…Releases $265 Million to Airlines To Settle Outstanding Ticket Sales
In a move to check a brewing crisis in the country’s aviation sector, the Central Bank of Nigeria (CBN) on Friday, August 26, 2022, released the sum of $265 million to airlines operating in the country, to settle outstanding ticket sales.
A breakdown of the figure indicates that the sum of $230 million was released as special FX intervention while another sum of $35 million was released through the Retail SMIS auction.
Confirming the release, the Director, Corporate Communications Department at the CBN, Osita Nwanisobi said the Governor, Godwin Emefiele and his team were concerned about the development and what it portends for the sector and travelers as well as the country in the comity of nations.
Nwanisobi retiterated that the Bank was not against any company repatriating its funds from the country, adding that what the Bank stood for was an orderly exit for those that might be interested in doing so.
With Friday’s release, it is expected that operators and travelers as well will heave huge sighs of relief, as some airlines had threatened to withdraw their services in the face of unremitted funds for outstanding sale of tickets.
Emirates Airlines had on Thursday, 18th of August 2022 announced the suspension of its flight operations in Nigeria from September 1, 2022.
It said the suspension became necessary following its inability to repatriate its funds from Nigeria.
International carriers operating in Nigeria have repeatedly complained about their inability to repatriate funds to their home countries.
They have raised this concern on many occasions with officials of the Federal Ministry of Aviation, as well as those at the finance ministry.
Blocked funds belonging to these airlines have risen to about $600m, as this is due to the inability of the Central Bank of Nigeria to make the United States dollar available for the carriers to repatriate.
In its statement on Thursday, Emirates Airlines stated that it “has tried every avenue to address our ongoing challenges in repatriating funds from Nigeria, and we have made considerable efforts to initiate dialogue with the relevant authorities for their urgent intervention to help find a viable solution.”
It added, “Regrettably there has been no progress. Therefore, Emirates has taken the difficult decision to suspend all flights to and from Nigeria, effective September 1, 2022, to limit further losses and impact on our operational costs that continue to accumulate in the market.
“We sincerely regret the inconvenience caused to our customers, however, the circumstances are beyond our control at this stage. We will be working to help impacted customers make alternative travel arrangements wherever possible.”
It, however, noted that should there be any positive developments in the coming days regarding Emirates’ blocked funds in Nigeria, the airline would, of course, re-evaluate its decision.
“We remain keen to serve Nigeria, and our operations provide much-needed connectivity for Nigerian travellers, providing access to trade and tourism opportunities to Dubai, and to our broader network of over 130 destinations,” the global carrier stated.
Also, on May 9, 2022, Airline Operators of Nigeria threatened to suspend their operations following a rise in the cost of jet A1 and other costs.
The airlines – Azman Air, Max Air, United Nigeria Airways, Ibom Air, Arik Air, Air Peace, Dana Air and Overland Airways – made this known in a letter addressed to the Minister of Aviation, Hadi Sirika while copying the Director General of the Nigerian Civil Aviation Authority, Captain Musa Nuhu.
Aviation fuel price (JetA1) has risen from N190 per litre to N700 and the airlines have revolted, stressing that no airline in the world can absorb the astronomical hike.
The airlines said with the current fuel hike, it has increased its fuel cost component from 40% to 95% in Nigeria and also affected the cost of a seat per head which should be at least N120,000.
OlusolaBello
