CBN considers new round of bank recapitalization

CBN disburses $61 million to foreign airlines to resolve mature foreign exchange balances

The Central Bank of Nigeria (CBN) has announced that it has disbursed $61.64 million to foreign airlines through its various depository banks (DMBs).

According to a statement issued by the Acting Director, Corporate Communications, Ms. Hakama Sidi Ali in Abuja on Sunday, the disbursement is in fulfillment of the CBN’s commitment to clear the pending DMB maturing foreign exchange arrears.

Mr Sidiali said the initiative is part of the CBN's efforts to reduce its remaining liability to airlines.

He said the CBN had also redeemed nearly $2 billion in outstanding futures debt in the past three months.

“This underlines the CBN’s commitment to resolution of outstanding debts and a functioning foreign exchange market.

“These payments represent the CBN’s continued efforts to settle all remaining valid futures contracts with the aim of relieving pressure on the current domestic exchange rate.”

“This initiative is expected to significantly boost the naira against other major world currencies and further boost investor confidence in the Nigerian economy,” he said.

According to a report by NAN, the total amount of trapped funds of foreign airlines in the country is about $800 million.


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