The Nigeria Senate has asked the Central Bank of Nigeria and the federal government to release the $717m trapped foreign Airline’s fund.
According to reports, this was the fallout of a motion on Wednesday sponsored by the Senate Chairman of the Aviation Committee, Biodun Olujimi.
Olujimi, represented by Senator Bala Na’Allah, the Vice Chairman of the Aviation Committee, urged the CBN to allocate $25 million to airlines operating in Nigeria at its dollar auction.
According to the lawmaker, the action of the federal government and CBN blocking Airline’s funds in Nigeria is dangerous to foreign direct investment.
“The total airlines blocked funds in Nigeria as of 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”, he said.
On several occasions in the past, the International Air Transport Association has warned that Airlines might quit operations over trapped funds in Nigeria.