The Central Bank of Nigeria (CBN) has revealed that it disbursed approximately $61.64 million to foreign airlines through various Deposit Money Banks (DMBs) in the country.

Additionally, the CBN has successfully redeemed outstanding forward liabilities totaling around $2 billion in the last three months, bringing the total to approximately $2.062 billion.

This foreign exchange (FX) intervention, confirmed by the CBN’s acting Director of Corporate Communications, Mrs. Hakama Sidi, underscores the bank’s dedication to clearing pending matured foreign exchange in banks and alleviating pressure on the exchange rate.

Sidi clarified that this initiative formed a crucial part of the apex bank’s strategy to reduce its outstanding liabilities with the airlines.

She said, “This underscores the CBN’s commitment to the resolution of pending obligations and a functional foreign exchange market.”

She mentioned that these payments mark a consolidation of CBN’s continuous efforts to settle all remaining valid forward transactions, aiming to alleviate the current pressure on the country’s exchange rate.

Through this recent intervention, the central bank aims to significantly strengthen the naira against major global currencies and bolster investor confidence in the economy.

Moreover, the federal government has recently received $2.25 billion out of a $3.3 billion foreign exchange (FX) facility from the African Export–Import Bank (Afreximbank).

This long-awaited credit support aims to alleviate the acute FX shortage in the country that has constrained economic activities and dampened investors’ confidence.

President Bola Tinubu had previously assured Nigerians in December of his administration’s dedication to resolving the FX backlogs by injecting funds into the market.

It’s estimated that existing FX backlogs range between $7 billion and $10 billion, requiring clearance to enhance investor confidence.

Some investors have already departed due to persistent liquidity constraints affecting the economy.

Afreximbank, serving as the mandated lead arranger, in conjunction with United Bank for Africa (UBA) as the local arranger, finalized a $3.3 billion liquidity support for Nigeria through a structured financing arrangement with the Nigerian National Petroleum Company (NNPC).

It was gathered that the transaction, releasing $2.25 billion as the initial tranche into the nation’s coffers, aims to alleviate FX illiquidity in the country.

The remaining balance is anticipated to arrive this month, with UBA serving as the onshore depository bank for the transaction.

The deal involves other key players such as Gunvor, Sahara Energy, and additional major oil traders set to join the parties.

Aligned with Tinubu’s Renewed Hope Agenda, this transaction aims to stabilize the FX market and alleviate the inflationary pressures that have affected the Nigerian economy since the administration’s inception.