The Central Bank of Nigeria (CBN) has announced a special
market intervention for airline operators, oil marketers, and agricultural
businesses to enable them clear a backlog of foreign exchange obligations.
In a notice to lenders issued yesterday, the CBN said it
planned to settle the bids through a combination of spot and short-term forward
deals. However, the apex bank did not specify the maximum amount of dollars it
will sell.
“Authorised dealers’ accounts with the central bank will be debited
in full for the naira equivalent of the dollar bid amount on a spot basis,” the
bank said.
It could be recalled that in May; the CBN published a list
of 36 items for which importers can source foreign exchange (Forex) from the
market excluding operators in the airline, oil, and agro-based industries.This
fresh Forex window is to grant them some reprieve following several stakeholder
engagement and meetings.
Meanwhile, the International Air Transport Association
(IATA)’s Area Manager, South West Africa, Samson Fatokun, said foreign airlines
have found it increasingly difficult to repatriate their earnings due to the
dollar shortage in the country brought on by the low earnings from crude oil
sales.
Fatokun, however, explained that IATA had been engaging
government through the Ministry of Transportation, CBN and the Vice President’s
office.
“We are engaging government through the ministry, CBN and
Vice President and government is giving the Aviation Ministry the best possible
attention the sector deserves. We are addressing the issues and government is
giving us support,” Fatokun had said.
CBN has been selling dollars since February in an effort to
improve liquidity and narrow the spread between the official and black market exchange
rates for the naira. Close to $5 billion has been sold, according to analysts.
By Chijioke Jannah
