Trapped Funds: CBN to Release $120 Million to Foreign Airlines — Emefiele
The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, says the bank will release $120 million to settle outstanding trapped funds of international airlines operating in the country.
Mr Emefiele disclosed this on Monday during a meeting between the leadership of the House of Representatives, International Air Transportation Association, Airlines Operators of Nigeria and the Minister of Aviation, Hadi Sirika.
The CBN governor disclosed that the bank had in August resolved to release $265 million to the airlines; $110 million on the spot and the rest in 60 days. He added that the remaining money will be released on 31 October.
He accused some countries like the United Arab Emirates of threatening Nigeria with visa ban and suspension of flight operations.
“We used our discretion to allocate $265 million to the foreign airlines, broken down into spot and forward. We did $110 million on the spot and the rest in 60 days forward.
“On that day, we allocated to IATA; $32 million through UBA. Qatar Airways; $22.8 million through Standard Chartered, Emirates; $19.6 million through Access Bank, British Airway; $5.5 million through GTB, Virgin Atlantic; $4.8 million through Zenith and others.
“How then can they go about and begin to say that they have not received money? This is an extra allocation. This is something I have told you (foreign airlines) that we will continue to do, so that you will not blackmail the country. $120 million will be due on the 31 of October,” he said.
Mr Emefiele stressed that “I can print Naira, even though I have been accused of printing Naira but I cannot print dollar. We have to either earn it or borrow it.”
Mr Emefiele said that the solution to the problem is for countries to respect the Bilateral Aviation Services Agreement (BASA).
“When you allow Nigerian airlines to fly in your country, what the airlines will do is to charge Naira as we expect foreign airlines to charge.
“You cannot be flying 21 flights into Nigeria and you do not allow Nigerian airlines to land in your country and when they land, you intimidate them with sniffer dogs and do not allow them to carry out maintenance check,’’ he said.
The representative of IATA, Samson Fatokun, while reacting to the statement by the CBN governor, said despite the intervention by the CBN, there is still $700 million trapped in Nigeria.
“What we have right now is $700 million. Our balance is $700 million. The airlines are reasonable by saying that give us a plan for repatriation,” he said.
Speaking on the BASA, the CEO of Air Peace, Allen Onyema, said Nigerian airline operators cannot compete with Emirates and other foreign airlines unless they reduce their trips.
He stated that Emirates must reduce its daily allocated trips from four to two in order for Nigerian operators to compete.
