President Bola Tinubu Directs CBN To Facilitate Quarterly Reconciliation with Foreign Airlines Over Trapped Funds
President Bola Tinubu Directs CBN To Facilitate Quarterly Reconciliation with Foreign Airlines Over Trapped Funds
President Bola Tinubu has issued a directive to the Central Bank of Nigeria (CBN) to establish a platform for quarterly reconciliation meetings with foreign airlines, aiming to resolve the issue of accumulated trapped funds.
The revelation was made by the Minister of Aviation and Aerospace Development, Festus Keyamo, during the ongoing African Aviation Summit in Abuja. Keyamo explained that this directive was a key reason for President Tinubu’s recent trip to the United Arab Emirates (UAE).
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Foreign airlines have faced difficulties in accessing their funds due to Nigeria’s foreign exchange (forex) policy. These trapped funds have been a longstanding issue.
Keyamo emphasized the need for a proactive approach to address these challenges and mentioned that the Federal Government is also working on enhancing forex supply to reduce the outstanding debt owed to foreign airlines.
In addition to the directive, the Minister unveiled three roadmap projects: Aerotropolis, Aircraft Leasing Company (ALC), and a Maintenance Repair and Overhaul (MRO) facility. He outlined five focus areas to make Nigeria an aviation hub, including infrastructure upgrades, ALC, MRO facilities, and ensuring forex availability.
The International Air Transport Association (IATA) has criticized Nigeria for imposing multiple charges on airlines operating within the country, which has hindered their ability to repatriate funds exceeding $800 million. Foreign airlines have faced challenges in exchanging Naira for foreign currency due to forex scarcity, leading to operational disruptions and financial strain.
IATA’s Vice President for Africa and the Middle East, Kamil Al-Alwadi, noted that Nigeria has the highest airport charges in Africa, with Abuja’s Nnamdi Azikiwe International Airport ranking as the most expensive. He called for a conducive environment for successful airline operations in Nigeria and highlighted the economic and infrastructure challenges facing the aviation industry in Africa.
