Aviation Finance Transport

Experts laud CBN for injecting $265m into aviation sector

Some stakeholders have commended the Central Bank of Nigeria (CBN) for injecting $265million into the nation’s aviation sector.

This action, the stakeholders said would bailout some of the foreign airlines out of the shortage of dollars .

The apex bank, on Friday, released the sum of $265million to settle outstanding ticket sales for foreign airlines.

The release was made in a bid to check brewing crisis in the sector.

A breakdown of the figure indicates that the sum of $230 million  was released as special FX intervention, while another sum of $35 million dollars was released through Retail SMIS auction.

A Professor of Economics at the University of Ibadan, Prof. Lanre Olaniyan, described the gesture as a welcome development.

According to Olaniyan, some of the airlines that threatened to pull out of the country’s aviation sector will now have a rethink.

He, however, said that the inability of the airlines to repatriate their monies in the first place would affect confidence.Experts laud CBN for injecting $265m into aviation sector

“”It is a welcome development, but like any other business, confidence will be low. Confidence is what makes businesses to thrive.

“Most of the airlines will now be treating Nigeria with caution, ” he said.

According to Mr Okechukwu Unegbu, a former President of the Chattered Institute of Bankers of Nigeria (CIBN), the apex bank only did what it ought to have done earlier.

He described the release as debt that was being repaid, adding that the release could even have implications for the country’s foreign exchange reserves.

“The CBN ought to have settled the problems with the airlines before it got out of hand,” he said.

A personnel of a foreign airline, Isaac Olanipekun, commended the CBN for taking bold steps to solve the dollar crunch facing the aviation industry.

He called on the Federal Government and the CBN to ensure that such a situation does not recur.

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