The Senate has asked the Central Bank of Nigeria (CBN) to release $717, 478, 606 airlines funds trapped in the country.
The apex legislative Assembly also called on the CBN to allocate $25 million to airlines operating in Nigeria at its fortnightly dollar auction.
The Parliament made these resolutions following the consideration of a motion titled: “Current Issues on airlines blocked funds in Nigeria” sponsored by Senator Biodun Olujimi (PDP-Ekiti) during plenary.
Olujimi is the Chairperson, Senate Committee on Aviation while the Vice Chairman of the Committee, Senator Bala Na’Allah (APC-Kebbi) presented the motion on behalf of Olujimi.
The Chamber also called on the Federal Government to urgently reverse the current trend of increasing airlines blocked funds in Nigeria.
It called on President Muhammadu Buhari to direct the CBN Governor, Godwin Emefiele, to pay up the blocked funds to the affected airlines.
Moreover, the Senate appealed to the airlines operating in the country not to withdraw their services while efforts are on-going to resolve the issue.
Moving the motion, Na’Allah said that since Jan. 2021, Nigeria had been the most challenging country in the world for the airlines to repatriate their funds to support their operation.
“In Feb. Nigeria alone accounted for 44 per cent of total airlines blocked funds in the entire world.
“The total airlines blocked funds in Nigeria as at March amounted to $717,478,606, comprising matured bids that the CBN is yet to deliver, bids yet to mature and cash balances in airlines’ accounts for repatriation.
“The matured bids not delivered by CBN amounted to $186.5 million amounting for 26 per cent of total blocked funds while three stakeholders (IATA, Qatar Airways, and Ethiopian Airlines) accounted for 57 per cent of total blocked funds;
“A review of airlines’ blocked funds in Nigeria in the last six months shows an average month-on-month increase of $49.3million The consequences of these blocked funds are: Cheap tickets are not available in Nigeria because taxes and inflation would have eroded the profit when the funds are kept for a very long time.
“This makes tickets very expensive and limited because neighbouring countries get the cheap tickets because of prompt payments due to prompt repatriation of funds,” he stated.
In their separate contributions, supported the motion and voted to approve the prayers when subjected to voice vote by the President of the Senate, Ahmad Lawan.
