FX scarcity: BA, Lufthansa, others clear trapped funds

Lufthansa has confirmed clearing its backlog of trapped funds in ticket sales from Nigeria few hours after the British Airways said its funds which were not disclosed have been fully paid.

The Central Bank of Nigeria (CBN)’s regular interventions on foreign exchange has assisted in clearing the backlogs which originally was estimated at over $600m in 2016.

A spokesman for Lufthansa told Daily Trust that the trapped funds have normalized.

The “Last information I have from management is that everything is back in normal range”, the spokesman said.

Usually, the airlines sold their tickets in naira and then approach the CBN to convert the monies to dollars for repatriation in line with the Bilateral Air Service Agreement (BASA) which provides a repatriation clause.

Following the acute forex shortage Nigeria experienced in 2016 with the airlines’ funds accumulating, some airlines suspended been flight operations to the country while others reduced their frequency.

For instance, Emirates reduced its frequencies in Lagos and suspended its three weekly flights to Abuja.

Meanwhile, Emirates Airlines said its commitment to staff welfare explained why it retained its staff in Abuja when the route was suspended in 2016.

It said the staff had their full pay and benefits till flight operations resumed on December 15, 2017, rather than been laid off, according to an Emirates statement.