Forex Crisis: In Six Months, Foreign Airlines Repatriate N795.5bn From Nigeria

Foreign airlines repatriated N795.5 billion from Nigeria in six months, according to data from the Central Bank of Nigeria.

Data from Nigeria’s apex bank Balance of Payment compilation disclosed that airlines withdrew $1.76 billion (converted with N451 per US dollar) in the first and second quarters 2023.

The data also showed that the Total Credit to the Balance of Payment account from airline travel was $19.39 million (N8.75bn).

The amount on the debit side of the balance of payments includes how much was spent on tickets by passengers (N779.61 billion), cargo (N10.22 billion), and others (N5.65 billion).

Despite the development, foreign airlines have renewed threats to exit Nigeria if their trapped funds are not released.

In November 2023, foreign airlines lamented that about 90 per cent of their $783 million trapped funds had not been paid.

The Association of Foreign Airlines and Representatives Chairman, Mr Kingsley Nwokeoma, stated this during a stakeholders’ forum with the Minister of Aviation and Aerospace Development, Festus Keyamo.

Last December, the International Air Transport Association disclosed that $790 million in ticket revenue is currently trapped in the country.

According to the IATA Regional Vice President, Africa & Middle East, Kamil Alawadhi, Nigeria has the highest number of airlines’ blocked funds at $792 million, followed by Egypt ($348m); Algeria ($199m); AFI zone ($183m) and Ethiopia $128m.

Meanwhile, CBN said it has romped up efforts to clear the forex backlog to foreign airlines and other sectors.

CBN Acting Director of Communication, Sidi Ali, in a statement, said the bank “paid approximately $2 billion across various sectors, including manufacturing, aviation, and petroleum”.

She noted that $61.64 million of the $2 billion forex backlog went to foreign airlines.