Nigeria Tensions Rise as Foreign Airlines Challenge CBN's Assertion on Cleared Forex Obligations

Amidst assertions by the Central Bank of Nigeria (CBN) of successfully settling all outstanding foreign exchange (FX) obligations, foreign airlines have challenged the claim, asserting that the situation remains unchanged.

Kingsley Nwokeoma, President of the Association of Foreign Airlines and Representatives in Nigeria (AFARN), emphasized that no tangible progress has been made in clearing foreign airlines' trapped funds, urging the CBN to provide concrete figures to support their claims.

Conversely, Bankole Bernard, chairman of the Airlines and Passengers' Joint Committee (APJC) of the International Air Transport Association (IATA), corroborated the CBN's assertion, stating that the trapped funds have indeed been cleared.

However, he highlighted that foreign airlines are reluctant to access their funds through the prevailing I & E window rate, as it differs from the rate they used for ticket sales, leading to potential losses.

Bernard also addressed the ongoing suspension of Emirates' flight operations in Nigeria, attributing it to diplomatic tensions and concerns over crimes committed by Nigerians in Dubai.

With Nigeria owing $812.2 million in trapped funds, according to the International Air Transport Association (IATA), the dispute underscores broader challenges in managing foreign exchange and international relations in Nigeria's aviation sector.