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Despite $64m Released By CBN, IATA Says Airlines Still Owed $700m By Nigeria 

The International Air Transport Association (IATA) has insisted that the Nigerian government still owes foreign carriers about $700 million, even though the release of $64.44 million by the Central Bank of Nigeria was welcomed.

This comes after the CBN on Tuesday, announced the payment of an additional $66.44 million to all verified foreign exchange claims by airlines, stating that the disbursement to the airlines effectively brought to conclusion all outstanding verified settlements to the concerned aviation operators.

In a statement, CBN acting Director, Corporate Communications Department, Mrs. Hakama Sidi- Ali, stated that the payments were in fulfillment of its pledge to clear the backlog of FX owed foreign airlines in the country.

She said, “All the verified airline claims have now been cleared.”

 IATA on the other hand, in a statement on Tuesday, said that it was consulting with its airline members to verify the release of the funds.

IATA added, “The International Air Transport Association welcomes the CBN’s announcement this afternoon (on Tuesday) that it has released an additional $64.44 million in blocked airline funds. We are consulting with our airline members to verify the release of their revenues.

“While this development is encouraging it’s crucial to recognise that approximately $700 million remains blocked with Nigeria’s commercial banks.  As such there’s a considerable journey ahead in fully addressing the issue.

“This is exacerbated by the devaluation of the Nigerian Naira, which has dropped significantly against the US Dollar. Airlines should not be unfairly penalised by the lower exchange rate.

“We will continue to monitor the situation closely and work with the government to ensure that the environment remains conducive to ensuring Nigeria’s connectivity to international markets.”

The CBN had earlier in January, paid foreign airlines $61.64 million for airlines’ trapped revenue in the country.

Chioma Kalu

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Chioma Kalu

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