Senate urges CBN to release $717.5m trapped airlines funds

The Nigerian Senate has encouraged the Central Bank of Nigeria (CBN), to urgently release the $717.5 million airlines funds trapped in the country.

The lawns also urged the CBN to allocate $25 million to airlines operating in Nigeria at its forthrightly dollar auction.

This is as they asked President Muhammadu Buhari to direct the CBN governor, Godwin Emefiele, to pay up the blocked funds to the affected airlines, just as it appealed to the airlines not to withdraw their services while efforts are on-going to resolve the issue.

The senate also called on the Federal Government to urgently reverse the current trend of increasing airlines’ blocked funds in Nigeria.

Resolutions of the Senate on Wednesday, were sequel to a motion, titled “Current Issues on airlines blocked funds in Nigeria”, sponsored by the Chairman, Senate Committee on Aviation, Senator Biodun Olujimi, PDP-Ekiti South.

Presenting the motion on behalf of Olujimi, the Viice Chairman of the Committee, Senator. Bala Na’Allah, APC,Kebbi, noted that since January 2021, Nigeria had been the most challenging country in the world for the airlines to repatriate their funds to support their operation.

He said: “In February, Nigeria alone accounted for 44 per cent of total airlines blocked funds in the entire world.

“The total airlines blocked funds in Nigeria as at March amounted to $717,478,606, comprising matured bids that the CBN is yet to deliver, bids yet to mature and cash balances in airlines’ accounts for repatriation.“

“The matured bids not delivered by CBN amounted to $186.5 million, amounting to 26 per cent of total blocked funds, while three stakeholders, including IATA, Qatar Airways, and Ethiopian Airlines, accounted for 57 per cent of total blocked funds.

“A review of airlines’ blocked funds in Nigeria in the last six months shows an average month-on-month increase of $49.3million.

“The consequences of these blocked funds are: Cheap tickets are not available in Nigeria because taxes and inflation would have eroded the profit when the funds are kept for a very long time.

“This makes tickets very expensive and limited because neighbouring countries get the cheap tickets because of prompt payments due to prompt repatriation of funds.”

Senators in their contributions, supported the motion and voted to approve the prayers when they were put to voice vote by president of the Senate, Senator Ahmad Lawan.