Foreign Airlines Challenge CBN’s Claim of Settling Forex Backlog, Alleging $700 Million Still Trapped

Foreign airlines operating in Nigeria have raised objections to the Central Bank of Nigeria’s (CBN) announcement that it has cleared all outstanding backlog of valid foreign exchange claims. Despite the CBN’s assertion that it settled a balance of $7 million in pending forex backlog, the President of the Association of Foreign Airlines and Representatives in Nigeria (AFARN), Kingsley Nwokoma, stated in an interview with Leadership that approximately $700 million belonging to foreign airlines remained trapped in the country.

Nwokoma challenged the CBN to provide evidence of payment if it indeed cleared the backlog of FX belonging to foreign airlines. He expressed skepticism over the CBN’s claim, citing previous instances where the bank announced the clearance of forex backlogs without fully addressing the airlines’ outstanding claims. He emphasized the need for transparency, urging the CBN to disclose the details of payments made to each sector, including the foreign airlines.

The dispute arises from conflicting accounts regarding the settlement of forex claims. While the CBN maintains that it has resolved all verified claims by foreign airlines, Nwokoma insists that the airlines are still owed a substantial amount. He highlighted the airlines’ grievances, noting that they have repeatedly raised concerns about the outstanding payments, which have not been adequately addressed by the CBN.

Foreign airlines have been grappling with the issue of trapped funds in Nigeria for some time, leading to strained relations with the CBN. The airlines argue that the failure to release their funds hampers their operations and undermines their ability to conduct business effectively in the country.

The CBN’s assertion of clearing the backlog of forex claims is met with skepticism and calls for transparency from foreign airlines, who maintain that a significant amount of their funds remains trapped in Nigeria. The dispute underscores the challenges faced by foreign businesses operating in Nigeria and the need for greater clarity and accountability in the management of forex transactions.

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