The Central Bank of Nigeria (CBN) has taken significant strides in addressing the foreign exchange (FX) backlog by disbursing a total of $61.64 million to foreign airlines through various Deposit Money Banks (DMBs). This move is part of the CBN’s commitment to resolving pending matured FX transactions held in DMBs.

The announcement, conveyed by Mrs Hakama Sidi-Ali, the Acting Director of Corporate Communications for CBN, marks a crucial step towards alleviating the pressure on the country’s exchange rate and bolstering investor confidence in Nigeria’s economy. The CBN has been working diligently to reduce its outstanding liability to foreign airlines and fulfil its obligations.

In the past three months, the CBN has also redeemed outstanding forward liabilities amounting to nearly $2 billion. These actions underscore the CBN’s dedication to addressing pending obligations and fostering a well-functioning foreign exchange market.

The total sum of trapped funds from foreign airlines in Nigeria is estimated at approximately $800 million, primarily derived from ticket revenue. The International Air Transport Association (IATA) had expressed concerns over these funds, highlighting the risk of foreign airlines exiting the Nigerian market if the issue remained unresolved.

IATA further noted that Nigeria currently holds the highest amount of airline-trapped funds globally, emphasising the urgency of the situation.