Foreign airlines to get $120m from CBN, as Emefiele alleges blackmail

The Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele has disclosed that $120 million will be provided to foreign airlines to enable them repatriate their ticket revenue trapped in Nigeria.

He said the fund would be made available by October 31, 2022. This is in continuation of the $265 million that the central bank released in August after claims by foreign airlines that their revenue was trapped within the country.

Emefiele said the provision of the funds were gradual, and this had been explained to the foreign airlines prior to their protest in August, but he said the international airlines went ahead to blackmail the country.

The CBN governor made this known during a meeting with leadership of the house of representatives, Minister of Aviation, Hadi Sirika, International Air Transportation Association (IATA), Airlines Operators of Nigeria (AON), amongst others on Monday.

“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, broken down into spot and forward. We did $110 million on the spot and the rest in 60 days forward.

Read also:Court summons Emefiele over non-payment of $70m judgment debt

“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.

He explained that foreign countries need to allow Nigerian airlines also operate according to Bilateral Aviation Services Agreement (BASA) to enable the country earn in dollars because the CBN can’t print the US currency.

According to Emefiele, Nigerian airlines are frustrated by foreign authorities, and not allowed to adequately do their businesses.

“I can print naira, even though I have been accused of printing naira, but I cannot print dollar. We have to either earn it or borrow it.

“When you allow Nigerian airlines to fly in your country, what the airlines will do is charge naira as we expect foreign airlines to charge. You cannot be flying 21 flights into Nigeria and you do not allow Nigerian airlines to land in your country and when they land, you intimidate them with sniffer dogs and do not allow them to carry out maintenance checks.”

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