The Central Bank of Nigeria (CBN) has announced its commitment to settling pending obligations and boosting the functionality of the foreign exchange market.
The CBN Acting Director of Corporate Communications, Hakama Sidi Alia, emphasized the importance of resolving valid forward transactions to alleviate pressure on the country’s exchange rate.
In a statement, Alia mentioned that these payments are part of ongoing efforts by the CBN to address outstanding obligations, anticipating that this initiative will strengthen the Naira against major world currencies and enhance investor confidence in the Nigerian economy.
The International Air Transport Association (IATA) highlighted Nigeria’s position at the top of the list with blocked funds amounting to $792 million, followed by Egypt, Algeria, AFI zone, and Ethiopia. IATA had cautioned the CBN about potential consequences, suggesting that foreign airlines might leave the Nigerian market if the debt issue remains unresolved.
The government has committed to paying the old outstanding debt at the rates prevailing during the sales period. Alia further explained that foreign airlines have been obtaining foreign exchange at the I&E window amid these developments.