The Status Quo Still Remains”: Mixed Reactions Trail CBN’s Forex Clearance Claim.
The recent assertion by the Central Bank of Nigeria (CBN) regarding the closure of the remaining balance of the foreign exchange backlog has sparked mixed reactions from stakeholders.
According to a statement released by Hakama Sidi Ali, acting director of corporate communications at CBN, the financial regulator claimed to have completed its payment obligations to bank clients, effectively clearing the FX backlog.
However, stakeholders in the aviation industry have expressed divergent views on the matter, highlighting the impact of the development on their operations.
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The Association of Foreign Airlines and Representatives in Nigeria (AFARN) and the International Air Transport Association (IATA) have weighed in, presenting contrasting perspectives.
Kingsley Nwokeoma, President of AFARN, contends that despite CBN’s statements, no significant progress has been made in releasing the funds that foreign airlines have been grappling with. Nwokeoma emphasized the need for transparency, urging CBN to provide concrete figures to substantiate its claims.
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He asserted, “If they say they have cleared the trapped funds, they should show us figures. They should tell us how much has been cleared. The last I checked, the status quo remains the same.”
On the other hand, Bankole Bernard, head of IATA’s Airlines and Passengers’ Joint Committee (APJC), offered a different perspective. Bernard affirmed CBN’s assertion, stating that the airlines’ trapped funds had indeed been released.
He attributed the reluctance of foreign airlines to retrieve their funds to discrepancies in exchange rates, which rendered the process unfavorable for them. Bernard elucidated, “Although foreign airlines were given the chance to obtain their money from the banks using the I & E window rate, they declined because the rate at which they sold tickets differed from the current rate.”
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Moreover, Bernard addressed concerns regarding Emirates’ suspension of flights to Nigeria, attributing it to diplomatic tensions between the two countries. He highlighted the impact of criminal activities involving Nigerians in Dubai, which has led to restrictions on travel from Nigeria to Dubai. Despite these challenges, Bernard affirmed that Emirates maintains its presence in Nigeria, albeit with operational adjustments.
Last year, Nigeria accounted for the highest amount of trapped funds globally, amounting to $812.2 million out of $2.27 billion, according to data released by IATA.
In a related development, recent changes within the CBN have raised speculation about a restructuring at the top bank. Reports indicate the departure of some directors, signaling a potential shift in leadership under Olayemi Cardoso. Notably, some directors, reportedly appointed during the tenure of former CBN Governor Godwin Emefiele, have been asked to leave, marking a significant transition within the institution.
The developments surrounding CBN’s forex clearance claim and the restructuring within the institution underscore the evolving dynamics within Nigeria’s financial landscape, with implications for stakeholders across various sectors.
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