BREAKING: CBN Release $265 Million to Foreign Airline to Avert Shutdown

BY: News Peddlers 

The announcement comes as international airlines begin to phase out their operations in the country.

Emefiele/foreign airlines photo

The Central Bank announced the release of $265 million to foreign airlines amid threats by international carriers to halt operations in Nigeria due to the trapped funds.

According to Channels TV, the apex bank's spokesman, Osita Nwanisobi, revealed this on Friday.

Mr Nwanisobi stated that CBN Governor Godwin Emefiele and his team are genuinely concerned about the brewing crisis in the sector and what it means for travelers and the country.

He reiterated that the bank is not opposed to any corporation repatriating funds from the country, but that the bank requires an orderly withdrawal for those who are interested.

According to the breakdown, $230 million was granted as special Forex intervention, with the remaining $35 million issued through the Retail SMIS auction.

The announcement comes as international airlines begin to withdraw from the country, citing an inability to repatriate funds to their home countries.

Emirates Airlines had previously announced that it would suspend flight operations in Nigeria beginning September 1st, following several failed attempts by the foreign airline to recover $85 million of its over $600 million trapped in Nigeria.

In a related development, British Airways closed its inventory on its Nigerian operations on Friday, owing to the airline's inability to repatriate funds from ticket sales outside of Nigeria.

The International Air Transport Association (IATA) had previously expressed concerns about the Federal Government of Nigeria's decision to prohibit international airlines from remitting $450 million (N188.6 billion) in ticket sales proceeds to their home countries.

IATA urged the Buhari administration to release the funds as soon as possible, noting that failure to do so would jeopardize Nigeria's access to its services.

However, the latest development may force Emirate Air and British Airways to reconsider their withdrawal decisions.

SOURCE: CHA