CBN GIVES $265 MILLION TO FOREIGN AIRLINES, BRINGING RELIEF.

In order to stop a crisis from developing in the nation's aviation industry, the Central Bank of Nigeria disbursed $265 million on Friday to domestic airlines that operate there.

There have been significant objections and comments regarding the hundreds of millions of dollars that international airlines operating in the nation earned but were unable to remit home due to issues with currency scarcity.

Due to their inability to transfer money back to their home nations, foreign airlines operating in the nation have started increasing ticket prices and cutting back on flights.

On September 1, 2022, Emirates Airlines announced that it would stop operating flights into Nigeria due to growing concerns that other airlines could take a similar action.

The CBN reported that a breakdown of the amount showed that $230 million had been issued as special foreign exchange intervention and another $35 million had been distributed through a retail SMIS auction.

The CBN's Director of Corporate Communications, Mr. Osita Nwanisobi, revealed this in a statement and added that Governor Godwin Emefiele and his staff were concerned about the development and what it portended for the industry, travelers, and the nation as a whole in the community of nations.

Nwanisobi retorted that the bank supported an orderly exit for anyone who could be interested in doing so, adding that the bank was not opposed to any corporation bringing money back to the country.

With Friday's release, it's anticipated that both operators and passengers will exhale sighs of relief. According to CBN, some airlines had threatened to stop offering their services if they weren't paid for outstanding ticket sales.

According to a breakdown of the amount, $230 million was released as a special FX intervention, and another $35 million was issued through the Retail SMIS auction.

However, BA informed Nigerian travel agencies on Friday that they would no longer be able to make new reservations or fulfill those that had already been booked in the country.

The UK airline did not give a justification for the choice or an estimated time frame for the suspension of ticket sales by Nigerian travel agencies.

However, BA affirmed that it was committed to the Nigerian market and would continue to operate flights there.

As a result of the move, Nigerian travelers who want to fly with a UK airline may need to book their flights online and maybe pay with domestic or international debit cards.

We have to temporarily adjust the method we sell our product in Nigeria, according to the notice to the travel brokers that Saturday PUNCH was able to receive. Trade partners are consequently unable to make new reservations or fulfill any existing ones made in Nigeria at this time.

Existing reservations may still be fulfilled through our Global Engagement Centers and lines, either voluntarily or involuntarily.

After a ticket has been reissued or revalidated, British Airways will become the owner of the reservation. We apologize for this temporary change in our operating procedures but nevertheless remain fully dedicated to serving the Nigerian market.

The change happened just a week after Middle Eastern airline Emirates Airlines announced that it would stop flying to Nigeria as of September 1, 2022. The Dubai-based airline attributed the change on its failure to bring $85 million in ticket sales revenue home.

The International Air Transport Association, a global organization that represents international airlines and is based in Switzerland, had previously warned Nigeria that additional airlines might stop flying to the country if the government did not take action to repatriate the $464 million stuck in Nigeria.