Relief may finally be coming the way of foreign airlines operating in Nigeria as the Central Bank of Nigeria (CBN) prepares to commence disbursement of over $800 million in proceeds trapped in the country.
According to airline sources, many affected carriers have been contacted by the CBN to prepare for the release of funds that have been unable to be repatriated abroad due to Nigeria’s foreign exchange crisis. The exact amount to be disbursed and timeline remain unclear, but details are expected next week.
The massive backlog of trapped airline funds in Nigeria was recently highlighted by Willie Walsh, Director General of the International Air Transport Association (IATA), who confirmed Nigeria as the highest indebted country to foreign airlines globally.
The inability to repatriate revenues has forced airlines to remove lower cost inventory fares for travel to and from Nigeria, resulting in skyrocketing ticket prices. The expected disbursement by the CBN will come as a major relief, allowing carriers to reinstate competitive fares and inventory.
For Nigerian travellers, this news will be a very welcome development after months of inflated costs and limited options for international flights. Aviation analysts say the release of trapped funds could significantly improve travel dynamics and restore Nigeria’s connectivity to major global routes.
The CBN’s efforts are coming just in time, as recent currency reforms have helped stabilise the naira and address foreign exchange availability issues. Airlines and travellers alike will hope this leads to the full clearing of the lengthy backlog soon.
