Foreign Airlines Demand Evidence of Payment as CBN Claims Clearing of $7bn Forex Backlog

Following reports that the Central Bank of Nigeria, CBN, has cleared all valid foreign exchange backlogs, foreign airlines have called for evidence of payment.

The President of the Association of Foreign Airlines and Representatives in Nigeria, AFARN, Mr Kingsley Nwokeoma, questioned the claim, stating that foreign airlines want proof of payment and the amount paid.

Nwokeoma also mentioned that foreign airlines have been told to get their funds from the banks using the rate of the I & E window but refused because the current I & E window rate differed from what they used in selling tickets.

Acting Director, Corporate Communications, Mrs Hakama Sidi Ali, in a statement last night, said the CBN had concluded the payment of $1.5 billion to settle obligations to bank customers, effectively settling the residual balance of the FX backlog.

Ali stated that the 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.

With $812.2 million, Nigeria tops the countries that account for 68.0 per cent of blocked funds, followed by Bangladesh ($214.1 million), Algeria ($196.3 million), Pakistan ($188.2 million), and Lebanon ($141.2 million).

As the CBN works to clear the backlog and stabilize the economy, foreign airlines and other stakeholders await evidence of payment and the impact of the measures on the overall economic landscape.