BASA Doesn’t Obligate CBN To Provide Forex For Repatriation – Emiefele

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The Central Bank of Nigeria, CBN, has stated that Bilateral Air Services Agreements, BASA, never made it obligatory for them to provide Foreign Exchange, FX, for repatriation by foreign airlines’ income.

This is coming against the backdrop of reports that the Federal Government is not honouring its BASA with foreign airlines in the repatriation of their incomes.

BASA Doesn’t Obligate CBN To Provide Forex For Repatriation – Emiefele

Foreign airlines collect Naira for their tickets to customers and exchange the same for foreign currencies for their operations. But recently they said they have been unable to get the exchange executed through the official foreign exchange market due to scarcity of foreign exchange resources.

However, while reacting to the airlines FX pressure, CBN Governor, Godwin Emiefele, urged home governments of foreign airlines flying into Nigeria to reciprocate by granting equal landing opportunities to Nigerian airlines to such countries, as means of reducing the pressure for foreign exchange.

“Nigerian airlines would not need FX for tickets in such cases, as their only demand for FX would be for the importation of planes and parts or services.

“The BASA never made it compulsory for CBN to provide FX for repatriation of foreign airlines income and that they should freely obtain such FX from the Exporters and importers’ Window.

“Notwithstanding, CBN will continue to treat airlines with priority and would clear the backlog but that they should ask their banks to obtain FX for them from the I & E Window.”

Source: Vanguard Newspaper