Festus Keyamo, the Minister of Aviation and Aerospace, has clarified the status of trapped funds belonging to foreign airlines in Nigeria, stating that approximately $600 million is still held up in commercial banks, separate from the Central Bank of Nigeria’s (CBN) direct obligations.
The minister explained that the original debt to foreign airlines amounted to about $700 million, of which of which the CBN has successfully cleared $136.73 million.
The remaining balance is related to transactions foreign airlines conducted with commercial banks, and Keyamo emphasized that it is the banks, not the CBN, that owe the airlines the dollar equivalent.
During an address at the 10th Annual Aviation Workers Week and Award Night in Abuja, Keyamo underscored the government’s commitment to fulfilling its financial obligations to foreign investors. He noted that the CBN had met its commitments from forex auctions conducted in the past few years.
Addressing concerns about high airfares due to exchange rate fluctuations, Keyamo highlighted the government’s efforts to enhance the competitiveness of local airlines on international routes.
He emphasized the administration’s focus on obtaining aircraft for local airlines to compete in routes allowed by Bilateral Air Service Agreements.
The situation with foreign airlines’ trapped funds in Nigeria has been a significant challenge, involving the dynamics of forex liquidity and international business operations.
Despite the CBN’s efforts to address the issue, a substantial amount of airlines’ revenues remains trapped, impacting their operations.
The resolution of this matter is crucial for maintaining confidence in Nigeria’s economy and ensuring the smooth operation of foreign airlines in the country.
