By Observers Times Monitoring Unit
President Bola Ahmed Tinubu has reaffirmed his administration’s commitment to stabilizing the aviation sector, disclosing that the Central Bank of Nigeria (CBN) is aggressively clearing outstanding liabilities owed to foreign airlines. This move, the President noted, is a critical step in restoring international confidence and strengthening the long-standing bilateral relationship between Nigeria and the United Kingdom.
The President made these remarks on Wednesday at the State House during a high-level meeting with a delegation from British Airways (BA), led by Chief Operating Officer Colm Lacy. The visit coincided with the airline’s 90th anniversary of operations in Nigeria.
Clearing the ‘Foreign Line’: CBN’s Mandate
Addressing the concerns regarding trapped funds—a major friction point for international carriers in recent years—President Tinubu highlighted that resolving these financial bottlenecks was a priority from his first day in office.
“You’ve seen that since I assumed office, the outstanding liabilities and other hiccups that are hindrances to our relationship are being resolved by the Central Bank of Nigeria,” the President told the delegation. “We hope to strengthen all of that. Nigeria is undergoing deep-seated reforms to transform our aviation industry and every aspect of our economy. We must meet global standards and encourage people-to-people connections while promoting the essence of trade and partnership.”
The “foreign line” of credit and the ability of airlines to repatriate their earnings have been central to the administration’s economic diplomacy. By prioritizing the settlement of these obligations, the President aims to ensure that Nigeria remains a competitive and reliable destination for global aviation players.
Keyamo Announces Relief Packages
The President’s disclosure follows a briefing by the Minister of Aviation and Aerospace Development, Festus Keyamo, SAN. The Minister revealed that the Federal Government has approved a “generous discount” on specific outstanding fees owed by airline operators to government agencies.
According to Keyamo, this intervention is designed to cushion the effect of the surging cost of Jet A1 fuel and prevent disruptions in air travel. Keyamo also lauded British Airways for its recent compliance with local content directives, noting that the airline now serves Nigerian indigenous dishes on its outbound flights from Lagos and Abuja.
“British Airways has shown leadership by operating brand new aircraft on the Nigerian route and embracing our policy to support local caterers. This is the kind of partnership that benefits both our economy and our people,” Keyamo stated.
90 Years of Partnership
Reflecting on the milestone, BA’s Colm Lacy described Nigeria as a “most valued market” rather than just a destination. He noted that the airline’s journey in Nigeria, which began in 1936, has supported generations of students, entrepreneurs, and families.
“Every day our services support Nigerian entrepreneurs, students, families, and tourists. Nigeria is a long-standing, valued market with which we share strong business, educational, and cultural ties,” Lacy said. He further commended the CBN’s renewed commitment to resolving foreign exchange matters, which he said has significantly boosted the confidence of foreign investors.
Diplomatic Gains: The UK State Visit
The meeting also served as a follow-up to President Tinubu’s recent historic State Visit to the United Kingdom, where he met with His Majesty King Charles III at Windsor Castle.
The UK High Commissioner to Nigeria, Richard Montgomery, who was present at the Wednesday meeting, expressed satisfaction with the progress made since the visit. He noted that beyond the ceremony, “big investment deals” are already in motion, including the UK-financed rehabilitation of the Lagos Ports.
“I know that Their Majesties, the King and the Queen, were delighted with the visit. We are satisfied with the substance of our agreements, particularly in infrastructure and trade,” Montgomery said.
President Tinubu concluded by emphasizing that the relationship between Nigeria and Great Britain, fostered by “forebears,” must continue to evolve. “We celebrate your 90 years in Nigeria and look forward to a stronger, more rewarding partnership that aligns with our national priorities,” the President said.
OBSERVERS TIMES Analysis:
The clearing of airline backlogs by the CBN marks a significant shift in Nigeria’s monetary policy management. By addressing the “trapped funds” issue, the Tinubu administration is effectively signaling to the global community that Nigeria is ‘open for business,’ prioritizing liquidity in the foreign exchange market to prevent the kind of service withdrawals seen in late 2023 and 2024.
