‘Show Us the Money!’ Foreign Airlines Question CBN’s FX Backlog Clearance Claim

Foreign airlines have cast doubts on the Central Bank of Nigeria’s (CBN) assertion that it has resolved all valid foreign exchange backlogs, demanding evidence of payment to confirm the claims.

Mr. Kingsley Nwokeoma, President of the Association of Foreign Airlines and Representatives in Nigeria (AFARN), questioned the transparency of the process. In an interview with Vanguard, Nwokeoma emphasized the need for concrete proof of payment, stating, “If they’ve paid, they should let us know how much has been paid. Where is the evidence of payment? They should show us evidence of payments and we will thank them because payment is what we want. The backlog of trapped funds made foreign airlines stop releasing low inventory tickets.”

Nwokeoma further highlighted the discrepancy between the rates used by foreign airlines to sell tickets and the rates offered by the CBN’s Investors and Exporters (I & E) window. Despite being instructed to retrieve their funds from banks using the I & E window rate, foreign airlines have resisted due to the variance in rates.

In response to these concerns, last night, Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, issued a statement clarifying the CBN’s position. According to Ali, the CBN has successfully completed the payment of $1.5 billion to settle obligations to bank customers, effectively eradicating the residual balance of the FX backlog.

Ali’s statement read, “The Central Bank of Nigeria has announced that all valid foreign exchange backlogs have now been settled, fulfilling a key pledge of the CBN Governor, Mr. Olayemi Cardoso, to process an inherited backlog of $7bn in claims. Clearance of the foreign exchange transactions backlog is part of the overall strategy detailed in last month’s Monetary Policy Committee meeting to stabilize the exchange rate and thereby curb imported inflation, spurring confidence in the banking system and the economy.”

According to recent data, Nigeria tops the list of countries with blocked funds, accounting for $812.2 million, constituting 68.0 per cent of the total blocked funds. Other countries affected include Bangladesh ($214.1 million), Algeria ($196.3 million), Pakistan ($188.2 million), and Lebanon ($141.2 million).