Trapped funds: CBN to release another $150m to airlines

The Central Bank of Nigeria (CBN) has concluded plans to release $120 million by October 31, to international airlines whose stuck funds are yet to be cleared.

This is just as the CBN says it is unacceptable for foreign airlines to resort to ‘blackmail’ against the country especially as they fly as much as 21 frequencies into the country without reciprocity from Nigeria thereby disregarding the Bilateral Aviation Services Agreement (BASA).

The Apex Bank had released $265million of funds belonging to foreign airlines which got trapped in Nigeria due to the forex crisis the country is currently facing.

Godwin Emefiele, CBN Governor had on Monday said that the bank will release another $120 million of trapped funds owed to international airlines operating in the country during a meeting between the leadership of the house of representatives, the International Air Transportation Association (IATA), Airlines Operators of Nigeria (AON), and representatives of the federal government, including Hadi Sirika, minister of aviation.

Samson Fatokun, the representative of IATA, who was at the meeting made a submission that about $700 million of foreign airlines cash are still trapped despite the earlier intervention of the CBN.

He said the CBN should provide a timeline and how the funds are to be repatriated to assure the international airline operators.

“The airlines are reasonable by saying that give us a plan for repatriation,” he said.

The CBN governor however said the apex bank has been working to enable international airlines to repatriate their funds, hence the resolve in August to release $265 million to them, and that the money has been disbursed in bits with $120 million set to be due on October 31.

“Everyone is calling on CBN to release blocked funds, and I am doing everything I can to provide dollars for you to repatriate your money.

“We used our discretion to allocate $265 million to the foreign airlines. We did $110 million on the spot and the rest in 60 days forward. On that day, we allocated to IATA $32 million through UBA. Qatar Airways, $22.8 million through Standard Chartered; Emirates, $19.6 million through Access Bank; British Airway, $5.5 million through GTB; Virgin Atlantic, $4.8 million through Zenith and others.

“How then can they go about and begin to say that they have not received money? This is an extra allocation. This is something I have told you (foreign airlines) that we will continue to do so that you will not blackmail the country. $120 million will be due on the 31 of October,” Emefiele said.

Emefiele said it was unacceptable for foreign airlines to resort to ‘blackmail’ against the country because of their trapped funds.

He also said foreign airlines should respect BASA as it would tackle the problem of unrepatriated funds.

Ifeoma Okeke-Korieocha

Ifeoma Okeke-Korieocha is the Aviation Correspondent at BusinessDay Media Limited, publishers of BusinessDay Newspapers. She is also the Deputy Editor, BusinessDay Weekender Magazine, the Saturday Weekend edition of BusinessDay. She holds a BSC in Mass Communication from the prestigious University of Nigeria, Nsukka and a Masters degree in Marketing at the University of Lagos. As the lead writer on the aviation desk, Ifeoma is responsible and in charge of the three weekly aviation and travel pages in BusinessDay and BDSunday. She also overseas and edits all pages of BusinessDay Saturday Weekender. She has written various investigative, features and news stories in aviation and business related issues and has been severally nominated for award in the category of Aviation Writer of the Year by the Nigeria Media Nite-Out awards; one of the Nigeria’s most prestigious media awards ceremonies. Ifeoma is a one-time winner of the prestigious Nigeria Media Merit Award under the 'Aviation Writer of the Year' Category. She is the 2025 Eloy Award winner under the Print Media Journalist category. She has undergone several journalism trainings by various prestigious organisations. Ifeoma is also a fellow of the Female Reporters Leadership Fellowship of the Wole Soyinka Centre for Investigative Journalism.