Nigeria: Government to Help Foreign Airlines Repatriate N120 Billion

Apparently bowing to pressure from the international community, the Federal Government yesterday assured foreign airlines that the difficulty being experienced in repatriating funds would soon be resolved.

The Guardian gathered that the Ministry of State for Aviation and the Central Bank of Nigeria (CBN) were already working out a solution to the problem, to ensure that the airlines repatriate an estimated sum of N120 billion stuck in the economy.

It would be recalled that the International Air Transport Association (IATA) last week estimated that no less than N120 billion ($600 million) belonging to foreign airlines was stranded in Nigeria, appealing to government to ensure immediate release of the funds.

Sources at the ministry yesterday confirmed that talks with the CBN were already at advanced stages, with every likelihood that the funds would be released before the end of this month.

The money in question was proceeds from sale of tickets by the airlines in the last 12 months, which could not be repatriated due to government's policy on foreign exchange.

Minister of State for Aviation, Hadi Sirika at a meeting with Airline Operators of Nigeria (AON), had also assured that foreign exchange would soon be accessible to both foreign and local airline operators.

Sirika, in a response to claims that the bailout measures were only for the foreign airlines, said: "I am not aware that there is any disparity between domestic and foreign airline operators as regards accessing foreign exchange and I can assure you that this would not happen under our watch because we have a primary purpose of promoting and sustaining businesses in Nigeria, which would, in turn, attract more investors.

"I have been to CBN to resolve forex matter, and I would not stop. I have put a call across to the Governor of CBN, and I would ensure that both domestic and foreign airline operators have access to forex as against the rumoured disparity in terms of access."

He continued: "No matter how bad the forex situation is, I would tidy the way and ensure that things are to the advantage of the airline operators because you must be able to access hard currency to remain in business."