Senate Asks CBN To Release $717.5m Trapped Airlines Funds
Senate Asks CBN To Release $717.5m Trapped Airlines Funds

Senate Asks CBN To Release $717.5m Trapped Airlines Funds

Senate Asks CBN To Release $717.5m Trapped Airlines Funds

The Senate has asked the Central Bank of Nigeria, (CBN) to urgently release the $717.5 million airlines funds trapped in the country.

It also called on the CBN to allocate $25 million to airlines operating in Nigeria at it’s forthrightly dollar auction.

The Senate made the resolution sequel to a motion by the chairman, Senate Committee on Aviation, Senator Biodun Olujimi, on Wednesday titled “current issues on airlines blocked funds in Nigeria”.

The upper chamber asked President Muhammadu Buhari to direct the CBN Governor, Godwin Emefiele, to pay up the blocked funds to the affected airlines.

It also asked the federal government to urgently reverse the current trend of increasing airlines’ blocked funds in Nigeria.

The Senate appealed to the airlines not to withdraw their services while efforts are on-going to resolve the issue.

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Presenting the motion on behalf of Olujimi, the Vice Chairman of the Committee, Senator. Bala Na’Allah, APC,Kebbi, noted that since January 2021, Nigeria had been the most challenging country in the world for the airlines to repatriate their funds to support their operation.

He said: “In February, Nigeria alone accounted for 44 per cent of total airlines blocked funds in the entire world.

“The total airlines blocked funds in Nigeria as at March amounted to $717,478,606, comprising matured bids that the CBN is yet to deliver, bids yet to mature and cash balances in airlines’ accounts for repatriation.“

“The matured bids not delivered by CBN amounted to $186.5 million, amounting to 26 per cent of total blocked funds, while three stakeholders, including IATA, Qatar Airways, and Ethiopian Airlines, accounted for 57 per cent of total blocked funds.

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