Despite Villa propaganda, Nigeria does not know when debt will be cleared
By Jeph Ajobaju, Chief Copy Editor
Despite Aso Rock propaganda transmitted through the Central Bank of Nigeria (CBN), foreign airlines have lamented about 90 per cent of their $783 million funds trapped in the country has not been paid.
That means Nigeria is still owing them more than $700 million.
The airlines made the disclosure at a stakeholders’ forum convened in Lagos by Aviation and Aerospace Development Minister Festus Keyamo.
International Air Transport Association (IATA) data as of August 2023 shows Nigeria accounts for $783 million of airlines’ blocked funds.
Despite recent efforts to alleviate the situation, the airlines said a significant portion of those funds remains inaccessible to them.
International Airline Operators (IAO) Chairman Chima Kingsley explained funds received by international banks from the CBN accounts only for a fraction, less than 10 per cent, of the trapped funds.
“The bulk of the blocked funds are with Nigerian commercial banks. The bulk of the money has not been paid,” he said.
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Tinubu’s promise to clear debt
President Bola Tinubu two weeks ago promised to clear the estimated $7 billion outstanding foreign exchange (forex) obligations of the government on forex forwards contracts owed banks.
CBN sources later leaked it to the media money was being (or about to be) released to pay off the trapped funds as the CBN had started clearing the forex backlog to banks to ease pressure on forex
But challenges persist in disbursing the funds.
Domestic carriers, represented by United Nigeria Airlines Chairman Obiora Okonkwo, highlighted how their operational struggles coupled with trapped funds and limited access to forex impact them negatively, per The PUNCH.
He cited accumulation of aircraft maintenance fees due to the inability to source forex for payment.
Samsom Fatokan, IATA Area Manager of West and Central Africa, stressed the need to reduce operating costs and advocated for sector-specific support.
Keyamo gave an assurance efforts are underway to address the forex challenge.
He did not disclose the exact amount disbursed but reiterated the commitment of Abuja to resolving the gridlock in the coming weeks.
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