores the Bank’s commitment to the resolution of pending obligations and a functional foreign exchange market.

According to her, these payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, to alleviate the current pressure on the country’s exchange rate.

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 Nigerian economy.