Central Bank approves $265 million for airlines to repatriate from Nigeria – Vophs Africa

In the latest incident to indicate the ongoing liquidity crisis in Nigeria, particularly related to the availability of dollars, the International Air Transport Association (IATA) recently complained that airlines have $464 million in revenue that they Cannot ship back from Nigeria. This is exacerbating a crisis that has led to an increase in flight tickets and the threat to the aviation sector of possible exits of major employers.

“Airlines can’t be expected to fly if they can’t realize the revenue from ticket sales. Lack of connectivity hurts the economy, hurts investor confidence, affects jobs and people’s lives. It has an effect. The group warned In a short Twitter thread that instantly went viral. The decision was cited by IATA based in Dubai. Emirates announces suspension of flights to Nigeria Since September as a cause for alarm.

On August 26, Nigeria’s central bank said it had made $265 million available for release to airlines. The amount appears to have been raised from the bank’s foreign exchange reserves and importers’ auctions. IATA, the International Trade Group for Airlines, Welcome hint. There is an implicit belief that the remaining withheld funds will be released.

The lack of dollar in Nigeria has affected the airlines.

In commercial banks in Lagos and Abuja, customers face restrictions on how many dollars they can withdraw in cash from personal accounts over the counter. Most bank-issued debit cards denominated in Nigerian naira are increasingly unusable for international transactions on Amazon and other websites, with monthly spending limits approaching zero. From about $4,000 in 2015The year of President Muhammadu Buhari’s first term.

Analysts have cited Nigeria’s insufficient oil revenues as one of the immediate causes of the dollar’s decline, citing production shortfalls linked to theft along pipelines. Low production means Nigeria has not benefited from the doubling of oil prices to above $100. Bonnie Light Variant) in the last two years.

Productivity problems have meant that efforts by the central bank’s governor, Godwin Emefeli, to crack down on currency speculators have come to nothing.

British Airways changed sales strategy

Emirates suspends flights to Nigeria after failing to return $85 million As the dollar shortage persists in Nigeria, the risk of other airlines leading it may not go away despite the central bank’s intervention.

As part of “temporary adjustments to operations”, British Airways has reportedly told its sales agents in Nigeria that Suspend new bookings.. “They just disable your Naira card from working on their website,” an agent told Vophs. On rumors that the airline may halt operations, a company spokesman said in an email that flights “will continue to operate as scheduled.” He declined to say how temporary the change in operations would be.

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