- Domestic airlines in Nigeria, including Air Peace and Azman Air, face challenges with over $54 million trapped at CBN, affecting operations
- The trapped funds, linked to forex forward payments and Hajj operations, underscore broader forex access issues in the aviation sector
Amid the ongoing efforts by foreign airlines to repatriate their funds, amounting to $800 million, it has been revealed that at least four domestic airlines have over $54 million (N43.4 billion) trapped with the Central Bank of Nigeria (CBN). This money includes foreign exchange forward payments to the CBN and payments for participating airlines in the 2023 Hajj operations.
The trapped funds have reportedly affected the operations of these airlines, as they require dollars for aircraft maintenance, lease, and other obligations. Among the affected airlines are Air Peace, Azman Air, Max Air, and United Nigeria Airlines.
Foreign airlines have been facing challenges in repatriating their funds from Nigeria, leading to concerns about the impact on their operations. The CBN has started clearing the forex backlog, assuring that the process will continue until all obligations are addressed. However, the trapped funds for domestic airlines are contributing to difficulties in their operations.
While foreign airlines have been in the spotlight regarding repatriation challenges, the situation for domestic carriers highlights the broader issues related to access to foreign exchange in Nigeria. The aviation industry relies heavily on dollars for various expenses, and challenges in accessing these funds can impact the overall operations of airlines.
As the aviation sector navigates these challenges, there is a call for comprehensive measures to address forex-related issues for both domestic and foreign airlines. Resolving these challenges is crucial for the stability and growth of the aviation industry in Nigeria.
It is important for stakeholders, including the Central Bank of Nigeria and relevant government agencies, to work towards creating a conducive environment for the aviation sector by addressing issues related to forex access and fund repatriation. This will contribute to the country’s sustainability and development of the aviation industry.