Senate intervenes in foreign airlines’ struggle to retrieve $717.4m trapped funds

A resolution urging the Central Bank of Nigeria to release $717,478,606 in airlines’ funds that are currently held in the nation was approved by the Senate on Wednesday.

Additionally, the upper chamber urged the CBN to contribute $25 million during its twice-weekly dollar auction to Nigerian airlines.

The resolutions were passed after a motion by Senator Biodun Olujimi (PDP-Ekiti) on “Current Issues on Airlines Blocked Funds in Nigeria” was discussed at plenary.

Sen. Bala Na’Allah (APC-Kebbi), vice chairman of the committee and Olujimi’s representative, made the motion on his behalf. Olujimi is the head of the Senate Committee on Aviation.

The upper chamber urged the Federal Government to act immediately to halt the upward trend of blocked airline funds in Nigeria.

Read Also: IATA addresses rise in foreign airlines’ exchange rate, ticket prices

The Senate urged President Muhammadu Buhari to order CBN Governor Mr. Godwin Emefiele to release the funds that have been stopped to the impacted airlines.

Additionally, the upper chamber urged domestic airlines to continue offering their services while attempts are being made to find a solution.

The motion’s sponsor, Senator Na’Allah, said that since January 2021, Nigeria has been the nation where it has been hardest for airlines to repatriate money to fund their operations.

In February, Nigeria alone accounted for 44% of the total airlines blocked funds in the world. As of March, the total amount of airlines blocked funds in Nigeria was $717,478,606, which includes matured bids that the CBN had not to deliver, bids that were yet to mature, and cash balances in airlines’ accounts for repatriation.

IATA, Qatar Airways, and Ethiopian Airlines together accounted for 33% of all blocked money.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now