Business
‘Flight Ticket Sales In Dollars’ll Reduce Trapped Funds Backlog’
There are indications that sale of air tickets in dollars would reduce the backlog of trapped foreign airlines funds in Nigeria, as part of efforts to address the issue.
This development, according to aviation analysts, would put an end to trapped funds in the country and also address the fear of foreign airlines, reducing their frequencies in the country.
An aviation analyst, and flight despatcher, Simeon Uchendu, in an interaction with aviation correspondents, said foreign airlines contribute over 70 per cent of aviation earnings in the country.
He noted that due to the significant rise of their funds trapped in the country over the past one year, they are mulling massive reductions in their frequencies to Nigeria.
According to him, foreign airlines collect Naira for their tickets, and exchange the same for foreign currencies for their operations but they have been lamenting their inability to get the exchange executed through the official foreign exchange market due to the scarcity of foreign exchange resources.
From the revealed analysis on breakdown of the trapped funds as of December 2022, the fund stood at $549 million, and that this later rose to $662 million in January 2023 and is currently at $744 million, which is an increase of 11 per cent when compared to the previous month.
This development, he said, led to suspension of operations by foreign airlines, like the United Arab Emirates flag carrier, the Emirates Airline operating over 21 flights, which suspended its operation indefinitely in Nigeria in October 2022.
Also in a chat with the Director of Research, Kenrich Travels Limited, Mr. Francis Ihenacho, he stressed that the suspension of operations in Nigeria by Emirates Airlines has a spiral effect on the allied services in the country to the airline.
“Apart from the Maintenance Repair and Operate (MRO) firm, other allied organisations to Emirates like hotels, catering services, car hire, security, expatriates, fuelers and other backup companies would be affected by the decision of the airline to quit the Nigerian scene.
“The Federal Government should take a cue from the Zimbabwean government, which allowed the foreign airlines operating in its country to sell tickets in dollars.
“Rather than insisting on naira sales for the airlines, dollar sales would reduce the challenge of blocked funds currently being experienced by the foreign airlines.
“The Federal Government should also merge the black market rate with the official rate, this would reduce the challenge. By and large, we should find a way out of this crisis. Zimbabwe was also affected and it has told the airlines to sell tickets in dollars.
“Even, the fuel suppliers are feeling the pains. Now, the fuel suppliers that refused to collect naira from Emirates are now collecting zero naira and zero dollars.
“So, we are all feeling the pain. I think the Nigerian oil companies should have collected naira, rather than insisting in dollars from Emirates and today, everybody on that value chain that gained from the services of Emirates are all down without jobs”, he noted.
By: Corlins Walter
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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