The Senate, on Wednesday, urged the Central Bank of Nigeria (CBN) to release the sum of $717, 478, 606 airlines funds trapped in the country.
The upper chamber also called on the CBN to allocate $25 million to airlines operating in Nigeria at its forthright dollar auction.
These resolutions were sequel to the consideration and adoption of a motion titled: “Current Issues on airlines blocked funds in Nigeria” sponsored by Sen. Biodun Olujimi PDP-Ekiti South Senatorial district.
Senator Olujimi is the Chairman of the Senate Committee on Aviation.
Vice Chairman of the Committee, Sen. Bala Na’Allah (APC-Kebbi ) presented the motion on behalf of Senator Olujimi.
The upper chamber also called on the Federal Government to urgently reverse the current trend of increasing airlines blocked funds in Nigeria.
It also called on President Muhammadu Buhari to direct the CBN Governor, Godwin Emefiele to pay up the blocked funds to the affected airlines.
The upper chamber further appealed to the airlines operating in the country not to withdraw their services while efforts are ongoing to resolve the issue.
Moving the motion, Na’Allah said that since Jan. 2021, Nigeria has 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 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.
“The matured bids not delivered by CBN amounted to $186.5 million amounting to 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.
Senators in their contribution supported the motion and voted to approve the prayers when they were put to voice vote by Senate President Ahmad Lawan.
YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE
May Nigeria never witness another Buhari’s govt — Primate Ayodele
The leader of INRI Evangelical Spiritual Church, Primate Elijah Ayodele has said President Muhammadu Buhari-led Government performed…
‘IDAN’: All you need to know about trending Nigerian street slang
The hashtag ‘Idan’ is the latest Nigerian street slang that has been trending on social media for…
Murphy Afolabi: 7 things you probably don’t know about late Nollywood actor
Nigerian sensational actor and filmmaker, Murphy Afolabi, reportedly died on Sunday, barely 24 hours after…
WEEK BRIEF: 10th NASS’ power tussle, Seun Kuti’s assault on police… other top news
THE ongoing tussle for the principal office positions of the 10th National Assembly by the top members All Progressives Congress (APC) has…
SPOTLIGHT: Dennis Bergkamp, ‘non-flying Dutchman’ blessed with unrivalled skill, technique
Dennis Nicolaas Maria Bergkamp, born on May 10, 1969, in Amsterdam, Netherlands, is widely regarded as one of the…
Ph.D graduation of a Hausa-Yoruba Nigerian in America
Last Saturday, I attended the PhD graduation of a treasured mentee of mine by the name of Abdulbasit Kassim at Rice University in…
