The Central Bank of Nigeria’s (CBN) release of $265 million out of foreign carriers’ funds that are stranded in the country, effectively calmed frayed nerves in the aviation industry.?
?Importantly, it also doused mounting tension over feelers that more foreign airlines were preparing to announce withdrawal plans from Nigerian routes, coupled with galloping spikes in the prices of international airfares.?
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The aviation sector has lately been apprehensive over foreign airlines’ stranded funds, estimated to have reached $464 million as of July. Emirates Airlines, among others, had notified the government and its customers of plans to halt Nigerian operations, effective September 1, 2022.?
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Exits of foreign carriers that account for 80 percent of commercial aviation earnings to the Gross Domestic Product (GDP) would hobble the projected growth of the air transport sector and cost Nigeria $1.36 billion, or N567.12 billion (at $/N417) yearly.?
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However, the apex bank late Friday announced the release of $265 million to the airlines to settle outstanding ticket sales out of the $464 million trapped fund.?
Source: Guardian Nigerian